18 Homestead Studio Suites Hotels Sold
Hospitality Properties Trust today announced that it has sold 18 Homestead Studio Suites hotels (2,399 rooms) for $205.35 million. HPT expects to recognize a gain on this sale of approximately $95 million.
HPT purchased these 18 hotels in 1999 from Homestead Village, Inc. (which was then a publicly owned company) for $145 million. The expected gain reflects depreciation expense realized by HPT since 1999. Simultaneous with this purchase, these hotels were leased by HPT to a subsidiary of that seller for minimum rent of $15,960,000/year plus percentage rent based upon increases in gross revenues at the hotels. In 2006, the percentage rent received by HPT for these hotels was approximately $509,000. Read more