Press Release: Crestline Capital Corporation
June 1, 2001
BETHESDA, MD -- Crestline Capital Corporation (NYSE: CLJ) announces that it has entered into an agreement to sell
its portfolio of 10 Residence Inn hotels to Apple Hospitality Two Inc., a real estate investment trust (REIT) based
in Richmond, Virginia. Total consideration for the transaction is $119 million, including approximately $54 million
of debt that will be assumed by the buyer. The transaction is expected to close in the third quarter and is subject
to customary closing conditions.
Bruce D. Wardinski, Chairman of the Board, President and Chief Executive Officer stated, ``We are pleased to announce
the sale of our owned Residence Inn hotel portfolio to Apple Hospitality Two. As we continue to implement our hotel
management growth strategy, we look forward to expanding our relationship with Apple Hospitality.'' Mr. Wardinski
continued, ``Since Marriott International manages these hotels, a sale of these assets is consistent with our strategy
of investing in hotels where Crestline Hotels & Resorts is the manager. With the attractive returns we are
able to realize and the substantial capital that will be unlocked, this is an excellent transaction for Crestline.''
James L. Francis, Executive Vice President and Chief Financial Officer commented, ``The original acquisition of
the Residence Inn hotel portfolio in 1999 was opportunistic. We were able to purchase 77 percent of the portfolio
at extremely attractive pricing. Over the last two years we have increased our ownership to 100 percent. With the
net proceeds from this sale and the proceeds from the sale of our full-service hotel leases to Host Marriott, we
will have a significant cash position. As we previously announced, we are exploring all strategic options available
for efficiently redeploying our capital.''
About the companies
Crestline Capital Corporation is the parent company of Crestline Hotels & Resorts, among the nation's leading
independent hotel management companies, and is the owner of one of the nation's premier senior living community
and hotel portfolios. Additional information about Crestline Capital Corporation is available at the company's
web site: http://www.crestlinecapital.com .
Crestline Hotels & Resorts manages and leases 37 hotels, resorts and conference and convention centers with
over 7,000 rooms in thirteen states and the District of Columbia. Crestline Hotels & Resorts manages properties
independently and under such well regarded brands as Marriott, Hyatt, Hilton, Sheraton, Renaissance and Crowne
Plaza. Additional information about the hotel management company is available at the company's web site: http://www.crestlinehotels.com
.
Note: Certain matters discussed herein are forward-looking statements within the meaning of the Private Litigation
Reform Act of 1995. Certain, but not necessarily all, of such statements can be identified by the use of forward-looking
terminology, such as ``believes,'' ``expects,'' ``may,'' ``will,'' ``should,'' ``estimates'' or ``anticipates''
or the negative thereof or comparable terminology. All forward-looking statements involve known and unknown risks,
uncertainties and other factors, which may cause the actual transactions, results, performance or achievements
of the Company to be materially different from any future transactions, results, performance or achievements expressed
or implied by such forward-looking statements. These may include: (i) national and local economic and business
conditions or governmental regulations that will affect demand, prices, wages or other costs for hotels and senior
living communities; (ii) the level of rates and occupancy that can be achieved by such properties; (iii) the Company's
ability to compete effectively in areas such as access, location, quality of properties and rate structures; (iv)
the ability to maintain the properties in a first-class manner (including meeting capital expenditure requirements);
(v) the availability and terms of financing; (vi) governmental actions and initiatives including the REIT Modernization
Act; and (vii) changes to the public pay systems for medical care and the need for compliance with environmental
licensure and safety requirements. Although the Company believes the expectations reflected in such forward-looking
statements are based upon reasonable assumptions and business opportunities, it can give no assurance that its
expectations will be attained or that any deviations will not be material. The Company undertakes no obligation
to publicly release the result of any revisions to these forward-looking statements that may be made to reflect
any future events or circumstances.
SOURCE: Crestline Capital Corporation