MOUNT LAUREL, NJ-Hotel REIT Highland Hospitality Corp. has sold the Radisson Mount Laurel here for $31.6 million. The soon-to-be rebranded under the Marriott flag site sold to an unnamed buyer.
The purchase price for the 283-room asset, currently finishing renovations, works out to $110,660 per room. Highland purchased the site for $14 million in September 2004 and instituted a more than $7-million upgrade to the site. The transaction is expected to close on June 30.
"The sale of the Radisson Mount Laurel hotel provides us an opportunity to sell a non-strategic asset at a significant gain," says Highland president and CEO James L. Francis, "and to use the proceeds to invest in hotel properties more in line with our stated strategy."
Highland owns 26 hotels with 8,200 rooms in 13 states, the District of Columbia and Mexico. Its other New Jersey holdings are the Hilton Parsippany and the Westin Princeton at Forrestal Village. The firm acquired the Westin site from Starwood for $54 million at the end of last year.
For the first quarter 2006, the company reported total revenue of $86.5 million and net income available to common stockholders of $3.7 million, or $.07 per diluted common share. For the first quarter 2006, RevPAR for US hotel portfolio increased 15.5% to $95.21. Occupancy increased by 2.9 percentage points to 69.3%, while ADR increased by 10.6% to $137.31.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 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.
