Providence, RI-based Procaccianti Group bought the 398-room Marriott at 50 N. Martingale Rd. last year for $23.9 million. Strategic Hotels and Resorts netted nearly $54 million for the 333-room Embassy Suites in Lake Buena Vista, FL. Those sales were part of a strategy to tilt the REIT's portfolio further toward the luxury end.
Earnings before interest, taxes, depreciation and amortization were up more than 18% last year at the Lincolnshire property, to $6.3 million, with revenue per available room improving 5% to $81.14. "It's looking like it's having a good year," says president and chief executive officer Laurence S. Geller during his company's earnings conference call Wednesday. "It's not a core asset, and it's not an asset we intend to keep for a long time."
Geller suggests the hotel could change hands before capital improvements are needed, but indicates that may not be until 2007, at the earliest. "It's unlikely this will be a 2006 disposition candidate."
The 696-room Hyatt Regency Phoenix generated $8.9 million in EBIDTA last year, and is considered the weakest performer in Strategic Hotels and Resorts seven-property, 3,040-room US portfolio. At the other end of the spectrum, the InterContinental Chicago generated $18.3 million in EBIDTA.
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