A US hotel management and property group is forming a partnership to buy three US hotels in a deal worth $118m.
US management company Interstate Hotels & Resorts is to form a joint venture partnership with property group Investcor and will buy the 321-room Hilton Seelbach Louisville in Kentucky, the 226-room Crowne Plaza Madison in Wisconsin and the 288-room Sheraton Columbia in Maryland.
Interstate is to invest approximately $4.7m in exchange for a 15% stake in the Hilton Seelbach and the Crowne Plaza Madison.
The two joint-venture properties will continue to be managed by Interstate under new management agreements.
Interstate plans to invest $12m in a comprehensive renovation of the Sheraton Columbia including upgrades to all guest rooms and public spaces, expected to be complete by the end of 2008.
By Ozge Ibrahim