Highland Hospitality
Corporation , a lodging real estate investment trust, or REIT, announced
today the acquisition of the 283-room Radisson Hotel Mount Laurel, located
in Mount Laurel, New Jersey, for $14.25 million, or approximately $50,000
per room. Highland entered into a long-term agreement with Sage
Hospitality Resources to manage the property. James L. Francis, Highland’s President and CEO, stated, “The acquisition
of the Radisson Hotel Mount Laurel provides Highland with another
opportunity to renovate and reposition a hotel within a growing market. We
intend to invest significant capital to reposition this asset as an
upscale, full- service branded hotel. We believe these efforts will result
in strong current returns for our shareholders and significant capital
appreciation over time.”

The 283-room Radisson Hotel Mount Laurel is situated within Mount Laurel
Township, approximately ten miles east of Downtown Philadelphia and an
estimated 17 miles from Philadelphia International Airport. The hotel is
within close proximity to several corporate office parks that host such
companies as Lockheed Martin, Commerce Bank, Okidata and Cendant Mortgage.
The property contains approximately 12,000 square feet of flexible meeting
space and provides such amenities as a heated outdoor pool, high-speed
internet access, guestroom suites and a concierge level. Highland plans to
invest an additional $7.0 million to reposition the hotel and upgrade the
guestrooms, meeting space, restaurant, lounge and other common areas.

Highland Hospitality Corporation is a self-advised lodging real estate
investment trust, or REIT, focused on hotel investments primarily in the
United States. The Company now owns 15 hotel properties with an aggregate
of 4,451 rooms in eight states. Additional information can be found on the
company’s website at http://www.highlandhospitality.com/.
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