BETHESDA, Md., Dec. 17 /PRNewswire/ -- Crestline Capital Corporation
(NYSE: CLJ) announced that it has sold its 205-room Baltimore Inner Harbor Courtyard to RLJ Development LLC, a Bethesda-based hotel company for $26 million. Crestline Hotels & Resorts, a wholly-owned subsidiary of Crestline Capital Corporation, will continue to manage the hotel under a long-term management contract.
Bruce D. Wardinski, Chairman of the Board, President and Chief Executive Officer stated, We are pleased to announce the sale of the Baltimore Inner Harbor Courtyard to RLJ Development. As we continue to implement our hotel management growth strategy, we look forward to expanding our relationship with RLJ Development.
Robert L. Johnson, Chairman and CEO of RLJ Development added, Baltimore is a wonderful city, and the Inner Harbor East is a particularly dynamic area right now. We are delighted to participate in the excitement there by making this substantial investment. The Courtyard is well positioned, and we are confident that, as our manager, Crestline Hotels & Resorts will continue to make the hotel a leader in the Baltimore market.
James L. Francis, Executive Vice President and Chief Financial Officer commented, This hotel has performed exceptionally well since we opened it in December of last year. We believe that downtown limited-service properties with an excellent brand provide very strong returns. The sale will generate approximately $24 million in after-tax proceeds. As we previously announced, we are exploring all strategic options available for efficiently redeploying our capital and maximizing shareholder value.
The 205-room Baltimore Inner Harbor Courtyard is located at 1000 Aliceana Street. The property offers meeting rooms and conference rooms totaling nearly 2,500 square feet, water-view rooms, and all of the recent Courtyard brand enhancements including a library with high speed data ports and individual work stations. The hotel is part of the two million square foot Inner Harbor East mixed-use development.
About the companies
Crestline Capital Corporation is the parent company of Crestline Hotels & Resorts, among the nation's leading independent hotel management companies, and is the owner of one of the nation's premier senior living community and hotel portfolios. Additional information about Crestline Capital Corporation is available at the company's web site: http://www.crestlinecapital.com .
Crestline Hotels & Resorts manages and leases 37 hotels, resorts and conference and convention centers with approximately 7,000 rooms in twelve states and the District of Columbia. Crestline Hotels & Resorts manages properties independently and under such well-regarded brands as Marriott, Hyatt, Hilton, Sheraton, Renaissance and Crowne Plaza. Additional information about the hotel management company is available at the company's web site: http://www.crestlinehotels.com .
RLJ Development, LLC is a privately held hotel investment company founded and led by Chairman and CEO Robert L. Johnson. The company owns seven Hilton- branded hotels in major markets around the U.S., along with the Baltimore Inner Harbor Courtyard, which is the first Marriott-branded hotel in the portfolio. RLJ Development is the largest African-American owned hotel company in the U.S., and is actively seeking additional investment opportunities across the nation in hospitality and related segments. Additional information about the company is available through Tom Baltimore or Ross Bierkan at 301-896-0204.
Note: Certain matters discussed herein are forward-looking statements within the meaning of the Private Litigation Reform Act of 1995. Certain, but not necessarily all, of such statements can be identified by the use of forward-looking terminology, such as believes, expects, may, will, should, estimates or anticipates or the negative thereof or comparable terminology. All forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual transactions, results, performance or achievements of the Company to be materially different from any future transactions, results, performance or achievements expressed or implied by such forward-looking statements. These may include: (i) national and local economic and business conditions or governmental regulations that will affect demand, prices, wages or other costs for hotels and senior living communities; (ii) the level of rates and occupancy that can be achieved by such properties; (iii) the Company's ability to compete effectively in areas such as access, location, quality of properties and rate structures; (iv) the ability to maintain the properties in a first-class manner (including meeting capital expenditure requirements); (v) the availability and terms of financing; (vi) governmental actions and initiatives including the REIT Modernization Act; and (vii) changes to the public pay systems for medical care and the need for compliance with environmental licensure and safety requirements; (viii) the ability to close the sale of the senior living business; and (ix) the ability to find available acquisitions and investment opportunities. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions and business opportunities, it can give no assurance that its expectations will be attained or that any deviations will not be material. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances.
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