posted on March 31, 2011 22:19
A Dallas-based investment fund purchased a majority stake in the Austin Hilton Garden Inn as part of mega portfolio takeover.
Ashford Hospitality Trust Inc. (NYSE: AHT) purchased the Austin property and 28 others from Highland Hospitality Corp. in a $1.3 billion deal, according to a press release. A joint venture formed by Ashford and an unnamed partner acquired the properties through a foreclosure agreement with lenders, The Associated Press reported.
A press release sent Thursday said the deal covers primarily Hilton, Marriott, Hyatt and Starwood banner hotels run by financially-stressed Highland, of which Ashford is a major creditor. Highland originally paid $150,000 per key before capital improvement funding between 2003 and 2007.
The new joint venture owner will invest $43 million in capital expenditures. The group settled consensual restructuring with existing senior lenders that will provide $530 million in mortgage financing.
Ashford already owns the Embassy Suites in Austin. The Hilton Garden Inn is at 500 North I-35.
3/11/11, Austin Business Journal