Interstate, Harte Holdings JV Completes $207M Hotel Buy
- Feb 06, 2008
Interstate Hotels & Resorts has completed the acquisition of four US hotels from affiliates of the Blackstone Group for a total of about $207.8 million. The deal was structured as a joint venture with partner Harte Holdings of Cork, Ireland. The four properties included in the JV are the 198-room Sheraton Frazer Great Valley in suburban Philadelphia; the 327-room Hilton Lafayette in Lafayette, La.; the 142-room Latham Hotel Georgetown in Washington, DC; and the Sheraton Mahwah in Mahwah, NJ (pictured). Interstate invested about $11.5 million, for a 20 percent equity interest in the four hotels. The partnership plans to invest more than $30 million for renovations on the hotels over the next two year, with Interstate’s contribution expected to be about $2 million. Interstate will manage the properties. Counting the new holdings, Arlington, Va.-based Interstate now owns seven hotels and has a minority ownership interest in 26 hotels and resorts, and the company and its affiliates manage a total of 197 hospitality properties in North America and Europe with a total of nearly 44,000 rooms. Harte Holdings is an investment and development company that predominantly owns commercial and residential real estate projects in the UK, Ireland and mainland Europe.