Search
 

MeriStar Moves Control of its Hotel Portfolio to Subsidiary

WASHINGTON, DC-MeriStar Hospitality Corp. brings its portfolio of 112 full-service hotels under the control of its management arm, MeriStar Hotels & Resorts, with the acquisition of four hotel leases from Prime Hospitality. The changeover was a no-cost transaction.

By Barbra Murray | Updated on December 04, 2001

WASHINGTON, DC-Thanks to the REIT Modernization Act–legislation that allows REITs to convert hotel leases to management contracts via the Taxable REIT Subsidiary system–MeriStar Hospitality Corporation has brought its entire portfolio of upscale hotels under the management of subsidiary MeriStar Hotels & Resorts. The milestone comes with the company’s no-cost acquisition of leases from Prime Hospitality on the final four of MeriStar’s 112 hotels.

The properties concerned are the Crowne Plaza Las Vegas, Las Vegas’s St. Tropez, Oregon’s Crowne Plaza Lake Oswego and Meridien, CT’s Ramada Plaza Hotel. “[The arrangement] more closely aligns ownership and management,” MeriStar Hospitality and MeriStar Hotels & Resorts Chairman/CEO Paul Whetsell says in a statement. “In addition to a more focused approach, we expect to benefit from MeriStar Hotels & Resorts’ size and scope in terms of operating synergies, purchasing and cross-marketing.” MeriStar began converting its leases at the beginning of the year. At one time, Prime held the leases and managed eight MeriStar hotel properties.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.