|PROVIDENCE, R.I., July 5, 2005 — The Procaccianti Group (TPG), today
announced that it has completed the acquisition of three Doubletree Guest
Suites and two Doubletree hotels from GE Asset Management for $300 million.
The five hotels are
“This is an exceptional opportunity for us to expand our portfolio across the country with a quality portfolio of upscale, full-service assets in top markets unencumbered by management and flag,” said Gregory D. Vickowski, TPG’s chief financial officer.
“This investment reflects our strategy of acquiring high quality assets in difficult to replace locations with high barriers to entry,” Vickowski added. “These acquisitions, which can benefit from renovation and/or re-branding, were made at a significant discount to replacement cost.”
Specifics on the five hotels:
The Doubletree Guest Suites in Chicago, Ill., the country’s second largest market, will be completely renovated and re-branded as a Hilton Suites. The 345-suite hotel is located just one block from downtown Chicago’s “Magnificent Mile.”
The Doubletree Guest Suites in Atlanta, Ga., located in Atlanta’s premier business district, will be converted to a Hilton Suites. The 224- suite hotel is minutes north of downtown Atlanta near the upscale Perimeter Mall, with 27 million square feet of office space in the immediate vicinity.
The Doubletree Guest Suites Santa Monica, Calif., located one block from the famous Santa Monica Pier, will be converted to an Embassy Suites. The renovation and re-branding of this 253-suite hotel to an all-suite property enables the hotel to capture weekend and leisure business as well as continue to cater to weekday commercial demand.
The Doubletree Resort Paradise Valley, Ariz. will be repositioned as a resort and spa. The 387-room resort will have two large pools featuring water slides and sports, poolside bars, cabanas and other upscale amenities. TPG plans to retrofit an office building adjacent to the hotel into a full-service, upscale spa. With many area hotels converting to condos, occupancy rates have been rising steadily at the remaining hotels.
The Doubletree in Tyson’s Corner, Va., will be totally renovated and will be re-branded as a Westin Hotel upon completion of the refurbishment. The 401-room hotel, located close to downtown Washington, D.C., Dulles International Airport, Reagan International Airport and Tyson’s Corner Shopping Center, will include a new, outdoor restaurant, new meeting space and a completely new lobby.
“We are very excited to be staying with the Hilton family of brands, as well as expanding our relationship with Starwood Hotels & Resorts and the Westin Brand,” Vickowski added. “Both are well respected within the industry and with consumers. We look forward to future opportunities to work together.”
About the Procaccianti Group
|Also See:||Crown Realty & Development Planning to Spend Up to $30 million Sprucing Up The Doubletree La Posada Resort in Paradise Valley, Arizona / May 2004|
|The Procaccianti Group's Unpaid Loans from the Credit Union Crisis of the Early 1990s, Leaves Deal to Acquire the Rhode Island Owned Westin Providence for $95.5 million in Doubt / January 2005|