Crestline Capital Corp. bought the Residence Inn portfolio back in 1999 in an "opportunistic" acquisition, according to Crestline executive vice president and chief financial officer James L. Francis. "We were able to purchase 77% of the portfolio at extremely attractive pricing. Over the last two years we have increased our ownership to 100%," he said.
The hotels in the portfolio are scattered across the country: there are three in California, two in Texas, and one each in Alabama, Connecticut, Georgia, Massachusetts and Ohio, according to Crestline Capital spokeswoman Heather Scanlon.
According to Crestline president, chairman and CEO Bruce D. Wardinski, the sale is part of a hotel management growth strategy. "Since Marriott International manages these hotels, a sale of these assets is consistent with our strategy of investing in hotels where Crestline Hotels & Resorts is the manager," he says. "With the attractive returns we are able to realize and the substantial capital that will be unlocked, this is an excellent transaction for Crestline."
Francis says the net proceeds from the sale to Apple, along with proceeds from the sale announced in January of Crestline's full-service hotel leases to Host Marriott, gives Crestline a "significant cash position … As we previously announced, we are exploring all strategic options available for efficiently redeploying our capital."
Crestline Capital Corporation is the parent company of Crestline Hotels & Resorts and owns senior living community and hotel portfolio. Crestline Hotels & Resorts manages and leases 37 hotels, resorts and conference and convention centers with more than 7,000 rooms in 13 states and the District of Columbia. Crestline Hotels & Resorts manages properties independently and under the Marriott, Hyatt, Hilton, Sheraton, Renaissance and Crowne Plaza brands.
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