$21M Takes 150-Key Staybridge Suites

IHG will still have a hand in the property, which had just opened for business this past February. According to a statement released by a spokesman for the Newton, MA-based HPT, the hotel was added "to a long-term management contract with a subsidiary of Intercontinental Hotel Group, which includes 30 additional Staybridge Suites hotels. The term of this contract was extended to 2031."

Under the terms of the ongoing agreement, HPT's minimum annual incremental return for the property, which is guaranteed by IHG, will initially be $1.7 million a year until April 2007. At that point, it will increase to $1.8 million per year. HPT "may also receive a percentage of gross revenue increases at this hotel starting in 2009 and the net cash flow after payment of management fees to IHG," according to the spokesman.

The five-story extended-stay property went under construction in late 2004 leading up to its opening earlier this year. It's located within the Morris Corporate Center, a 2.2-million-sf class A office campus near Interstate 80 owned primarily by the locally based SJP Properties. The hotel property itself, beside its 150 guest suites, has a library, business and fitness centers, an indoor pool and 1,000 sf of meeting space.

For HPT, the hotel was acquired free and clear of all mortgage debt, according to information released by the hotel REIT. Funding for the acquisition came from a draw on the company's unsecured revolving bank credit facility. With the acquisition, HPT now owns some 310 hotels in 38 states, Puerto Rico and Canada.