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Highland Acquires $85M Hotel

PHOENIX-Lodging REIT Highland Hospitality Corporation purchases the Pointe Hilton Tapatio Cliffs Resort & Lookout Mountain Golf Club for $85 million. Highland and Hilton Hotels Corporation will co-manage the resort.

By Amanda Paxson | Updated on March 19, 2006

PHOENIX-The 585-suite Pointe Hilton Tapatio Cliffs Resort & Lookout Mountain Golf Club has been acquired by Virginia-based Highland Hospitality Corporation. The $85-million purchase from Hilton Hotels Corp., marks the lodging REIT’s first acquisition in Arizona.Hilton and Highland have entered into a long-term management agreement to run the resort and keep the Hilton name and branding. The resort, which was sold for approximately $145,300 a room, is located at 1111 N. 7th St. Amenities include a spa, an 18-hole golf course, fitness center and Jeep Tours.Highland owns 23 hotel properties consisting of more than 6,000 rooms in 11 states and Mexico. The properties are operated by hotel chains such as Marriott International, Sheraton, Renaissance and Crowne Plaza.Last year Globest.com reported Hilton’s announcement to put eight of its hotels for sale, including the Tapatio Cliffs Resort. The move was made after the company sold 13 hotels in 11 transactions totaling $416 million between May and July 2005. The corporation said the sales are a way of striking a greater balance between income derived from real estate and income from management and franchise fees.The 13 hotels sold were the 230-suite Hilton Suites in Anaheim; the 226-suite Hilton Suites in Phoenix; the 216-suite Embassy Suites in Cleveland; the 353-room Doubletree Hotel in Bellevue, WA; the 500-room Hilton Alexandria in Virginia; the 407-room Hilton Charlotte in North Carolina; the 351-room Hilton Glendale in California; the 203-suite Hilton Suites in Brentwood, TN; the 405-room Hilton in East Brunswick, NJ; and two Homewood Suites by Hilton hotels, a 137-room property in Ft. Worth and a 121-room property in Nashville.

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