"We have committed more than $150 million in acquisition investment since we announced the formation of our acquisition fund and purchased our first property several months ago," says Michael George, Crescent president and CEO, in a statement. "All four properties fit our acquisition profile of 200- to 500-room, upper, upscale hotels located in top US markets, as well as resorts."
Crescent has acquired the Sheraton Milwaukee Brookfield, a 389-key property with 18,000 sf of meeting space located at 375 South Moorland Rd. It will undergo a $10-million renovation to upgrade the exterior, rooms and public space that will be completed by Q3 2007.
The other acquisitions, which have not yet closed, are a 200-plus key Sheraton Hotel in the Washington, DC area and a 200-plus suite Embassy Suites somewhere in the Mid-Atlantic region. The Sheraton, once the sale closes in early February, will receive $5 million in capital improvements. The Embassy Suites will undergo a $3-million renovation, when that transaction is completed, by the end of February. Crescent's management division will oversee the upgrades.
The Sheraton Washington could have traded anywhere from $250,000 per key to $375,000 per key, Vikram Antin, an associate with Marcus & Millichap's National Hospitality Group here, tells GlobeSt.com. "It all depends on how well the deal was negotiated and the condition of the property. That is the range hotel assets are trading in the DC area now."
Crescent Hotels also announced it has signed two new management contracts, including its first condo-hotel project in Biloxi, MS. The 160-unit condo hotel, called Avalon Suite Hotel, is under construction, scheduled to open in Q1 2008. "Discussions are under way pertaining to additional condo hotels in Florida and Nevada in 2007," George says.
Its second contract, Holiday Inn Express Hotel & Suites-Six Flags/West Boerne, is outside of San Antonio and is the company's fifth Texas hotel. The property has 62 rooms, including 21 suites.
"We have a strong and growing portfolio and expect to add a significant number of properties in 2007 through acquisitions, joint ventures and third-party management contracts," George says. "Our fund is aggressively seeking additional properties, and we are actively negotiating a number of transactions." Crescent Hotels did not return calls in time for publication.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
