In back-to-back press releases, the Dallas-based REIT says the offering's underwriters are holding a 30-day option to buy another 750,000 common stock shares to cover over-allotments. Each share is priced at $10.25. The REIT projects is will earn $49.3 million in proceeds, earmarking the cash for general corporate purposes and possible acquisitions from its $500-million pipeline of non-binding letters of intent and conditional commitments for hotel investments.
Wachovia Securities and Friedman Billings Ramsey are the book-running managers. A.G. Edwards, Legg Mason Wood Walker Inc. and Stifel, Nicolaus & Co. Inc. are co-managers.
Just 14 days ago, the REIT closed a $250-million, 21-hotel acquisition from affiliates of the Fisher Brothers, Gordon Getty Trust and George Soros. Also this month, it paid $18.2 million for the 157-room Hilton Santa Fe in the historic downtown.
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