Highland Acquires Pointe Hilton Tapatio Cliffs & Lookout Mountain Golf Club for $85 million
MCLEAN, Va., March 17, 2006. Highland Hospitality Corporation (NYSE: HIH - News), a lodging real estate investment trust, or REIT, announced today the acquisition of the 585-suite Pointe Hilton Tapatio Cliffs Resort & Lookout Mountain Golf Club located in Phoenix, Arizona for a purchase price of $85 million, plus customary closing costs, or approximately $145,300 per key. The company has entered into a long-term management agreement with Hilton Hotels Corporation (NYSE: HLT - News) to operate the property as a Hilton-branded resort.
James L. Francis, Highland's President and CEO, stated, "The acquisition of the Pointe Hilton Tapatio Cliffs Resort represents a compelling opportunity for our company to acquire a high-quality all-suite resort and championship golf course ideally situated in the northern Phoenix market. We will continue to implement Hilton's planned improvements to the hotel, and are excited about owning an upscale resort in a strong resort market at a price significantly below replacement cost".
The Pointe Hilton Tapatio Cliffs Resort & Lookout Mountain Golf Club is located in the northern suburbs of Phoenix, near Paradise Valley and Scottsdale. The 230-acre property is set against the mountainside, adjacent to the Phoenix Mountain Preserve, and offers an inspiring and picturesque setting with a blend of high-quality resort amenities. In addition to the 585 spacious two-room suites, the resort offers three lounges and four restaurants, including the renowned hilltop Different Pointe of View restaurant, a winner of the AAA Four Diamond Award for fifteen consecutive years.
Meeting space includes approximately 27,000 square feet of indoor meeting space and over 25,000 of outdoor function space. Recreational facilities include the well-regarded 6,600-yard championship Lookout Mountain Golf Course, consistently voted one of the top 25 golf courses in the state. Additional amenities include the Hilton Golf Academy, a large Pro Shop, a full-service spa and salon, a fitness center, two lighted tennis courts and eight resort pools including the 3.5-acre Falls Water Village. Information on this property may be found at www.pointehilton.com/tapatio-cliffs-quick-facts.htm and at www.differentpointeofview.com
Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
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