Winston REIT JV Acquires Ramada Plaza Hotel

Officials with the joint venture say that the partnership plans to invest approximately $14 million into the property (including the purchase price and planned renovation), approximately $9 million of which is financed in debt. The hotel, located at 780 Bridgeport Ave., will be renovated and converted to a Courtyard by Marriott hotel. The renovation and conversion of the facility, which will remain under the Ramada franchise during construction, are expected to be completed during the first quarter of 2005.

The ownership of the hotel consists of the Charlesbank/Winston joint venture owning 87% of the hotel, while a partnership led by New Castle Hotels owns the remaining 13%. Charlesbank, headquartered in Boston, has ownership of 85% of the joint venture with Winston, which owns 15% of that entity. Winston Hotels is based in Raleigh, NC.

Commenting on the deal, Winston president and CFO Joe Green says, "This is our fourth acquisition with Charlesbank and our first property with New Castle, a highly regarded hotel operator."

Charlesbank principal Andy DiMatteo adds, "We see an opportunity to acquire hotels that can benefit from the joint venture's expertise in repositioning and turn-arounds. There are a substantial number of properties that have not fared well during the downturn of the past three years, and we can offer new ownership and an infusion of strategic capital. We continue to have an aggressive appetite for acquisitions."

New Castle Hotels, which is headquartered here, will be the operator of the hotel during the renovation and later upon conversion to a Courtyard by Marriott flagged facility. The firm earlier this month opened its first hotel in Westchester County, NY--the SpringHill Suites Tarrytown-Greenburgh, a 145-room all-suites hotel located near the Tappan Zee Bridge.