BETHESDA, MD— Sell off over 100 leases at the same time you turn much of your attention away from the wholesale acquisition of management companies and what have you got? In the case of Crestline Capital Corp., you still have Crestline Hotels & Resorts— and a continuing strong hand in both of these lodging-industry venues. From his vantage point as Crestline Chairman/President/CEO Bruce Wardinski noted that 2001 can’t help but be a year of great change for the organization, for reasons ranging from business repositioning brought about by the implementation of the REIT Modernization Act to the company’s own natural process of evolution to the health and well-being of the national economy in general. For starters, when Host Marriott Corp. purchased more than 100 leases held by Crestline on certain full-service hotels the REIT already owned (for an all-cash price of $201 million that is slated to rise to $205 million upon the closing of one final lease transaction), Crestline was nonetheless left in a strong position as a third-party lessee. At presstime, the company still had 71 subleases on its books, mounted both with Host Marriott as the lessee and Hospitality Properties Trust (HPT) as the owner. Additionally, there are another two dozen lease agreements in place directly with lodging-oriented real estate investment trusts other than Host Marriott. These agreements have been struck with CNL (a privately held REIT) as well as with publicly held HPT. In terms of adding to the company’s portfolio of nearly three dozen management contracts, Wardinski (and other Crestline sources) indicated the organization has “changed its thinking somewhat,” opting to relegate its previously emphasized intent to acquire management companies and their existing contracts to the back burner. Instead, the revised game-plan is to take a more direct approach to building critical mass. Specifically, the company is now reportedly looking to operate more on its own behalf, largely through side-by-side investment with owners of individual properties and/or small portfolios. As Wardinski pointed out: “In 2000, we expanded into the hotel management business as a Top 15 player through the purchase of Durbin Cos. and Stormont Trice Management Co. as well as [via the]generation of new management contracts. “In 2001,” Wardinski continued, “we expect to continue to generate new management contracts on a one-off basis and via small portfolios. Unlike most in the industry, we have significant investment capacity to acquire management companies [if need be]and partner with hotel owners in order to obtain favorable management agreements.” As for what type of hotels will be in the company’s sights, as well as where those hotels might be located, Wardinski said Crestline would continue to “manage upscale properties independently and under well-regarded brand names.” As he explained, this could include hotels, resorts, and conference/convention centers. Geographically speaking, the chairman noted that the company— while clearly interested in expanding its distribution westward— would “remain focused on U.S. properties for the foreseeable future” rather than actively pursue offshore opportunities. Not that Crestline needs to go to any great lengths in order to keep busy; apparently, there are more than enough opportunities as well as obstacles close enough at hand to keep the company’s plate full. Demanding full attention are such items as the industrywide labor shortage, on-site technological implementation and enhancement, and how all of this will play out against the backdrop of a less-than-boisterous economy. Tackling the technology issue first, Wardinski maintained that Crestline is very much involved in decision-making in this particular arena. As he explained, reaching a verdict on just the right course of action vis-a-vis “property-level technology is equal parts brand-driven requirements, property-level needs and regional/corporate initiatives.” O
