CapStar Hotels Completes Six-Hotel Acquisition Transaction.WASHINGTON--(BUSINESS WIRE)--April 2, 1997-- Increases Board Membership to 10; Buys First Hotels in Canada and Forms Partnership with Dallas-Based Real Estate Investor A real estate investor is someone who actively or passively invests in real estate. An active investor may buy a property, make repairs and/or improvements to the property, and sell it later for a profit. CapStar Hotel Company (NYSE NYSE See: New York Stock Exchange : CHO CHO Carbohydrate (chemical formla Carbon Hydrogen Oxygen) CHO Chinese Hamster Ovary CHO Chemical Hygiene Officer CHO Chief Health Officer (corporate title) ), a leading hotel management and investment corporation, today announced that it has completed the acquisition of six hotels from Highgate Hotels, Inc., a privately held, Dallas-based real estate investment company, for $68 million in cash and $32 million in Operating Partnership Units. The portfolio brings to 18 the total number of hotels CapStar has acquired since its August 1996 initial public offering, an increase of 150 percent. CapStar also announced that the two companies have entered into an agreement to work together on future hotel acquisitions. As part of the agreement, Mahmood Khimji, 36, senior vice president of Highgate Hotels, Inc., has been nominated to CapStar's board of directors, increasing the total number of board members to 10. In addition to the six acquired hotels, CapStar manages two hotels owned by affiliates of Highgate. They are the 414-room, Pontchartrain-Crowne Plaza in Detroit, Mich. and the 393-room, Four Points Hotel in suburban Atlanta. "The acquisition of the Highgate portfolio enhances CapStar's geographic diversity by giving us our first hotels in Canada," said Paul Whetsell, chairman and chief executive officer. "The additional experience that Mahmood brings to CapStar will provide significant benefits to our ongoing acquisition and corporate developments." The six hotels in the Highgate portfolio include the 280-room Guildford Sheraton Hotel, Vancouver, British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography ; 170-room Holiday Inn Calgary Airport, Calgary, Alberta; 118-room Ramada ra·ma·da n. Southwestern U.S. 1. a. An open or semienclosed shelter roofed with brush or branches, designed especially to provide shade. b. An open porch or breezeway. 2. Hotel, Vancouver, British Columbia; 305-room Radisson Hotel Mockingbird mockingbird: see mimic thrush. mockingbird Any of several New World birds of a family (Mimidae) known for their mimicry of birdsong. The common, or northern, mockingbird (Mimus polyglottos) can imitate the songs of 20 or more species within 10 West, Dallas; 348-room Holiday Inn Select, Dallas; and 137-suite Doubletree Guest Suites, Indianapolis. CapStar plans to invest a total of $4.35 million for renovations at these properties. "We purchased the portfolio at approximately 65 percent of replacement cost in markets with high barriers to entry," Whetsell said. "Upon completion of our renovation programs, the properties will be in top physical condition in strong and growing markets, with multiple demand generators. Additionally, we believe the implementation of our proprietary management and marketing programs will create significant 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 at each of the hotels." Washington, D.C.-based CapStar owns and manages upscale, full-service hotels throughout the U.S. under such internationally known brands as Hilton, Sheraton, Marriott, Embassy Suites, Holiday Inn Select and Westin. With the acquisition of the six Highgate properties, CapStar's hotel portfolio comprises 30 owned hotels with 7,706 rooms and 31 managed hotels with 5,488 rooms, or a total of 61 properties with 13,194 rooms. The company is actively seeking acquisitions and management contracts in major markets throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . CONTACT: John Emery emery: see corundum. emery Granular rock consisting of a mixture of the mineral corundum (aluminum oxide, Al2O3) and iron oxides such as magnetite (Fe3O4) or hematite (Fe2O3). Treasurer 202/965-4455 or Morgen-Walke Associates Robert Jones/Vince Daniels/Jim Cappuccio Leslie Feldman (financial media) 212/850-5600 or Daly Gray Jerry Daly or Carol McCune (media) 609/383-1414 |
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