MeriStar Hospitality sells five hotels
MeriStar Hospitality Corporation has sold five hotels, in separate transactions, for $58.5 million in gross proceeds during the 2005 fourth quarter.The properties include:
* Hilton Salt Lake City Airport (287 rooms)
* Doubletree Bradley International Airport in Hartford, Conn. (200
* Hilton in Durham, N.C. (194 rooms)
* Crowne Plaza—San Jose, Calif. (239 rooms)
* Holiday Inn—Madison, Wis. (194 rooms)
“These sales are part of our previously announced asset disposition program which is designed to take advantage of the strong pricing currently realizable in the hotel real estate market,” said Paul Whetsell, chairman and CEO.
“We were able to sell these five properties at a 14-times trailing- twelve-month EBITDA multiple on a combined basis. We intend to use the proceeds from our asset disposition program to improve our balance sheet primarily through debt reduction, particularly our 10.5 percent callable senior notes.”
Jones Lang LaSalle Hotels acted as broker on the Hilton Salt Lake City and Hilton Durham, Molinaro Koger brokered the Holiday Inn Madison, Colliers brokered the Crowne Plaza San Jose, and Pinnacle Realty Investments brokered the Doubletree Bradley International Airport.