Thursday, January 22, 2009

HFF Closes $94.5M 'A' Note Sale for Bank of America

CHICAGO, IL –HFF (Holliday Fenoglio Fowler, L.P.) announced the sale of an ‘A’ note on behalf of Bank of America.

HFF managing director Bill Mitchell (top left photo) and senior managing directors Stuart Salins in Chicago and Whitney Wilcox in New York represented the seller in the transaction.

The ‘A’ note, which was sold to a privately-held REIT, has a coupon of 5.60% and is a senior participation in a $104.8 million first lien loan originated in early 2007.

The loan is secured by a 188,458-square-foot Class A office building in San Diego, California. (top right photo)

HFF (NYSE: HF) operates out of 18 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry.

HFF offers clients a fully integrated national capital markets platform including debt placement, investment sales, structured finance, private equity, loan sales and commercial loan servicing.

WILLIAM G. MITCHELL, HFF Managing Director, (312) 980-3607,
STUART M. SALINS, HFF Senior Managing Director, (312) 528-3678,
WHITNEY H. WILCOX, HFF Senior Managing Director, (212) 242-2425,
KRISTEN M. MURPHY, HFF Associate Director, Marketing, (713) 852-3500,

HFF secures debt and equity financing for $46M to-be-built luxury multifamily community in Atlanta

ATLANTA, GA – The Atlanta office of HFF (Holliday Fenoglio Fowler, L.P.) has arranged debt and equity for the development of Glenwood Avenue Apartments, a 325-unit, five-story luxury multifamily community in Atlanta, Georgia.

Working on behalf of Capital Thirty-Three, HFF director Michael Cale (bottom right photo) placed a $34.39 million construction loan with Regions Bank as well as joint venture equity with institutional investors advised by J.P. Morgan Asset Management – Global Real Assets.

Construction on the five-acre site, which will have 297,600 square feet of rentable space, is expected to commence in summer 2009 with an anticipated completion date of winter 2010.

The units will be certified by the Leadership in Energy and Environmental Design (LEED), one of the first apartment communities in Georgia to receive this distinction.

Apartments will range in size from 650-square-foot one-bedrooms to 906-square-foot two-bedrooms and will include luxury amenities such as high-end countertops, kitchens with stainless steel appliances, nine-foot ceilings, Jacuzzi bathtubs, patios and balconies. “Green” features include energy-saving windows and appliances, low-water consumption plumbing and an eco-friendly roofing system.

“The borrower’s experience in the submarket paired with its ability to secure highly desirable, core land parcels has afforded them a unique opportunity to deliver an exceptional product to a submarket that is quickly expanding due to its proximity to downtown, midtown and other highly traversed areas within metro Atlanta,” said Cale.

“Development opportunities are still possible if you’re offering the right product, in the right place and at the right price,” added Colin Cavill, a Principal Partner at Capital 33.


MICHAEL A. CALE, HFF Director (404) 832-8460,
KRISTEN M. MURPHY HFF Associate Director, Marketing (713) 852-3500,

Wyndham Hotel Group Grows in China With Seven New Hotels

HONG KONG, Jan. 22, 2009– Wyndham Hotel Group today announced that it continues to solidify its position as the leading U.S. hotel company in China with last month’s opening of seven hotels, three of which are all-new construction properties, under its Ramada®, Howard Johnson® and Super 8® brands.

Among the new hotels open are the five-star, 1162-room Howard Johnson Resort Sanya Bay (middle right photo) on Hainan Island, one of China’s premier resort destinations; the four-star, city-center Ramada Wuxi hotel (top left photo); and the Super 8 Hotel Shanghai Fen Ye Hong Qiao (bottom left photo) located near the Shanghai Zoo, Guangda Exhibition Centre and Qibao Old Town.

“Despite the economic climate and the devastating earthquake in May, Wyndham Hotel Group continues to be a leader in China,” said Tom Monahan, (bottom right photo) executive vice president of international development for Wyndham Hotel Group International.

“The addition of these impressive properties further strengthens our position in the country with current and prospective owners and developers.”

The Hotel Group currently has over 170 properties in the country operating under the Ramada, Super 8 and Howard Johnson brand names.

Wyndham Hotel Group, one of three principal components of Wyndham Worldwide Corporation (NYSE: WYN), encompasses nearly 7,000 hotels representing approximately 581,000 rooms in 65 countries under the Wyndham®, Ramada®, Days Inn®, Super 8®, Wingate® by Wyndham, Baymont Inn & Suites®, Microtel Inns and Suites®, Hawthorn Suites®, Howard Johnson®, Travelodge®, Knights Inn® and AmeriHost Inn® brands.

All hotels are owned individually and operated independently or by Wyndham Hotel Management. Wyndham Hotel Group is based in Parsippany, N.J. For additional information or to make a reservation, visit


Christine Da Silva
Director, Media Relations
Wyndham Hotel Group
1 Sylvan Way
Parsippany, NJ 07054

+1 (973) 753-6590

Rick Rogovin Joins Dow Hotel Team; Company Converts San Antonio Radisson to Hilton

SEATTLE, WA, Jan. 22, 2009 -- The Dow Hotel Company, LLC, a hotel ownership investment and management company, today announced that Rick Rogovin, (top right photo) an executive with more than 20 years of institutional hotel investment experience, has joined the company as vice president of business development.

