Hospitality Properties Trust Acquires Wisconsin’s Crowne Plaza Milwaukee West for $30 Million

USA, Newton, Massachusetts. May 20, 2019

Hospitality Properties Trust (Nasdaq: HPT) today announced it has completed the purchase of the 198-room Crowne Plaza Milwaukee West in Milwaukee, WI for $30.0 million, or approximately $151,500 per key. The hotel will be added to HPT's existing agreement with Intercontinental Hotels Group.

"The Crowne Plaza Milwaukee West is ideally located in an economically vibrant suburban community just west of downtown," said John Murray, Hospitality Properties Trust's President and Chief Executive Officer. "Built in 2008, this full service hotel is supported by strong demand generators from the area's healthcare, technology and industrial sectors and surrounded by some of Milwaukee's largest employers. Today's acquisition supports our relationship driven strategy to invest in hotels located in diverse markets with steady demand drivers."

Hospitality Properties Trust is a real estate investment trust, or REIT, which owns a diverse portfolio of hotels and travel centers located in 45 states, Washington, DC, Puerto Rico and Canada. HPT's properties are operated under long term management or lease agreements. HPT is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, Massachusetts.

WARNING REGARDING FORWARD LOOKING STATEMENTS

This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward looking statements are based upon HPT's present beliefs and expectations, but these statements and the implications of these statements are not guaranteed to occur and may not occur for various reasons, some of which are beyond HPT's control. For example;

This press release states that the Crowne Plaza Milwaukee West is ideally located in and economically vibrant suburban community just west of downtown Milwaukee, that the area is supported by strong demand generators and that it is surrounded by some of Milwaukee's largest employers. A possible implication from this statement is that the market dynamics of this area will remain strong in the future. In fact, the market dynamics of this area may not remain strong and demand by various businesses surrounding the hotel may weaken. In addition, Mr. Murray states that this acquisition supports HPT's relationship driven strategy to invest in hotels located in diverse markets with steady demand drivers. This may imply that HPT will successfully engage with its operators to invest in additional hotels located in diverse markets with steady demand drivers. However, HPT and its operators may be unable to identify properties that HPT wants to acquire and HPT may fail to reach agreement with the sellers and HPT's operators and complete the purchases. Further, any properties that HPT may acquire may not generate returns or rents that exceed its operating and capital costs.

For these reasons, among others, investors are cautioned not to place undue reliance upon any forward looking statements in this press release.

Subscribe to our newsletter
for more Hotel Newswire articles

Related News

Choose a Social Network!

The social network you are looking for is not available.

Close
Coming up in October 2019...

Revenue Management: Focus On Profit

Revenue Management is still a relatively new profession within hotel operations and as such, it continues to evolve. One significant trend in this area is a shift away from using revenue as the foundation to generate key performance indicators (KPIs) and to instead place the emphasis on profit. Traditionally, revenue managers have relied on total revenue per available room (TrevPAR) and revenue per available room (RevPAR) as the basis of their KPIs. Now, some revenue managers are using gross operating profit per available room (GOPPAR) as their primary KPI. This puts profit at the center of revenue management strategy, and managers are increasingly searching for new ways to increase the profitability of their hotels. Return on Investment is the objective of any hotel investment, so it is only logical that profitability and ROI will be emphasized going forward. Another trend is an expanded focus on direct hotel bookings. Revenue managers know that one way to increase profitability is to steer guests away from online travel agencies (OTAs) and book directly with the hotel. This tactic also reinforces brand identity and loyalty, and encourages repeat business. In addition, it provides a valuable platform to market the hotel directly to the customer, and to upsell room upgrades or other services to them. Another trend for revenue managers involves automation in their software programs. Revenue management systems with automation are far more desirable than those without it. Automating data entry and logistics increases efficiency, allowing managers to spend more time on formulating strategy. As a bonus, an automated system helps with aggregating and interpreting data. The October issue of the Hotel Business Review will address these developments and document how some leading hotels are executing their revenue management strategies.