In a press release this morning, the Dallas-based Ashford says the team is projecting that the transaction will be earnings neutral to the company. The reworked agreement does not impact the 544-room Capital Hilton at 1001 16th St. NW in Washington, DC and 394-room Hilton La Jolla Torrey Pines at 10950 N. Torrey Pines Rd. in La Jolla, CA, which they hold under a 75-25% split with the local REIT as the majority owner. Ashford acquired the 13 hotels, with Hilton as the management company, in its $2.4-billion buyout of Orlando-based CNL Hotels & Resorts Inc. in April.
"With full control of the hotels, we will be able to more efficiently direct the operational, financing, capital expenditure and sale strategies," Monty J. Bennett, Ashford's president and CEO, says in the press release. In addition, he says the revised agreement "facilitates a reduction in our inherited overexposure to the Crystal City-Washington, DC market, where we have our highest concentration of hotel assets." Shortly after the CNL buyout, Ashford was considering putting 10 hotels, totaling 3,553 keys, for resale.
In divvying the portfolio,Under the new agreement, the Beverly Hills, CA-headquartered Hilton gets the 419-room Hilton Miami Airport at 5101 Blue Lagoon Dr. in Miami and 475-key Doubletree Crystal City at 300 Army Navy Dr. in Arlington, VA.
Ashford's package is the 482-room Hilton Dallas Lincoln Centre at 5410 LBJ Fwy. in North Dallas; 338-room Hilton Tucson El Conquistador at 10000 N. Oracle Rd. in Tucson; 435-room Hilton Rye Town at 699 Westchester Ave. in Rye Brook, NY; 163-room Embassy Suites Orlando Airport at 5835 T.G. Lee Blvd. in Orlando; 241-room Embassy Suites Santa Clara at 901 E. Calaveras Blvd. in Milpitas, CA; 267-room Embassy Suites Crystal City at 1300 Jefferson Davis Hwy. in Arlington, VA; 224-room Hilton Suites Auburn Hills at 2300 Featherstone Dr. in Auburn Hills, MI; 474-room Hilton Costa Mesa at 3050 Bristol St. in Costa Mesa, CA; and 276-room Embassy Suites Portland at 319 SW Pine St. in Portland, OR.
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