In the newly created position, Rogovin will be responsible for reaching out to institutional investors, limited partnerships, individual investors, brokers and others to form strategic alliances, negotiate partnerships, and forge relationships to significantly expand Dow’s owned and joint-venture hotel portfolio, as well as acquire and develop third-party management contracts.

He will work closely with Mark Rosinsky, (middle right photo) DHC’s s senior vice president of investments.

“We believe the next 18 to 24 months will create significant growth opportunities for our company in all three of our growth strategies: acquisitions, joint ventures and third-party hotel management,” said Murray Dow, (middle left photo) president of The Dow Hotel Company.

“Rick adds substantial bench strength in finance, investment, real estate and corporate leadership that will be particularly critical in the current economic environment,. His high professional standards fit our culture perfectly.”

Rogovin is a Certified Hotel Administrator and holds a Bachelor of Technology – Hotel Administration degree from New York City Technical College.

The company’s portfolio of owned and managed properties consists of institutional-grade hotels under such brands as Marriott, Hilton, Embassy Suites, Sheraton, and Crowne Plaza. The company aggressively seeks to acquire, co-invest with joint venture partners and/or manage mid- to large-size, first-class, full-service hotels, especially those with extensive food and beverage capabilities.

San Antonio Radisson Converts to Hilton San Antonio Hill Country Hotel & Spa; $6 Million Renovation Planned

SAN ANTONIO, TX/SEATTLE, WA.—The Dow Hotel Company (DHC), a hotel owner/investor and management company, has converted its 227-room hotel in San Antonio, Texas, to the Hilton San Antonio Hill Country Hotel & Spa at 9800 Westover Hills Blvd. (bottom left photo)

The hotel will undergo a $6 million renovation over the next 12 months to upgrade the facility, its amenities and services. The property is owned by a joint venture between Prudential Insurance Company of America and DHC, which also operates the property.

“We look at every property we operate to maximize profits in all phases of the economic cycle,” said Murray Dow, president of The Dow Hotel Company.
“With the upgrades and brand change, we will be able to offer our guests the best in upscale amenities and benefits, which will lead to higher satisfaction and allow us to attract a wide cross-section of both business and leisure travelers.
" We have in-depth experience working with the Hilton Family of brands and believe this change will further enhance our portfolio of first-class, full-service hotels.”

“This is another great hotel/spa to add to our growing collection,” said Jeff Diskin, (bottom right photo) senior vice president – brand management, Hilton Hotels & Resorts.
“This will be the fifth Hilton Family-branded hotel operated by Dow, and we expect the same success that they have enjoyed at our four other branded properties.”

Contact: Jerry Daly, Chris Daly. Phone: (703) 435-6293,

Interstate Hotels & Resorts Implements Cost-savings Program

Expected to Reduce Corporate Overhead by $13 Million

ARLINGTON, VA, Jan. 22, 2009—Interstate Hotels & Resorts (NYSE: IHR), a leading hotel real estate investor and the nation’s largest independent management company, today announced that it has completed implementation of a cost-savings program that is expected to reduce 2009 corporate overhead by $13 million.

The plan was developed to help offset expected declining revenues in the current difficult economic climate.

“We are in the midst of one of the most challenging periods the hotel industry has ever experienced,” said Thomas F. Hewitt, (top right photo) chief executive officer.

“We had anticipated the industry downturn last spring and made appropriate adjustments to our business strategies during the course of 2008. With a negative industry RevPAR outlook for 2009 and persistent forecasts of a weak national economy, we believe it is prudent to take these additional steps.”

Following a three-year hotel industry bull market that produced consistently rising RevPAR and profits, the hotel industry experienced a RevPAR decline in the third quarter of 2008, a trend that may continue until the second quarter of 2010, according to the consulting firm, PKF Hospitality Research.

“The hotel industry has always closely paralleled the broader economy, and we have been seeing the kind of occupancy declines at most of our properties that accompany a recession,” Hewitt said. “We expect negative travel trends to continue for the foreseeable future, a situation that prompted us to take these additional actions.”

The company has undertaken the following measures:

· Eliminating 45 corporate positions,
· Pay reductions of up to 10 percent for senior management,
· Placing a freeze on merit increases for all corporate employees,
· Suspending the company match for 401(K) and non-qualified deferred compensation plans for 2009,
· Restructuring the corporate bonus plan,
· A 25 percent reduction in the annual fee for the company’s board of directors, and
· Reducing all other corporate expenses, including advertising, travel, training, employee relations, etc.

The company expects all of these efforts combined will result in savings of at least $13 million in corporate overhead costs as compared to 2008.

“These steps reflect our commitment to reducing costs fairly and across all levels of the company,” Hewitt added.
“We remain committed to delivering the highest quality service at our properties, but we also are focused on the bottom line of our hotels. As a result, our properties have undertaken many of the same initiatives.
"Each hotel has a profit maximization plan and multiple contingency plans in place to respond quickly to economic and market conditions. We believe that these additional measures place us in a much stronger position to successfully ride out this downturn and emerge in a stronger competitive position when the economy recovers.”

For more information about Interstate Hotels & Resorts, visit the company’s Web site:

Contact: Bruce Riggins, Chief Financial Officer, (703) 387-3344