A young REIT that was established late last year, Highland iswasting no time in building up its eight-hotel portfolio, whichspans five states. The funds from the loan give the companyadditional wiggle room while it continues to purchase upscalefull-service, premium limited-service, and extended stay propertiesacross the US. "This type of financing is aligned with our strategyto prudently leverage our company as we continue to acquire assetswith the proceeds from our IPO," says Highland executive vicepresident and CFO Douglas W. Vicari.

The three hotels Highland put up as collateral for the loan givea solid indication of the type of hotels the company is probablylooking to snap up in the near future. One of the company's firstpurchases was the 250-room Portsmouth Renaissance property, forwhich it paid about $71 million in December. And in January,Highland snapped up the Hyatt Regency for $50 million, followedjust days later by the $22-million purchase of the Hilton GardenInn airport hotel.