Crestline did not disclose the sales price of the portfolio;however an industry source tells GlobeSt.com that the entiretransaction, including the sale to Apple REIT Eight, was in excessof $200 million. A central laundry facility in Virginia Beach alsowas part of the sale. The transaction was arranged by a team led byDoug Henkel of CB Richard Ellis Hotels.

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Henkel tells GlobeSt.com that Crestline had been pursuing thisportfolio on and off for the past four years. At the end of lastyear, he says, the two firms sat down to seriously negotiate. "Thisportfolio was never marketed publicly," Henkel says. It is asignificant transaction for Crestline, he continues, as itincreases the firm's management portfolio by 25%. The 17 propertieswill add 2,400 rooms to the company's portfolio, which counts 66operating hotels and four under construction in 14 states and theDistrict of Columbia among its contracts.

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The Tidewater portfolio is concentrated primarily in Virginiaand in parts of North Carolina. Many of the hotels are on thebeachfront, located throughout Virginia Beach, Charlottesville,Chesapeake and Bedford in Virginia, as well as Carolina Beach andWilmington in North Carolina.

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The full-service regional laundry facility that BarcelóCrestline is also acquiring is located in Virginia Beach. Thefacility will continue to service the Tidewater properties, as wellas additional hotels currently managed by Crestline Hotels &Resorts in the area.The assets will transfer in three closing,Henkel says. Yesterday four hotels, the management company and thecentral laundry facility closed. Two more hotels will close in Julyand two hotels under development will close in Q4.

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When the deal is done, Crestline will be managing the following.In Virginia Beach: Holiday Inn Oceanside; Holiday Inn Surfside; theSheraton Oceanfront; Courtyard by Marriott VA Beach; Courtyard byMarriott 37th Street; Residence Inn Oceanfront; Fairfield Inn &Suites Oceanfront; Holiday Inn Sunpree; and SpringHill SuitesOceanfront. In Charlottesville: Courtyard by MarriottCharlottesville; and the Courtyard by Marriott Carolina Beach. InSuffolk: the Courtyard by Marriott Suffolk; and TownePlace SuitesSuffolk. In Chesapeake, it acquired the Staybridge SuitesChesapeake, a 115-key property and the 225-key Chesapeake Marriott,which will be opening this year. In Bedford, it acquired the Peaksof Otter Lodge. In Wimington, NC, it acquired Fairfield InnWilmington, a 124-room hotel that also will be opening in 2008. Itacquired the 140-key Courtyard by Marriott Carolina Beach inCarolina Beach.

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Courtyard by Marriott 25th Street, Courtyard by Marriott 37thStreet, Courtyard by Marriott Charlottesville, Courtyard byMarriott Carolina Beach, Courtyard by Marriott Suffolk, TownePlaceSuites Suffolk and Chesapeake Marriott Fairfield Inn Wilmington arethe eight hotels that transferred to Apple REIT Eight.

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