X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ARLINGTON HEIGHTS, IL-Arlington Hospitality, Inc. plans to sell as many as 30 of its 71 hotel properties through 2005, including at least one-third of its AmeriHost Inns it owns and operates throughout the US. The company owns 62 AmeriHost Inns, but plans to sell 20 to 25 of them, in addition to six others flying under different flags.

Atlanta-based hotel brokerage firm Thompson Calhoun Fair has been hired to sell the properties in two tranches–with half closing in the coming year and the other half by 2005.

The sales are on top of the five closed by Arlington Hospitality and an equal number that are pending, according to the company. They also are expected to generate at least $11.5 million in cash, according to CFO Jim Dale, as well as free up $1.6 million a year in cash flow.

However, the sales also are being done to shift into joint venture projects involving development of AmeriHost Inns with 80 to 90 rooms in larger markets, according to the company. By 2005, Arlington Hospitality hopes to build 10 to 15 new hotels a year with joint venture partners. Before construction starts, though, Arlington Hospitality officials expect to have a portfolio of about 30 AmeriHost Inns and two others.

“We are selling these hotels to redeploy our assets into activities that will earn higher returns, such as hotel development for third parties and joint ventures,” says president and CEO Jerry H. Herman.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.