Interstate Acquires Hilton Westchase, TX
JANUARY 10, 2007. Interstate Hotels & Resorts (NYSE: IHR), one of the nation's largest independent hotel management companies, today announced that it has signed a definitive agreement to acquire the 297-room Hilton Houston Westchase hotel in Texas for $50.5 million, or $170,000 per key, from affiliates of The Blackstone Group. Interstate intends to finance the acquisition with approximately $33 million of non-recourse mortgage debt and the remainder with a combination of cash on hand and borrowings on its senior credit facility. The transaction is expected to close in the first quarter, becoming the company's fifth wholly owned property.
Subsequent to closing, the company will invest approximately $2 million to $3 million in capital improvements, which will complete a comprehensive $11 million renovation program, already in progress.
"This hotel is in fine physical condition and will be even more competitive following completion of the renovation program," said Thomas F. Hewitt, chief executive officer. "The hotel is in a premium location in the center of West Houston's booming commercial corridor, has great visibility and access, and is proximate to such major corporations as Chevron, Texaco, Shell Oil, Dow Chemical and BMC Software."
Located at 9999 Westheimer Road off the Beltway between Interstate 10 and Westpark Tollway, the property is convenient to Houston's Minute Maid Park, Reliant Stadium, Westside Tennis Club, The Toyota Center, The Galleria and Sam Houston Racepark. The property is easily accessible from both major airports and all major Texas interstates in the Houston area.
Hotel amenities include 13,000 square feet of flexible meeting space suitable for groups of up to 800, a state-of-the-art fitness room and outdoor pool/spa, an executive level, and a full-service restaurant and lounge. Guest rooms feature Hilton's Suite Dreams(R) luxury bedding package, voice mail, two line telephones, and web-TV.
"The Hilton Westchase is a market leader in its competitive set, and as one of the only full-service hotels in the area, enjoys substantial penetration premiums in occupancy and average rate," said Leslie Ng, chief investment officer. "This will be our fifth wholly owned property and continues our long-term strategy to further diversify our earnings base. Our pipeline remains quite active, and we continue to aggressively seek JV-investment partnerships and other wholly owned properties."
Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda,Maryland, USA, with more than 4,200 properties in 80 countries and territories. Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, BVlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 50 million members. For more information or reservations, please visit our website at 
