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WASHINGTON, DC-Thanks to the REIT Modernization Act–legislation that allows REITs to convert hotel leases to management contracts via the Taxable REIT Subsidiary system–MeriStar Hospitality Corporation has brought its entire portfolio of upscale hotels under the management of subsidiary MeriStar Hotels & Resorts. The milestone comes with the company’s no-cost acquisition of leases from Prime Hospitality on the final four of MeriStar’s 112 hotels.

The properties concerned are the Crowne Plaza Las Vegas, Las Vegas’s St. Tropez, Oregon’s Crowne Plaza Lake Oswego and Meridien, CT’s Ramada Plaza Hotel. “[The arrangement] more closely aligns ownership and management,” MeriStar Hospitality and MeriStar Hotels & Resorts Chairman/CEO Paul Whetsell says in a statement. “In addition to a more focused approach, we expect to benefit from MeriStar Hotels & Resorts’ size and scope in terms of operating synergies, purchasing and cross-marketing.” MeriStar began converting its leases at the beginning of the year. At one time, Prime held the leases and managed eight MeriStar hotel properties.

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