Interstate Hotels Enters into JV to Own Lexington Hotel
- Aug 05, 2008
Interstate Hotels & Resorts has formed a joint venture with an affiliate of Madison W Properties L.L.C. to recapitalize the existing ownership of the former Radisson Plaza Hotel Lexington in Lexington, Ky., and an adjacent 234,000-square-foot Class A office building. The 367-room hotel is to undergo a $13 million renovation, after which it will be reflagged as a Hilton. Until then, it will be operated as an independent, the Lexington Downtown Hotel & Conference Center. The hotel is currently managed by Interstate, which also managed it for the previous owner, an affiliate of Blackstone Group L.P., Interstate senior vice president & treasurer Carrie McIntyre told CPN. Neither of the current partners previously had an ownership stake in the property, she added. Although Interstate has minority interests in 49 properties, CEO Thomas Hewitt noted in a prepared statement that this is the firm’s first JV with Madison. The 15-story hotel is on West Vine St., directly across from Rupp Arena and the Lexington Convention Center, to which it’s connected via skywalks. Its amenities include a pool, fitness center, restaurant and lounge, and 14,000 square feet of meeting facilities. McIntyre told CPN that the renovation is just in the design phase, so there is no start date, although the work should be complete some time next year. An affiliate of Madison Capital Management L.L.C., Madison W Properties has acquired more than $130 million of properties since its inception earlier this year. Interstate Hotels & Resorts has ownership interests in 56 hotels and resorts, including seven that are wholly owned. The company and its affiliates manage 221 hospitality properties totaling nearly 46,000 rooms in 36 states, the District of Columbia, Russia, Mexico, Belgium, Canada and Ireland.