Amstar Group adds to hotel portfolio with acquisition of the Hilton Pasadena
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Amstar Group adds to hotel portfolio with acquisition of the Hilton Pasadena
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Catégorie : Amérique du Nord et Antilles
Ceci est un communiqué de presse sélectionné par notre comité éditorial et mis en ligne gratuitement le 09-01-2006
Amstar Group, a Denver-based real estate private equity firm, today announced the all-cash acquisition of the Hilton Pasadena. The hotel, a premiere hospitality offering in the heart of Pasadena, will retain the Hilton flag. The purchase marked the fourth occasion Amstar has partnered with Davidson Hotel Company in a hospitality transaction, and Davidson has been retained to manage the property. Amstar and Davidson plan to complete the hotel’s repositioning with an investment of approximately $3 million, with completion expected by mid-year 2006.
This acquisition is the latest under Amstar’s $1.5 billion investment program. The firm committed approximately $700 million during 2005, and expects to place the same amount in 2006. Amstar purchased the Hilton Pasadena from The Carlyle Group and Davidson Hotel Company. The sellers were represented by Arthur Buser, Managing Director of Jones Lang LaSalle Hotels, while Amstar represented itself in the transaction.
The Hilton Pasadena, with its 296 rooms and approximately 27,000 square feet of meeting space, is located on Los Robles Avenue in the heart of Pasadena within walking distance of the Convention Center and Old Town. Additionally, it is less than five miles from the Rose Bowl and offers easy freeway access to the Los Angeles metroplex and to greater Southern California.
“We are excited about this investment for several reasons. We teamed up with a great partner in whom we have the utmost confidence, the hotel has a strong brand in an attractive supply-constrained market, and we see significant opportunities to add value through completion of the repositioning,” said Gabe L. Finke, Amstar Group CEO. “This acquisition marks our fourth transaction with Davidson, and together our team could demonstrate to the seller an unmatched ability to close in an expedited timeframe. This illustrates the advantages Amstar and our long-term partners enjoy in highly competitive markets.”
“We are thrilled to be part of a team that continues to seek and find hotel acquisition opportunities across the country,” said John A. Belden, President and CEO of Davidson Hotel Company. “The kind of association that has been created between Davidson and Amstar is exactly what’s needed to succeed in the hospitality industry today. Together we have achieved terrific results and we expect that to continue at the Hilton Pasadena.”
Amstar previously partnered with Davidson in its June 2005 acquisition of the Hilton Alexandria Mark Center in Alexandria, Virginia, which is currently undergoing a $10 million renovation. Other hotels Davidson has managed for Amstar include the Doubletree Hotel in Palm Beach Gardens, Florida, and an independent hotel in Washington, D.C., that was repositioned and sold by Amstar during 2004, with Davidson staying on as the hotel manager for the new owner.
“This is a smart acquisition for Amstar because of the property’s tremendous upside potential. Rapidly escalating construction costs and lack of developable land makes Pasadena an extremely high barriers-to-entry market. The property’s location is superb. Southern California, and more specifically the Tri-Cities’ area, has acquired worldwide status as the epicenter of the entertainment industry, which accounts for $35 billion in economic activity. The hotel also benefits from its close proximity to the Pasadena Convention Center, which will undergo a $100 million expansion to increase its total size from 75,000 to 125,000 square feet,” said Arthur Buser.
“Amstar won this opportunity via JLLH’s competitive sales process because of its advantageous capital position. Amstar’s all-cash closing and the team’s successful history with Hilton allowed them to move quickly,” added Paul Brady, Managing Director of The Carlyle Group.
The Hilton Pasadena acquisition is the latest illustration of Amstar’s strategic commitment to Southern California. Other recent Southern California investments include an office complex in Torrance and three development projects, including two multifamily communities in Los Angeles and a new office campus in Westlake Village.
About Amstar Group
Established in 1987, Amstar Group is one of the leading real estate private equity firms in the United States. The Denver-based company invests nationally in value-add acquisition and development opportunities, often with local partners. In its history Amstar has acquired, developed and sold more than $2 billion of real estate. Amstar’s current portfolio includes a mix of office, multifamily and hospitality holdings in addition to a development pipeline of industrial, multifamily and retail projects. For more information about Amstar Group visit the company’s website at www.amstargroup.com.
About Davidson Hotel Company
Davidson Hotel Company is a full-service lodging company providing management, development, consulting and accounting expertise for the hospitality industry. The company currently manages 24 upscale hotels across the United States under such flags as Hilton, Embassy Suites, Doubletree, Marriott, Renaissance, and Sheraton. These hotels represent approximately 7,000 rooms and 3,500 employees. Additional information can be found on the company’s website at www.davidsonhotels.com.
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