Innkeepers USA Trust Completes Acquisition of Four-Hotel Southern California Portfolio
05 October 2006 - 11:58PM
PR Newswire (US)
Secures 5.98 Percent Long-term Financing PALM BEACH, Fla., Oct. 5
/PRNewswire-FirstCall/ -- Innkeepers USA Trust (NYSE:KPA), a hotel
real estate investment trust (REIT) and a leading owner of upscale
properties throughout the United States, today announced that it
has completed the acquisition of four hotels in Southern California
aggregating 931 rooms from Bethesda, Md.-based RLJ Urban Lodging
Fund, L.P., an affiliate of RLJ Development, LLC, for a total cost
of $215 million, or $231,000 per room. (Photo:
http://www.newscom.com/cgi-bin/prnh/20060727/DCTH015-a
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http://www.newscom.com/cgi-bin/prnh/20060727/DCTH015-d ) Property
Rooms Residence Inn San Diego (Mission Valley) 192 Residence Inn
Anaheim (Resort Area) 200 Hilton Suites Anaheim 230 Hilton Ontario
309 Total rooms 931 The acquisition was funded with a combination
of $81.3 million in borrowings under its unsecured line of credit
and the issuance of a $120.0 million financing package involving
three loans, all at a 10-year fixed rate of 5.98 percent that bear
interest only for three years and thereafter will amortize over a
30-year period. The loans are secured by the two Residence Inn
hotels and the Hilton Ontario. Capmark Finance, Inc. acted as sole
underwriter for the new financing. The company also assumed a $13.7
million term loan at a five-year fixed rate of 5.41 percent that
bears interest only through July 2007 and matures July 2010. The
loan is secured by the Hilton Suites Anaheim. Capmark Finance, Inc.
was the sole underwriter of the original loan. The company
estimates that its post-acquisition debt to total investment in
hotels at cost is approximately 39 percent, without regard to any
future borrowings or equity offerings. Additionally, these new term
loans reduce the average interest rate on the company's fixed-rate
debt to 6.8 percent from 7.8 percent at June 30th and extends its
weighted average maturity date to 6.7 years from 3.7 years.
"Southern California remains one of the strongest markets in the
country, and continues to grow at a brisk pace," said Jeffrey H.
Fisher, Innkeepers USA's chief executive officer and president.
"Together with our under- construction Embassy Suites hotel in
Valencia in the high-growth Santa Clarita Valley, these five hotels
give us a strong presence in this important market and represent a
significant source of future growth for us. "These top-tier branded
hotels are in prime markets, are in excellent physical condition,
and, combined with our planned $2 million in upgrades, will be in a
highly competitive position." Innkeepers Hospitality Management,
which is owned by Fisher, will manage the Hilton Suites Anaheim and
the Hilton Ontario hotels under long-term management agreements,
and the two Residence Inn hotels will be managed by a joint venture
between Summit Hospitality Group, Ltd. and Innkeepers Hospitality
Management. Innkeepers USA Trust owns 74 hotels with a total of
9,749 suites or rooms in 20 states and Washington, D.C., and
focuses on acquiring or developing premium-branded upscale
extended-stay and select-service hotels, the core of the company's
portfolio; selected full-service hotels; and turn-around
opportunities for hotels that operate under or can be converted to
the industry's leading brands. For more information about
Innkeepers USA Trust, visit the company's web site at
http://www.innkeepersusa.com/. Cautionary statements set forth in
reports filed by the company from time to time with the Securities
and Exchange Commission discuss important factors impacting, or
that could impact, the company and its results or forecasted
results. These factors include, without limitation, (i) risks that
war, terrorism or similar activities, widespread health alerts,
disruption in oil imports or higher oil prices or changes in
domestic or international political environments, have affected and
may continue to negatively affect the travel industry and the
company, and the negative effects of such events that may occur in
the future cannot be fully anticipated, (ii) the relative strength
and performance of businesses and industries that are important
demand generators in the company's key markets (e.g., technology,
automotive, aerospace), (iii) international, national, regional and
local economic conditions that will, among other things, affect
demand for the company's hotel rooms and the availability and terms
of financing, (iv) the company's ability to maintain its properties
in competitive condition, (v) the company's ability to acquire or
develop additional properties and risks that potential acquisitions
or developments may not perform in accordance with expectations,
(vi) changes in travel patterns or the prevailing means of commerce
(i.e., e- commerce), and (vii) the complex tax rules that the
company must satisfy to qualify as a REIT, and other governmental
regulation. CONTACT: Dennis Craven (Company) Jerry Daly or Carol
McCune Chief Financial Officer Daly Gray (Media) (561) 227-1302
(703) 435-6293
http://www.newscom.com/cgi-bin/prnh/20060727/DCTH015-a
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http://www.newscom.com/cgi-bin/prnh/20060727/DCTH015-d
http://photoarchive.ap.org/ DATASOURCE: Innkeepers USA Trust
CONTACT: Company: Dennis Craven, Chief Financial Officer of
Innkeepers USA Trust, +1-561-227-1302; or Media: Jerry Daly or
Carol McCune, both of Daly Gray, +1-703-435-6293 Web site:
http://www.innkeepersusa.com/
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