CRYSTAL CITY, VA, January 9, 2002 – On behalf of Lend Lease Real Estate Investments’ Value Enhancement Fund IV, Jones Lang LaSalle Hotels has arranged the sale of the Doubletree Hotel Crystal City to an affiliate of CNL Hospitality Corp. for $70 million. The Doubletree Hotel Crystal City is located in the heart of Crystal City, one of the most dynamic and vibrant office and retail markets in the Washington Metropolitan Area. The property will remain under the Doubletree flag.
According to Thomas Fisher, Senior Vice President of Jones Lang LaSalle Hotels, the hotel offers significant upside potential in a very stable and dynamic market. “There are a number of unique value enhancement opportunities including the creation of some pretty sizeable meeting space to penetrate the group market,” said Fisher. He also added, “By virtue of its location in the heart of the Washington MSA and as one of the closest hotels to the Pentagon, the property is ideally situated to cater to government, corporate, group, airline and leisure related business.”
The Doubletree Hotel Crystal City features 630 guestrooms in two high-rise towers, more than 26,000 square feet of flexible meeting space and a rooftop pool. Its signature dining facilities include the Skydome Lounge, the area's only revolving rooftop restaurant, and Windows Over Washington, a fine dining establishment providing spectacular views of the Washington, D.C. skyline.
"This area enjoys the stabilizing presence of numerous government agencies, which have recently increased procurement activities. Nearby tenants include Lockheed Martin, the U.S. Navy, KPMG, and The Department of Defense," added Arthur Buser, Managing Director of Jones Lang LaSalle Hotels. "The government is a sizable market segment in the area and the new owners will benefit from the recent 26% increase in the government per diem rate from $119 to $150.”
Jones Lang LaSalle Hotels, the world’s leading hotel investment services group, provides clients with value-added investment opportunities and advice. In 2001, its success story includes the sale of 7,972 hotel rooms to the value of US$1.3 billion in 39 cities and advisory expertise on 100,550 rooms to the value of US$26.3 billion across 255 cities. Jones Lang LaSalle Hotels’ services include transactions, mergers and acquisitions, financial advice and capital raising, valuation and appraisal, asset management, strategic planning, operator assessment and selection and industry research. Jones Lang LaSalle (NYSE: JLL) is the world’s leading real estate services and investment management firm, operating across more than 100 key markets on five continents.
CNL Hospitality Corp., the hotel industry investment and development subsidiary of CNL Financial Group, Inc., has acquired a total of 55 hotels with another eight properties in the pipeline for a total of 16,500 rooms in 22 states. Headquartered in Orlando, Florida, CNL Financial Group Inc. is one of the nation’s largest, privately held real estate investment and finance companies. CNL Financial Group, Inc. and the entities it has formed or acquired have more than $5.3 billion in assets, representing more than 2,850 properties in 49 states.
Value Enhancement Fund IV is the fourth in a series of closed end enhanced real estate funds operated by Lend Lease Real Estate Investments. Lend Lease is one of the largest real estate investment managers in the world with US$49 billion of assets under management. The company has $38 billion in real estate and commercial mortgages under management for institutional and private clients in the U.S. Lend Lease's investment programs cross the risk/return spectrum for both equity and debt capital, and in the public and private markets. In addition, the Group operates a leading U.S. loan servicing company, CapMark Services, for the benefit of clients investing in real estate-related debt.
Listed on the Australian Stock Exchange, the Lend Lease Group operates in 43 countries on six continents, with a significant presence in Australia, Asia, Europe, and the United States.
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