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JV Buys Two Hotels During Down Market

WYNNEWOOD, PA-NHH picks up hotels in Atlanta and Pittsburgh for an undisclosed but 'significantly below the placement costs' amount.

By Casey Freeman | Updated on July 11, 2008

[IMGCAP(1)]WYNNEWOOD, PA-In a joint venture deal National Hospitality Holdings LLC and CMS Cos. paid an undisclosed amount for two hotels, one in Pittsburgh and another in Atlanta. NHH will spend $12 million on renovations for both hotels, take over operation duties and work under a long-term license agreement with Hilton Hotels Corp.

“This is a straight down the fairway value-add investment deal,” John DePaul, managing principal and CEO of NHH tells GlobeSt.com. “We’re buying two hotels in good locations that are in need of renovation and new management to improve their profitability and position in the marketplace.”

[IMGCAP(2)]While the price paid for the hotels wasn’t disclosed, DePaul says “we are privately held and do not wish to disclose that information. Let’s just say it was significantly below the placement costs inclusive of all transaction costs including closing costs and renovations.” With the economy down and the dollar’s value shrinking, the joint venture had a plan to invest in the struggling market.

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