Interstate Hotels & Resorts Acquires Hilton Durham Near Duke University
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Interstate Hotels & Resorts Acquires Hilton Durham Near Duke University
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Category: North America & West Indies / Carribean islands
This is a press release selected by our editorial committee and published online for free on 2005-11-23
Interstate Hotels & Resorts (NYSE: IHR), the nation's largest independent hotel management company, today announced that it has acquired the 195-room Hilton Durham Near Duke University for a net purchase price of $13.3 million, or $68,000 per key, from MeriStar Hospitality Corporation (NYSE: MHX). The acquisition is being financed with available cash and borrowings under the company's senior credit facility. Interstate will continue to manage the property.
"As manager of this property since 1998, we know this hotel and this market extremely well," said Thomas F. Hewitt, Interstate chief executive officer. "The property recently underwent a $2.8 million renovation to the public areas, restaurants, meeting facilities and some guest rooms, and initially we plan on investing an additional $2.9 million to complete further upgrades. When the refurbishments are finished, the hotel will be fully renovated and well positioned to assume the leadership position in this market."
Located at 3800 Hillsborough Road, near the intersection of I-85 and U.S. Rt. 70, the hotel is proximate to two shopping malls and several dining and entertainment venues. The hotel is convenient to Raleigh/Durham Airport and offers easy access to the area's major universities, research centers and office parks, including Research Triangle Park, Treyburn Office Park and Duke University. More than 105 research and development companies are located in Research Triangle Park. The area is undergoing a renaissance with at least 13 major development projects under way or in the planning stages that will create additional office, residential and retail space.
The hotel features 10,000 square feet of recently renovated meeting space, two full-service restaurants -- the newly designed social venue, BLUE Sports Bar& Grille, and more formal Tipton's Restaurant -- as well as a lobby lounge, 24-hour business center, fitness center, sauna and seasonal outdoor pool. Guest rooms are spacious and include complimentary high-speed Internet access, and dual phone line with data ports and voicemail.
Interstate Hotels & Resorts operates nearly 300 hospitality properties with more than 67,000 rooms in 41 states, the District of Columbia, Canada, and Russia. BridgeStreet Worldwide, an Interstate Hotels & Resorts' subsidiary, is one of the world's largest corporate housing providers. BridgeStreet and its network of Global Partners offer more than 8,900 corporate apartments located in more than 90 MSAs throughout the United States and internationally. For more information about Interstate Hotels & Resorts, visit the company's Web site: www.ihrco.com.
This press release contains "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995, about Interstate Hotels & Resorts, including those statements regarding future operating results and the timing and composition of revenues, among others, and statements containing words such as "expects," "believes" or "will," which indicate that those statements are forward-looking. Except for historical information, the matters discussed in this press release are forward-looking statements that are subject to certain risks and uncertainties that could cause the actual results to differ materially, including the volatility of the national economy, economic conditions generally and the hotel and real estate markets specifically, the aftermath of the war with Iraq, international and geopolitical difficulties or health concerns, governmental actions, legislative and regulatory changes, availability of debt and equity capital, interest rates, competition, weather conditions or natural disasters, supply and demand for lodging facilities in our current and proposed market areas, and the company's ability to manage integration and growth. Additional risks are discussed in Interstate Hotels & Resorts' filings with the Securities and Exchange Commission, including Interstate Hotels & Resorts' annual report on Form 10-K for the year ended December 31, 2004.
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