Highland Acquiring Renaissance Nashville for $77 mil
Approximately $114,000 per Key
MCLEAN, VA, February 17, 2006. Highland Hospitality Corporation (NYSE:HIH), a lodging real estate investment trust, or REIT, announced today the signing of a definitive agreement to acquire the 673-room Renaissance Nashville hotel in Nashville, Tennessee. The purchase price for the hotel is $77 million, or approximately $114,000 per key. The Company intends to close on this acquisition within the next thirty days following approval of the sale by the ground lessor, and will enter into a long-term management contract with an affiliate of Marriott International, Inc. (NYSE:MAR) to operate the hotel under the Renaissance flag. Following the acquisition, Highland plans to invest approximately $6.5 million in a two-year property improvement plan at the hotel.
James L. Francis, Highland's President and CEO, stated, "We are pleased to announce our impending acquisition of the Renaissance Nashville hotel. This property is centrally located in Nashville's business district, and within walking distance to several of the city's attractions. We believe our investment in this hotel will provide very attractive stabilized returns for our shareholders that will continue to benefit from a growing Nashville market with high barriers-to-entry."
Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda,Maryland, USA, with more than 4,200 properties in 80 countries and territories. Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, BVlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 50 million members. For more information or reservations, please visit our website at 
