MCLEAN, VA-A big deal has been struck between McLean, VA-based Highland Hospitality Corp. and Wyndham International Inc. A whopping $227 million will change hands between the two companies now that Highland has signed a definitive agreement to take four properties off of Wyndham’s hands. The transaction will allow Highland to add nearly 1,700 hotel rooms to its portfolio. The hotel REIT currently owns eight hotels accounting for approximately 2,200 rooms in five states.
In Parsippany, NJ, Highland will take over the 510-room Hilton as its own. Included in the hotel’s amenities are 25,000 sf of function space, tennis and racquetball courts, two swimming pools, a fitness facility and two restaurants, including a Ruth’s Chris Steak House. Highland will also become the new owner of Atlanta’s 495-room Crowne Plaza Ravinia, which features 12,000 sf of meeting space, a four-star dining facility, as well as a pool, tennis court and fitness center.
The Wyndham Wind Watch Hotel, located in Hauppauge, NY on Long Island, will join Highland’s portfolio, as well. The 360-room Wind Watch is home to the 18-hole champion Hamlet Golf Club, and offers about 14,000 sf of meeting space and an exercise center. The multi-million-dollar package also includes Tremont Boston–a Wyndham Historic Hotel, located in the city’s theater district. In addition to its 322 guestrooms, the hotel offers 13,000 sf of event space, a health club, restaurant, lounge and nightclub.
“This acquisition fits well with our stated strategy of investing in upscale full-service hotels in major urban markets with high barriers to entry,” says Highland president and CEO James L. Francis. “We will further invest additional capital after closing in order to reposition and renovate the portfolio, including the re-branding of two hotels. This portfolio will be a great addition to our balance sheet and will perform well as our industry and these key markets continue to recover.”