CORRECTION/Starwood Lodging completes $17.4 million acquisition of performing debt related to Holiday Inn, Milpitas, Calif.PHOENIX--(BUSINESS WIRE)--Aug. 22, 1996--Starwood Lodging Trust (the "trust"), a real estate investment trust, and Starwood Lodging Corp. (the "corporation," and collectively with the trust, "the company"), a hotel management and operating company operating company A business that engages in transactions with outsiders. , whose shares are paired and trade together as a unit (NYSE NYSE See: New York Stock Exchange :HOT), Thursday announced the completion of the purchase for $17.4 million of approximately $24.8 million (principal plus accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. ) of debt related to the Holiday Inn, Milpitas, Calif. The seller was Berkeley Federal Bank and Trust FSB (FrontSide Bus) See system bus. FSB - front side bus . The transaction was sourced, structured and negotiated on behalf of the company by Starwood Capital Group, L.P., a diversified real estate investment firm based in Greenwich, Conn. Constructed in 1987, the Holiday Inn, Milpitas is a 12-story, 305-room, first-class, full-service hotel. The 4.5 acre site is located in the heart of Silicon Valley, three minutes from the Milpitas Central Business District at the intersection of Highway 237 and Interstate 880. The company noted that the asset is in very good condition and is positioned well to compete in Silicon Valley's thriving upscale hotel market. "Given the short maturity date of the notes, we expect to acquire the equity interest in this property," said Barry S. Sternlicht, chairman and chief executive officer of Starwood Lodging Trust. "In any case, we anticipate attractive returns on this transaction -- either through retirement of the debt at face value upon maturity or via acquisition of the equity interest." The debt, with a maturity date of Dec. 31, 1997, consists of two pieces: a first mortgage lien with a principal and accrued interest balance of approximately $17.65 million, and an unsecured junior note with a principal and accrued interest balance of approximately $7.13 million. With an equity market capitalization Equity Market Capitalization A measure of the total market value of an equity market. The measure is calculated by taking the market capitalization of all companies in the equity market and adding them together to arrive at the capitalization for the market as a whole. exceeding $1 billion, Starwood Lodging Trust is the largest hotel REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). in the United States. The trust, which conducts all of its business as general partner of SLT SLT Salut (French) SLT Sri Lanka Telecom SLT Senior Leadership Team SLT Something Like That SLT Selective Laser Trabeculoplasty SLT South Lake Tahoe (California) SLT Single Line Telephone Realty Limited Partnership, is the only hotel REIT whose shares are paired with a hotel operating company, Starwood Lodging Corp. The corporation, which conducts substantially all of its business as managing general partner of SLC (Subscriber Loop Carrier) Lucent's designation for its digital loop carrier (DLC) products. See digital loop carrier. See also 386SLC. Operating Limited Partnership, leases properties from the trust and operates them directly or through third party management companies. CONTACT: Starwood Lodging Trust Barry Sternlicht, 203/861-2100 Ron Brown, 602/852-3900 or Financial Relations Board, Los Angeles Daniel Saks (general information) Moira Conlon (analyst contact) Steven Seiler (media contact) 310/442-0599 |
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