According to the agreement originally outlined by the companies, JER would assume Highland's approximately $260-million existing debt and acquire all of its outstanding common stock and operating partnership units for $19.50 per share--a 15% premium over Highland's three-month average closing share price. No future dividends will be paid on the common stock.
With the deal on track to close, JER is anticipating adding 27 hotel properties under the Crestline Hotels and Resorts, Marriott International, Hilton Hotels, Hyatt Hotels, Ritz-Carlton and McKibbon Hotel Management under Marriott, Hilton, Ritz-Carlton, Westin, Hyatt, Sheraton, Renaissance, Crowne Plaza, Courtyard, Hilton Garden Inn, Wyndham and Residence Inn flags. All together the portfolio consists of an aggregate of 8,382 rooms in 14 states and the District of Columbia.
Cia Buckley, president of JER's US Fund Business, has said that JER intends to invest additional capital in the portfolio to position it for further growth.
The last hotel portfolio the company acquired was a little more than a year ago. In May 2006 JER acquired Jameson Inns Inc. for $371 million or $2.97 per share. With this sale, JER added 107 proprietary-branded hotel properties in 12 southeastern and Midwestern states, including such brands as the Jameson Inn and Signature Inn names.
Also in the news, the joint venture between Formation Capital and JER has completed its acquisition of Genesis Healthcare Corp. with an offer of $63 a share for the Genesis stock.
Continue Reading for Free
Register and gain access to:
- 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
© 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.
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.
