Search
 

Interstate Grows Wholly Owned With $74M Buy

ATLANTA-The Westin Atlanta Airport Hotel becomes the Arlington, VA-based company's sixth wholly owned asset and its first Westin.

By Melissa Kress | Updated on May 07, 2007

ATLANTA-Interstate Hotels & Resorts is acquiring the 495-room Westin Atlanta Airport Hotel for $74 million. When the deal closes later this quarter, the hotel will be the first Westin in the Arlington, VA-based hospitality firm’s portfolio of wholly owned assets, joining five other hotels.

According to an Interstate release, the Westin Atlanta Airport will be its largest single acquisition. In addition to the $149,500-per-key price, Interstate will spend $18 million to renovate the rooms and common areas. The deal will be financed with cash on hand and funds drawn from a line of credit; a spokesperson tells GlobeSt.com that Interstate declined to reveal the cap rate.

“This is a well-maintained, high-profile airport property in one of the largest and most economically important cities in the Southeastern US,” Interstate CEO Thomas F. Hewitt says in a statement. He adds Interstate has operated the hotel for nine years. “At less than $150,000 per key, it is priced well below replacement cost and represents a very attractive opportunity with compelling economics and the potential to generate significant long-term shareholder returns.”

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.