MeriStar Hospitality to Sell 10 Florida Assets

MeriStar Hospitality to Sell 10 Florida Assets

MeriStar Hospitality Corporation, one of the nation’s largest hotel real estate investment trusts (REIT), has signed a definitive agreement to sell a portfolio of nine hotels (1,948 rooms) and a golf and tennis club, all located in Florida, to an affiliate of The Blackstone Group for approximately $367 million in cash, subject to certain adjustments and satisfaction of customary closing conditions. The company expects the transaction to close by the end of the first quarter 2006.

“We expect this portfolio sale to generate significant benefits for our shareholders by allowing us to accelerate our business plan objectives of repaying our more expensive debt and completing property upgrades,”