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| Mark Laport |
RALEIGH, NN - - Concord Hospitality Enterprises announced
the sale of a portfolio of 13 premium-branded, select-service hotels to
companies owned by a global investment fund for approximately $240 million in
an all-cash transaction.
Concord will continue to operate the hotels under a
long-term management agreement. The
portfolio is comprised of a total of 1650 rooms representing 11 Marriott and
two Hilton-branded hotels.
"This sale is a continuation of our on-going plan to
strategically sell stabilized assets while retaining management,” said Mark
Laport, president and CEO of Concord Hospitality.
“This gives our investors an attractive return on their
development investment while providing long-term, sustainable growth opportunities
for the companies that buy these assets.”
“With the exception of one hotel, the average age of the
hotels is under five years old, and all were developed, rebranded or
substantially updated by Concord, so they bring with them our reputation for
quality construction and adding value through best in class sales and
operations management," Laport said.
“Each hotel is in excellent physical condition, and we are working
closely with the brands to implement any necessary Product Improvement Plans
(PIP) to ensure the hotels sustain strong RevPAR premiums well into the
future.”
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| Mark Elliott |
Mark Elliott of Hodges Ward Elliott was the lead
broker in the transaction.
“Concord remains very committed to developing in markets
where we see long-term potential,” Laport said.
“We currently have 10 hotels
under construction at a cost of approximately $440 million with financing in
place and expect to open all of them over the next 18 months. We have an
additional eight premium branded hotels well along the development process at a
cost of approximately $400 million."
Laport also asserted Concord's continued commitment to developing LEED
Certified hotels, with this wave of construction.
According to Laport, Concord will continue to focus its acquisition and
development efforts in locations with high or growing concentrations of
medical, educational, banking and technology industries, while growing its
third party management sector through retained management of sold assets and
strategic alliances with other ownership groups.
As the
company expands, it continues to win awards for excellence, recently garnering
21 Marriott performance awards for excellence in operations, development and
community support.
For a complete copy of the company’s news release, please
contact:
Lauralee Dobbins/Chris Daly
Daly Gray, Inc.
703-435-6293
