Atlanta-based hotel brokerage firm Thompson Calhoun Fair has been hired to sell the properties in two tranches—with half closing in the coming year and the other half by 2005.
The sales are on top of the five closed by Arlington Hospitality and an equal number that are pending, according to the company. They also are expected to generate at least $11.5 million in cash, according to CFO Jim Dale, as well as free up $1.6 million a year in cash flow.
However, the sales also are being done to shift into joint venture projects involving development of AmeriHost Inns with 80 to 90 rooms in larger markets, according to the company. By 2005, Arlington Hospitality hopes to build 10 to 15 new hotels a year with joint venture partners. Before construction starts, though, Arlington Hospitality officials expect to have a portfolio of about 30 AmeriHost Inns and two others.
"We are selling these hotels to redeploy our assets into activities that will earn higher returns, such as hotel development for third parties and joint ventures," says president and CEO Jerry H. Herman in a statement.
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