Interstate acquired the three properties from affiliates of theBlackstone Group LP in an unusual structure: Interstate Hotels willsolely own the Sheraton Columbia, a 288-room asset in the Marylandsubmarket. The firm paid $46.5 million for the property, a sum thatis part of the total $118 million the JV paid for the threeproperties. A $12-million renovation program is expected to befinished by the end of next year.
The other two hotels, the 321-room Hilton Seelbach Louisville inKentucky and the 226-room Crowne Plaza Madison in Wisconsin, wereacquired through an 85%-15% JV with Investcorp International'sUS-based Real Estate Group. The minority partner, Interstateinvested approximately $4.7 million for its equity interest inthese properties, which will continue to be operated by Interstateunder new management agreements.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
