Interstate Hotels & Resorts Acquires JV Interest in Doral Tesoro Hotel & Golf Club
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Interstate Hotels & Resorts Acquires JV Interest in Doral Tesoro Hotel & Golf Club
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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 2006-06-21
Interstate Hotels & Resorts (NYSE: IHR), the nation's largest independent hotel management company, today announced that it has acquired for $2 million, a 21 percent equity interest in the 286-room Doral Tesoro Hotel & Golf Club near Dallas/Ft. Worth. Interstate has managed the property since late 2002.
"This is a high quality, full-service hotel with significant meeting space, food & beverage operations and a highly rated championship golf course," said Thomas F. Hewitt, Interstate's chief executive officer. "It fits well with our strategy of co-investing with select owners. When the new owners acquired the property in August last year, we began negotiating a plan under which Interstate would become a joint venture partner.
"We already have first-hand knowledge of the property and the market, and believe both have substantial upside potential," he noted. "Lodging demand is beginning to gain traction in Dallas-Ft. Worth, and minimal new supply is expected for the next few years. The property and golf course were renovated within the past two years, and the resort is in excellent physical condition. The joint venture plans to invest just in excess of $1 million to further upgrade the property."
Located at 3300 Championship Parkway in Ft. Worth, the resort is situated in Beechwood Business Park, a 902-acre master-planned, mixed-use community with convenient access to Interstate 35 and Highway 114, 20 miles north of Ft. Worth and 20 minutes from Dallas-Ft. Worth International Airport. The property also is adjacent to the Texas Motor Speedway, the second largest sporting venue in the United States and home to major sporting events, including several annual NASCAR races and a host of special concert events.
In addition to the Jay Morrish re-designed golf course, the property features a full range of luxury amenities, a fitness facility, two restaurants, a lounge, 24-hour room service, an exterior pool area and sun deck and the latest in audio-visual technology, Internet access and technical support. The property also houses approximately 20,000 square feet of sophisticated meeting and event space, including 14 rooms with a full range of conference facilities that can accommodate groups ranging in size up to 750 people.
"With this transaction, we continue to execute on our strategy of diversifying our earnings stream from third-party management contracts to include more real estate ownership, both in joint ventures and wholly owned," Hewitt added. "We also create a stable, long-term management contract. We will continue to look selectively for opportunities to increase our hotel real estate holdings, through partnerships and sliver investments as well as outright ownership."
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