OAK BROOK, Ill.--(BUSINESS WIRE)--Inland American Lodging Group, Inc. (“IALG”), a wholly owned subsidiary of Inland American Real Estate Trust, Inc. (“Inland American”), announced today that it has acquired The Fairmont Dallas for $69 million, or approximately $127,000/key. The Fairmont Dallas is a 545 guestroom hotel consisting of two towers and 70,000 square feet of meeting space. Opened in 1969 as the “first” luxury hotel in Texas, the property exudes an air of elegance and luxury, combined with a dash of Texas flair. The Fairmont Dallas offers unparalleled accommodations that have received approximately $50 million of capital improvements since 1997, including $14.9 million ($27,300 per key) over the last four years. Inland American intends to invest in additional capital improvements that will allow the hotel to maintain and improve upon its luxury status.
"This unique asset represents a significant acquisition for Inland American at an attractive price per room,” said Marcel Verbaas, president and CEO, Inland American Lodging Advisors, Inc. “The Fairmont Dallas fits all of our value and strategic investment criteria. The acquisition of this hotel will contribute to the ongoing enhancement of the overall quality of our portfolio and further diversifies our portfolio by customer and asset mix. This transaction also extends our commitment to furthering the success of downtown Dallas and the Arts District.” Inland American acquired the 407-room Dallas Marriott City Center in October of last year. The hotel is currently undergoing substantial renovations to its guest rooms and public space that are scheduled to be completed by the end of this year.
Downtown Dallas is a great destination for conventions, business travelers and leisure travelers who are seeking great hotels with world class museums, restaurants and entertainment. Dallas-Fort Worth has more corporate headquarters than any other U.S. metropolitan area, including 24 companies in the Fortune 500. Following the acquisition of The Fairmont Dallas, Inland American Real Estate Trust has whole or partial ownership interest in 16,628 hotel rooms across the U.S., including 16 full service hotels.
About Inland American Lodging Advisor, Inc.
Inland American Lodging Advisor, Inc., located in Orlando, FL, focuses on acquiring and asset managing a diversified portfolio of lodging properties on behalf of Inland American Real Estate Trust, Inc. Inland American Lodging Advisor, Inc. currently oversees 104 hotels branded under various Marriott, Hilton, Starwood, Hyatt, Fairmont, Wyndham, IHG and Choice brands that are managed either by the brand’s managers or independent third-party management companies.
About Inland American Real Estate Trust, Inc.
Inland American Real Estate Trust, Inc. focuses on acquiring and developing a diversified portfolio of commercial real estate including retail, multi-family, industrial, lodging, office and student housing properties, located in the United States and Canada. The company also invests in joint ventures, development projects, real estate loans and marketable securities. As of March 31, 2011 Inland American owned, directly or indirectly through joint ventures in which it has a controlling interest, 983 properties, representing approximately 48 million square feet of retail, industrial and office properties, 9,790 multi-family units and 15,732 lodging rooms. Inland American is one of five REITs that are, or have been, sponsored by affiliates of The Inland Real Estate Group of Companies, Inc. For further information regarding Inland American, please refer to the company website at www.inlandamerican.com.
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