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Five Hotels for Aggregate $29.5 Million |
| ARLINGTON, Va., March 2, 2004—MeriStar Hospitality
Corporation (NYSE: MHX), one of the nation’s largest hotel real estate
investment trusts (REIT), today announced that it has completed the sale
of five hotels, in separate transactions, with a total of 1,245 rooms for
aggregate gross proceeds of $29.5 million. The sales are part of
a previously announced plan to dispose of non-core hotel properties and
reshape the company’s portfolio. Proceeds from the sales may be used
to repay senior debt, reinvest in the company’s core properties, or for
hotel acquisitions.
The five hotels are:
“The sales were completed in line with our expected pricing,” said Paul W. Whetsell, chairman and chief executive officer. “Since January 2003, the company has sold 23 hotels (4,657 rooms) at an average of $40,000 per room. The proceeds will allow us to further strengthen our balance sheet by repaying debt and reinvesting in our core properties in order to yield superior returns.” Arlington, Va.-based MeriStar Hospitality Corporation owns 84 principally upscale, full-service hotels in major markets and resort locations with 22,924 rooms in 23 states, the District of Columbia and Canada. This press release contains forward-looking statements about MeriStar Hospitality Corporation, including those statements regarding future operating results, the timing and composition of revenues and expected proceeds from asset sales, among others. |
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Bruce Riggins VP, Strategic Planning & Analysis (703) 812-7223 www.meristar.com |