The Carlyle Group Acquires 892-Room, Four-Hotel Portfolio in San Francisco Bay Area; Properties to be Managed by Prism Hotels & Resorts
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The Carlyle Group Acquires 892-Room, Four-Hotel Portfolio in San Francisco Bay Area; Properties to be Managed by Prism Hotels & Resorts
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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 2007-07-24
Global private equity firm The Carlyle Group has acquired an 892-room portfolio of hotel properties in northern California. The four-hotel acquisition includes the 309-room Crowne Plaza Hotel at the San Francisco International Airport; the 230-room Holiday Inn in northeast Sacramento; and the 198-room Holiday Inn Concord and 155-room Holiday Inn Walnut Creek hotels, both located in the East Bay Area. Financial terms were not disclosed.
“The San Francisco Bay area is one of the last markets to recover from the latest economic downturn and we’re now seeing considerable growth there,” said Paul Brady, managing director of Carlyle’s U.S. real estate group. “We are excited by the prospects of investing approximately $8 million towards capital upgrades of the properties and hiring Prism Hotels to re-focus the management efforts at the properties. Our ability to acquire these properties at a discount to replacement cost is consistent with our fund’s strategy.”
Dallas-based Prism Hotels & Resorts has been tapped to manage the properties for The Carlyle Group. The hotel management company currently manages more than 5,000 rooms across the United States and the Caribbean.
“We are pleased to increase our presence in the Bay area and are excited to partner with such an esteemed company as The Carlyle Group, as well as the strong group of employees at each of the properties,” said Steve Van, chief executive officer of Prism Hotels & Resorts.
"Northern California is an important area for IHG and we are pleased to work with The Carlyle Group," said Brian Quinn, RVP Crowne Plaza Development for IHG. "This investment by The Carlyle Group is a testament to the strength of our relationship and The Carlyle Group’s confidence in IHG’s brands, Crowne Plaza, Holiday Inn and Holiday Inn Express, as hotels that guests know well and love."
All four properties will continue to operate as franchises under the Intercontinental Hotels Group umbrella, although the Walnut Creek property will be converted to a Holiday Inn Express once the renovation is complete.
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