Highland to Acquire Ritz-Carlton Atlanta
ATLANTA, GA, September 19, 2006. Highland Hospitality Corporation (NYSE:HIH) announced today that it has entered into a definitive agreement to acquire the 444-room Ritz-Carlton Atlanta Downtown hotel located in Atlanta, Georgia for a purchase price of $79.5 million, plus customary closing costs, or approximately $179,000 per key.
The Company expects to close this transaction within the next three weeks and will enter into a long-term management contract with the Ritz-Carlton Hotel Company L.L.C. to continue to operate the hotel under the Ritz-Carlton flag.
James L. Francis, Highland's President and CEO, stated, "We are excited about our planned acquisition of the Ritz-Carlton Atlanta Downtown hotel, which represents an opportunistic purchase of an urban Ritz-Carlton for a total investment of under $200,000 per key, which includes anticipated guest room upgrades. We believe that recently announced downtown office relocations and the addition of world-class attractions to downtown will continue to improve the future demand outlook for this area and provide growth opportunities for the hotel going forward."
The Ritz-Carlton Atlanta Downtown hotel, located at 181 Peachtree Street, is a full-service hotel with 444 guestrooms, including 22 suites and two Club Level floors. The property is the only AAA 5-Diamond rated hotel in downtown Atlanta and only one of three AAA 5-Diamond rated hotels in Atlanta. The hotel includes a 25-story guestroom tower, the AAA 4-Diamond Atlanta Grill restaurant and lounge, a gift shop, fitness area and attached parking garage. Ballroom and meeting room spaces total approximately 19,000 square feet, including a 6,500 square foot grand ballroom.
The hotel is situated at the corner of Peachtree and Ellis Streets and is physically connected to the 1.2 million square foot 50-story office building known as 191 Peachtree. The property is located directly across the street from the Peachtree Plaza MARTA underground rail station, providing for direct access to Hartsfield International Airport and other points throughout the Atlanta metropolitan area.
Highland Hospitality Corporation is a self-advised lodging real estate investment trust, or REIT, focused on hotel investments in the United States. The Company owns 25 hotel properties with an aggregate of 7,795 rooms in 13 states and the District of Columbia.