$207.8 million

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The four properties included in the joint venture acquisitionare: the Sheraton Frazer Great Valley in Frazer, PA, which has 198rooms; the Sheraton Mahwah in New Jersey, which has 225 rooms; theLatham Hotel Georgetown in Washington, DC, which has 142 rooms; andthe Hilton Lafayette in Louisiana, which has 327 rooms.

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Interstate manages all four hotels under new managementagreements. Interstate funded the acquisition with available cashand capacity under its senior revolving credit facility.

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Leslie Ng, Interstate's CIO, said in December that the companywill continue to seek global opportunities and relationships."Harte Holdings is a highly regarded Irish investment anddevelopment company which owns a wide variety of real estateprojects in the UK, Ireland and mainland Europe, and we lookforward to exploring other opportunities together, bothdomestically and abroad."

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According to a statement Interstate gave when it first revealedthe JV acquisition, the partnership plans to invest more than $30million of additional funds for renovations on the hotels over the24 months following the acquisition. Interstate's contribution isexpected to be approximately $2 million.

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"This joint venture represents a continuation of our hotel realestate ownership strategy and expands our JV partner universe,"explained Thomas Hewitt, Interstate's CEO in a statement at thetime. "The four-hotel portfolio was attractively priced, at orbelow replacement costs, and aligns well with our portfolio ofwholly owned and JV real estate holdings."

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Hewitt said at the time that this hotel package includes two keyupscale, full-service brands, Hilton and Sheraton, and awell-recognized independent boutique hotel in Georgetown thatoffers significant repositioning opportunity. Three of theproperties are located in key urban and major suburban markets withstrong barriers to entry--Washington, DC, northern New Jersey andthe Philadelphia area. "The fourth property, the Hilton inLafayette, LA, is having an exceptional year with RevPAR growth inexcess of 20%, and we expect the hotel to provide strong, stablecash flow going forward. With the anticipated capital investment,this entire portfolio has considerable upside operating potential,"he said.

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Natalie Dolce

Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.