Inland American Lodging Group buys three Autograph Collection properties from Kessler

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01 October 2012 | Updated 01 October 2012

US: Florida and Georgia art-themed hotels sold by developer Richard Kessler

The Grand Bohemian Hotel in Orlando, Florida; Bohemian Hotel Savannah Riverfront in Savannah, Georgia; and Bohemian Hotel Celebration in Celebration, Florida, all founding hotels in Marriott's Autograph Collection, have been sold for an undisclosed sum.

Marcel Verbaas, president and CEO, Inland American Lodging Advisor, said: "This transaction provides strong equity returns for our shareholders, as we are acquiring these hotels at an attractive yield and a very accretive multiple. Boosted by the favorable mortgage financing, we expect that this acquisition will yield double-digit equity returns in our first year of ownership. These hotels have a combined average RevPAR in excess of $140 today and are well positioned to experience strong growth from their recent affiliation with Marriott's Autograph Collection. Above all, this transaction provides strong equity returns for our shareholders, as we are acquiring these hotels at an attractive yield and a very accretive multiple. Boosted by the favorable mortgage financing, we expect that this acquisition will yield double-digit equity returns in our first year of ownership."

"This transaction gave us the opportunity to add three high-quality, market-leading luxury hotels in excellent condition to Inland American. The acquisition of these assets further exemplifies our strategy of continued improvement of our portfolio while adding hotels that give us superior yields," Verbaas added.

Hodges Ward Elliott advised the seller on the transaction. The properties will continue to be managed by Kessler Collection Management under a 10-year management agreement.

"We are excited about embarking on this new relationship with Richard Kessler as we expand our investment in upper upscale and luxury hotels," said Verbaas. "We expect that we will continue to explore further opportunities to grow our relationship."

In a separate transaction, Inland American recently sold a portfolio of 12 non-core select service hotels to an affiliate of Wheelock Street Capital for a total consideration of approximately $115 million.

www.marriott.co.uk/Autograph
www.kesslercollection.com
www.inlandamerican.com

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