Hilton Announces Sale of 395-room Hilton DFW Lakes Hotel & Executive Conference Center
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Hilton Announces Sale of 395-room Hilton DFW Lakes Hotel & Executive Conference Center
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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 2005-12-21
Hilton Hotels Corporation (NYSE:HLT) announced today that it has sold the 395-room Hilton DFW Lakes Hotel & Executive Conference Center in Dallas, Texas, to an affiliate of Somera Capital Management for approximately $65.5 million. It is estimated that the new ownership will spend $6 million in additional capital to upgrade the property. The hotel will continue to operate as a Hilton branded property under the terms of a 20-year franchise agreement with Delaware-based Perini-Grapevine, Inc.
"We are pleased with the terms of this deal, which allows us to sell the hotel at an attractive price, while having it remain part of the Hilton brand through a franchise agreement," said Dave Sherf, senior vice president - Asset Management, Hilton Hotels Corporation.
"By renovating this hotel we will create a superior product in the vibrant and expanding DFW/Grapevine market," said David Brown, president and CEO of Somera Capital Management. "We are excited to work with our partners, Quorum Hotels and Resorts, the principals of which were involved in developing and operating this asset over 20 years ago."
Hilton Hotels Corporation is recognized internationally as a preeminent hospitality company. The company develops, owns, manages or franchises approximately 2,300 hotels, resorts and vacation ownership properties. Its portfolio includes many of the world's best known and most highly regarded hotel brands, including Hilton(R), Conrad(R), Doubletree(R), Embassy Suites Hotels(R), Hampton Inn(R), Hampton Inn & Suites(R), Hilton Garden Inn(R), Hilton Grand Vacations Club(R) and Homewood Suites by Hilton(R).
Somera Capital Management, LLC, founded in 1994, manages a diversified portfolio of private equity investments in real estate located across the United States. The company identifies and consummates unique value-added investment opportunities with local or specialty operating partners, and currently utilizes capital from Somera Realty Value Fund, L.P., a closed-end private equity fund. Since Somera Capital's formation, the firm has acquired and managed assets with a combined total market value in excess of $1.5 billion.
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