Ashford pays $95m for hotel.Sonnenblick Goldman, serving as exclusive financial advisor to a partnership between Oxford Lodging Advisory & Investment Group, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control and Whitehall Street Global Real Estate Limited Partnership 2001, has arranged the sale of the 338-room Pan Pacific San Francisco Hotel for $95.0 million, or $281,065 per key. The buyer was Ashford Hospitality Trust, Inc., which announced that it has re-branded the hotel as the JW Marriott Hotel San Francisco. The property is owned under a ground lease which has a term expiring in 2083. In 2005, the property generated revenues of $25.5 million and net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. that equates to a 3.9% capitalization rate Capitalization Rate According to the Appraisal Institute, it is a method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, by dividing the income estimate by an appropriate rate. on that year's performance. Re-branding of the hotel to JW Marriott and other renovation work, which will consist of revenue enhancing upgrades to meeting space, guest rooms and food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. facilities, will commence immediately. Ashford expects to invest approximately $10 million in the re-branding and renovation of the hotel, which is expected to be completed by December 2007. "The San Francisco market is rebounding strongly and there is tremendous upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar that Ashford can achieve through the re-branding, renovation, and repositioning of the asset," commented Holden, Lim, vice president of Sonnenblick Goldman's San Francisco office. |
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