News Briefs

Management change for Miami's Eden Roc It once played host to the likes of Elizabeth Taylor, Frank Sinatra and Sammy Davis Jr.; now Miami Beach's landmark Eden Roc Resort & Spa is under new management, with the hopes of restoring that image.

Affiliates of Blackacre Capital Group L.P. - a New York-based affiliate of private investment fund Cerberus Partners L.P. - and Destination Hotels & Resorts - the hospitality subsidiary of Los Angeles-based Lowe Enterprises, acquired the property from the Goldman family, which had purchased the resort from the FDIC in 1992. Destination Hotels & Resorts began managing the property in April.

The 349-room luxury hotel underwent a $28 million renovation in 1996, but Blackacre and Destination Hotels & Resorts plan to invest more than $15 million through the year 2000 in guest rooms, public areas and hotel operating systems.

Eastern Consolidated Properties, New York, was the investment broker for the transaction.

Host Marriott adds portfolio, plans REIT April was a busy month for Host Marriott Corp. as the Bethesda, Md.-based company took steps to increase its growth potential and strengthen its competitive edge.

Solidifying its reputation as a leading owner of luxury hotels and launching a new multi-branding strategy for the company, Host Marriott reached an agreement with various affiliates of The Blackstone Group and Blackstone Real Estate Partners to acquire interests in 13 luxury hotels in the United States and certain other assets in a transaction valued at approximately $1.775 billion, including the assumption of debt. Following the transaction, Blackstone will have the largest ownership interest in Host Marriott on a fully diluted basis.

The Blackstone portfolio includes two Ritz-Carltons, three Four Seasons, one Grand Hyatt, three Hyatt Regencies and four Swissotel properties. Merrill Lynch advised Host Marriott and Bear Stearns & Co. advised Blackstone on the transaction.

In addition, Host Marriott announced that its Board of Directors authorized the company to reorganize its business operations to qualify as a real estate investment trust, effective as of Jan. 1, 1999, and to spin off its senior living communities business through a taxable stock dividend to its shareholders.

JLW negotiates deals for two four-star hotels On behalf of its client, Pentagon City Hotel Partners L.P., New York-based Jones Lang Wootton has sold the Ritz-Carlton Pentagon City to WSC Pentagon City Hotel LLC for $72.5 million. The 345-room, eight-year-old property, located adjacent to the Fashion Centre complex in Arlington, Va., is rated four stars by Mobil and four diamonds by the Automobile Association of America.

In a separate transaction, JLW arranged a $10 million first mortgage on the Hotel Jerome on behalf of Hotel Jerome Associates L.P., a Colorado limited partnership. Amresco underwrote the loan and included it in a loan pool, which was sold to Teachers Insurance and Annuity Association. JLW negotiated a five-year mortgage with two one-year renewals. The 93-room hotel, located at 330 E. Main St. in the heart of Aspen, also is a four-star, four-diamond resort.

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