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[IMGCAP(1)]WYNNEWOOD, PA-In a joint venture deal National Hospitality Holdings LLC and CMS Cos. paid an undisclosed amount for two hotels, one in Pittsburgh and another in Atlanta. NHH will spend $12 million on renovations for both hotels, take over operation duties and work under a long-term license agreement with Hilton Hotels Corp.

“This is a straight down the fairway value-add investment deal,” John DePaul, managing principal and CEO of NHH tells GlobeSt.com. “We’re buying two hotels in good locations that are in need of renovation and new management to improve their profitability and position in the marketplace.”

[IMGCAP(2)]While the price paid for the hotels wasn’t disclosed, DePaul says “we are privately held and do not wish to disclose that information. Let’s just say it was significantly below the placement costs inclusive of all transaction costs including closing costs and renovations.” With the economy down and the dollar’s value shrinking, the joint venture had a plan to invest in the struggling market.

[IMGCAP(3)]“With our existing portfolio of hotels, we’re seeing–as others are seeing in the industry – a downturn in revenue that we expect that to continue to the middle of ’09,” says DePaul. “As revenues decline and profitability decline, valuations also decline. We see that as an opportunity to buy back into a cyclical market.”

The Embassy Suites Pittsburgh-International Airport Hotel is the only Embassy Suites Hotel in the greater Pittsburgh area and features 223 rooms and 13,650 sf of function space. The hotel is located in an office park less than five miles from Pittsburgh International Airport and 15 miles from downtown Pittsburgh. The Doubletree Hotel Atlanta/Roswell offers 172 rooms, a “Southern mansion-style” facade and 12,000 sf of function space.

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