WASHINGTON, Jan. 16 /PRNewswire/ — Officials of Crescent Hotels & Resorts, a rapidly growing hotel and resort management and ownership company, today announced it has acquired the Sheraton Milwaukee Brookfield and has signed binding purchase agreements to acquire two additional first-class, full-service hotels. Upon consummation of the three separate transactions, the three properties combined will undergo approximately $18 million in renovations, with property upgrades being managed by Crescent’s management division. In addition, the company said it has signed two new third-party management contracts, including its first condo-hotel project.
“We have committed more than $150 million in acquisition investment since we announced the formation of our acquisition fund and purchased our first property several months ago,” said Michael George, Crescent president and CEO. “All four properties fit our acquisition profile of 200- to 500-room, upper, upscale hotels located in top U.S. markets, as well as resorts. We continue to have a very active pipeline and a robust appetite for acquisitions, joint ventures and third-party management contracts. We have added significant depth to our senior management team and are well positioned to accommodate our expected significant growth over the next 18 to 24 months.”
The 389-room Sheraton Milwaukee Brookfield is located adjacent to the Brookfield Shopping Mall at Interstate 94 and Moorland Road. With more than 18,000 square feet of flexible meeting space, the Sheraton Milwaukee Brookfield can accommodate groups of up to 800 guests. The hotel will undergo a $10 million capital improvement program that includes significant upgrades to the exterior, as well as updating the rooms and public space. The project will be completed in stages to be the least disruptive to guests and is expected to be completed in the third quarter of 2007. “Our renovation program will give the hotel an attractive look and feel, as well as significantly enhance its position in the market, focusing on corporate, leisure and the social segments,” George noted.
The two properties under purchase agreements include a 200-plus room Sheraton Hotel in the Washington, D.C. area, the sale of which is expected to be completed in early February. It will undergo a $5 million renovation program. The second property is a 200-plus suite Embassy Suites in the Mid- Atlantic region that will undertake a four-month, $3 million renovation. The transaction is expected to be consummated by the end of February.
The two management contracts are:
* The Avalon Suite Hotel, Biloxi, Miss. — The 160-unit condominium hotel
is located in the heart of the action on the oceanfront and just blocks
from the city’s casino district. Currently under construction, the
property is scheduled to open in the 2008 first quarter. “This is our
first condo-hotel, and discussions are under way pertaining to
additional condo hotels in Florida and Nevada in 2007,” he said.
* Holiday Inn Express Hotel & Suites-Six Flags/West Boerne — Located
outside of San Antonio, Texas, the property features 62 rooms, including
21 suites. The hotel is convenient to San Antonio attractions, major
amusement parks, championship golf courses and outlet mall shopping.
“This is our fifth Texas hotel, which along with a number of other
properties in the region will allow us to take advantage of economies of
scale,” George commented.
“We have a strong and growing portfolio and expect to add a significant number of properties in 2007 through acquisitions, joint ventures and third- party management contracts,” he said. “Our fund is aggressively seeking additional properties, and we are actively negotiating a number of transactions. Our third-party pipeline also is quite active. We have established a strong operating track record, and we are building solid relationships with our existing owners, as well as actively networking with other hotel owners and investment groups.”
About Crescent Hotels & Resorts
Headquartered in Fairfax, Va., outside of Washington, D.C., Crescent Hotels & Resorts owns and co-invests in hotel real estate, and is an independent, third-party operator of hotels and resorts. The company currently owns or operates approximately 40 upscale and mid-market hotels and resorts aggregating approximately 6,000 rooms in 18 states. The company’s portfolio encompasses properties in the resort, full-service, convention and premium limited-service segments under nearly 15 hotel flags, including the leading brands of Marriott, Hilton, Sheraton, InterContinental, Embassy Suites, Choice and Wyndham Hotel Group, as well as independent hotels and resorts. Additional information about Crescent Hotel & Resorts may be found on the company’s Web site http://www.chrco.com/.