GAITHERSBURG, Md., Oct. 5, 2004 (PRIMEZONE) -- The Hilton Washington DC/North Gaithersburg Hotel has been purchased by a joint venture group that includes VEF Advisors, LLC, a privately owned real estate investment management firm based in Atlanta, Georgia, and Wilton D. (Chick) Hill, President of Davidson Hotel Company, a full-service hospitality company based in Memphis, Tennessee. RockBridge Capital, LLC provided financing.
Davidson Hotel Company, a full-service company providing management, development, consulting and accounting expertise for the hospitality industry, will manage the hotel as part of the Hilton family of hotels. Davidson will also oversee an immediate $7 million renovation that will touch all aspects of the 301-room, twelve-story hotel located in the I-270 High Tech Corridor of Montgomery County, Maryland.
The scope of work includes architectural enhancements inside and outside and renovation of guestrooms, bathrooms, corridors and public areas. Plans call for a new fitness center, a new lobby, lobby bar and restaurant, and enhanced meeting and ballroom facilities.
The acquisition is the third purchase of a Washington, DC-area hotel by funds managed by VEF Advisors, which in the past ten years has invested in more than $3 billion of real estate through its five closed-end real estate investment funds known as the Value Enhancement Fund Series. VEF is an affiliate of New York-based Apollo Real Estate Advisors, L.P., one of the most active opportunistic real estate investors.
"We look forward to working with Davidson Hotel Company to restore the hotel to its original form," said Jim Ryan, CEO of VEF Advisors.
The full-service hotel offers an array of amenities to its corporate, government and leisure guests, including high-speed Internet access, state-of-the-art business center, and an indoor/outdoor pool, among others. The four-acre property is located on Perry Parkway in Gaithersburg just off I-270 and MD-355 and is convenient to major airports, shopping, theaters, restaurants and federal agencies, such as the Food and Drug Administration.
"This is an exceptional property for us in a vibrant community with a strong and diverse mix of corporate, government and international commerce," said Hill. "We view the suburban Washington, DC area as a unique, strong and growing market for opportunity."
About Davidson Hotel Company
Davidson Hotel Company is a full-service company providing management, development, consulting and accounting expertise for the hospitality industry. The company currently manages 22 hotels across the United States under such flags as Marriott, Renaissance, Hilton, Radisson and Holiday Inn. These hotels represent 6,000 rooms and 3,200 employees. Experienced in hotel development as well, Davidson has developed 20 hotels containing more than 2,500 rooms and planned and carried out major renovations at 20 hotels containing more than 5,000 rooms. These projects represent capital improvements in excess of $300 million. Find more information at www.davidsonhotels.com.
About VEF Advisors
VEF Advisors, LLC, formerly part of Lend Lease Real Estate Investments, Inc., is a privately held real estate investment management company based in Atlanta, with regional offices in the Northeast, Midwest and West. During the past decade, the company has invested in more than $3 billion through a group of five closed-end real estate investment funds known as the Value Enhancement Fund Series. The fund managers use a value-added investment style and invest in all property sectors in and around major markets across the United States with the goal of generating strong income and capital appreciation over the life of the fund. VEF Advisors Chief Executive Officer James P. Ryan leads the company with Howard C. Huang, Chief Investment Officer; and B. Stanton Breon, CFA, CPA, Chief Financial Officer, among others. Find more information at www.vefadvisors.com.
About Apollo Real Estate Advisors, L.P.
Apollo Real Estate Advisors is one of the most active and prominent opportunistic real estate investors in the U.S. and internationally. Apollo specializes in undermanaged and distressed properties in major urban areas that are trading at a discount to their intrinsic value, offering opportunities for the firm to enhance value through its operational and financial management. Since the firm's founding in 1993, Apollo has overseen the investment of eight real estate funds totaling more than $4.5 billion in equity. Apollo funds collectively have invested in more than 210 transactions with an aggregate value of more than $20 billion. Apollo principals are William Mack, founder and senior partner; Lee Neibart, senior partner; John Jacobsson and Richard Mack, managing partners, New York; William Benjamin, managing partner, London; Richard Ackerman, partner, Los Angeles; and Stuart Koenig, partner and global CFO.
About RockBridge Capital, LLC
Based in Columbus, Ohio, RockBridge provides capital to the real estate industry through the RockBridge Real Estate Funds. The principals of RockBridge have formed and managed six closed-end real estate funds with both institutional and high-net-worth investors. RockBridge originates bridge first mortgage loans, mezzanine loans, and preferred equity investments, primarily in the hotel sector. Since 1993, the RockBridge team has invested over $500 million in more than 250 assets nationwide, with aggregate transaction capitalization of nearly $3.5 billion. For additional investment and financing opportunities available through RockBridge Capital, contact James T. Merkel at (614) 246-2505 or visit www.RockBridgeCapital.com.