Interstate Hotels & Resorts and Premier Properties USA Form Partnership to Build Three Hotels in Joint Ventures
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Interstate Hotels & Resorts and Premier Properties USA Form Partnership to Build Three Hotels in Joint Ventures
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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 2007-08-08
Hotels Will Be Centerpiece of Premier Properties' Lifestyle/Retail Centers
Interstate Hotels & Resorts (NYSE: IHR), one of the nation's largest independent hotel management companies, today announced the formation of a joint venture partnership with Indianapolis-based Premier Properties USA, a rapidly growing retail and lifestyle development company, to build three hotels: a Hyatt Place and two aloft Hotels. Each of the properties will be located within a Premier Properties' lifestyle & retail center, which include high-end retail shops, dining outlets, and entertainment venues. Interstate will invest a 15 percent equity interest in the joint venture and will manage all three properties when they open.
The hotels to be developed are the 114-room Hyatt Place at The Marquis in Williamsburg, Va.; the 136-room aloft at The Metropolis in Plainfield, Ind., near Indianapolis; and the 136-room aloft at The Venu in Indianapolis.
"This is our 13th joint venture partnership and represents a continuation of our strategic plan to expand our real estate ownership through minority equity positions as a complement to our management contract business, which remains our core business," said Thomas Hewitt, Interstate's chief executive officer. "It is also our first joint venture with Premier Properties USA, a highly respected, innovative developer with a proven track record in mixed-use development. The addition of these properties to Premier's mixed-use centers is an exciting new business model and one we believe has solid growth potential. Premier's management team has more than 150 years of combined experience in development, construction and leasing, and we look forward to expanding our relationship in the future."
"These hotel brands were selected because they reflect the lifestyle of the people we want to attract to our developments," said Chris White, founder and chief executive officer of Premier Properties USA. "The hotels add to the overall ambiance while driving in customers for the retail component. Interstate was a logical choice because of their expertise with lifestyle brands and their willingness to invest alongside us, which we believe will result in superior returns."
"The ownership of hotels in a mixed-use setting and the addition of our first Hyatt Place and two more aloft Hotels further diversifies our real estate portfolio," said Leslie Ng, Interstate's chief investment officer. "Hyatt Place is attracting a great deal of interest within the development community, and we are delighted to be associated early on with what appears to be a runaway hit. Research suggests minimal new supply in these markets for at least the next three years, which we believe translates into excellent growth potential for these properties."
Hyatt Place at the Marquis, Williamsburg, Virginia
The 114-room Hyatt Place Williamsburg will be located in The Marquis, a new multi-million dollar development, currently under construction and scheduled to open in 2008. The one-million-square-foot, mixed-use, open-air, entertainment and retail center is located off of Interstate 64, in close proximity to Williamsburg's historical and adventure attractions. Construction of the hotel is expected to begin in late 2007.
aloft Metropolis at Plainfield, Indiana
Located 10 miles southwest of downtown Indianapolis, Metropolis is an existing dining, shopping and entertainment lifestyle center developed by Premier Properties in 2005. Located in the third-largest retail market in Indianapolis, Metropolis encompasses two million square feet of space. Phase I is already open, with more than 500,000 square feet of space occupied. Premier Properties is developing an additional 500,000 square feet as part of Phase II. In early July, the company announced the addition of a banquet hall to Metropolis, with space to accommodate groups of up to 500 people. Construction of the hotel is expected to commence in early 2008.
The Metropolis project is located at the new entrance of the renovated Indianapolis International Airport; the 136-room aloft hotel will be adjacent to the Metropolis center.
aloft at The Venu, Indianapolis, Indiana
The Venu is a new lifestyle center located in a residential and business hub of Indianapolis, Indiana. The development will include the aloft Hotel, high-end retail shops, office, residential, restaurants, a state of the art performing arts theater, and a natural foods supermarket. The anticipated ground breaking of the hotel is scheduled for 2008.
In addition to the entertainment and retail aspects of The Venu, the center is surrounded by 120,000 square feet of office space, which will allow the hotel to capitalize on the business travel market.
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