Interstate Hotels & Resorts Acquires Equity Interest in Boise Courtyard by Marriott
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Interstate Hotels & Resorts Acquires Equity Interest in Boise Courtyard by Marriott
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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 2006-12-13
Interstate Hotels & Resorts (NYSE: IHR), one of the nation's largest independent hotel management companies, today announced that it has acquired a 15.7 percent joint venture interest in the Courtyard by Marriott in Boise, Idaho, for $1.1 million. Cameron S-Sixteen Hospitality LLC is the majority owner of the hotel. Interstate will continue to manage the 162-room property, which it has operated since 1996.
"This acquisition expands our relationship with a proven local owner, with whom we collaborated successfully in June on the purchase, renovation and upgrade to the luxury segment of the Boise Statehouse Inn, which will be renamed Hotel 43," said Thomas F. Hewitt, chief executive officer. "We were able to acquire this high quality, select-service property at a very attractive price below replacement cost, and we believe it has considerable long-term potential, given the current outlook for growth in the greater Boise area. The Courtyard Boise is an award-winning hotel, well established in the community, and is very active in local charities. We believe in building strong community relationships because it creates a win-win situation for our hotels and the communities in which they operate."
Hewitt noted that the partnership had refinanced the existing mortgage to take advantage of lower available interest rates. "In addition to achieving significant savings in our interest expense, the greater borrowing capacity of the new mortgage allowed for a reduction in the equity required to close and allowed the partnership to collect additional loan proceeds that we intend to use to renovate the hotel over the next few years."
Located at 222 S. Broadway Ave., the AAA three-diamond rated Courtyard by Marriott is centrally located five miles from the Boise Airport, a half-mile from Boise State University and one mile from the Idaho State Capitol Building. Hotel amenities include the Courtyard Cafe, swimming pool, whirlpool, exercise room and laundry room. All rooms feature high-speed Internet access, cable TV, work desks, two-line phones, voicemail and dataports. The hotel has two meeting rooms, with a total of 1,300 square feet of meeting space.
"We have been impressed with Interstate's management skills at our properties and look forward to expanding our JV relationship," said Rick Clark, principal of Cameron Investments. "Their size and in-depth management support have helped our properties to become market leaders."
"This is the 12th hotel real estate asset we have invested in during 2006 and represents a continuation of our long-term strategy to further diversify our earnings base," said Leslie Ng, chief investment officer. "Our pipeline remains quite active, and we continue to aggressively seek JV partnerships and wholly owned properties, as well as development opportunities."
Cameron S-Sixteen Hospitality LLC, is a joint venture between Boise-based Cameron Investments, a real estate holding, development and private equity placement company, and S-Sixteen Limited Partnership.
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