Highland Acquires Silversmith Hotel in Chicago
MCLEAN, VA, February 23, 2007. Highland Hospitality Corporation (NYSE:HIH), a lodging real estate investment trust, or REIT, announced today that it has acquired the 143-room Silversmith Hotel located in downtown Chicago, Illinois for a purchase price of $34.5 million, plus customary closing costs, or approximately $241,000 per key. The Company has selected Crestline Hotels & Resorts, Inc. to manage the property as an independent hotel.
James L. Francis, President and CEO stated, "We are pleased to announce the closing of the Silversmith Hotel acquisition in one of the top five markets in the United States. The Chicago market is predicted to have robust growth in the foreseeable future and we believe the Silversmith has the potential to outperform from our repositioning of the asset as a four-star boutique property."
The Silversmith Hotel (formerly the Crowne Plaza Chicago-Silversmith Hotel) is a ten-story National Historic Landmark building located at 10 South Wabash Street in downtown Chicago, approximately one block west of Michigan Avenue and Millennium Park, and four blocks south of the Chicago River. This hotel is located in the financial and theater district and is adjacent to the State Street retail corridor.
The Company plans to invest an additional $2.5 million for guestroom upgrades and the addition of meeting space.
Highland Hospitality Corporation is a self-advised lodging real estate investment trust, or REIT, focused on hotel investments in the United States. With the acquisition of the Silversmith Hotel, the Company now owns 27 hotel properties with an aggregate of 8,382 rooms in 14 states and the District of Columbia. Additional information can be found on the Company's website at www.highlandhospitality.com.
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.
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