Hilton Hotels Corporation (NYSE:HLT) announced that it has sold the 220-suite Embassy Suites Hotel in Memphis, Tennessee to 1022 Shady Grove LLC, an affiliate of Haberhill LLC.
The purchase price was not disclosed and it is estimated that the new ownership group will spend $3.5 million in additional capital to upgrade the property over and above the approximately $2 million that Hilton Hotels Corporation has spent within the past year. The hotel will continue to be operated as an Embassy Suites Hotel by Hilton Hotels Corporation under the terms of long term franchise and management agreements.
Additionally, the popular restaurant Frank Grisanti's will remain an important part of the property as the new owners have extended its lease through 2014, with an additional 5 year extension option.
In a separate transaction, Hilton also announced that the 140-suite Homewood Suites by Hilton hotel on Poplar Avenue in Memphis has been sold to Apple REIT Companies for $11.1 million. The property will also be operated as a Homewood Suites by Hilton hotel by Hilton Hotels Corporation under the terms of long term franchise and management agreements. The transaction was completed May 15, 2007.
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