NEW YORK— MeriStar Hospitality Corp.has acquired an interest in the 705-room Radisson Lexington Hotel here in midtown Manhattan. MeriStar, one of the nations largest hotel real estate investment trusts (REIT), made a $50 million structured investment that will provide a $5.75 million cumulative annual preferred return and a 49.99% equity participation. MeriStar financed this investment with cash. The 28-story landmark hotel was built in 1929, and is located in at the southeast corner of Lexington Ave. and 48th St.. The property features 82 suites, 101 deluxe rooms and 522 standard rooms. An $18 million renovation was completed in 2001 and included upgrades to all public spaces, guestrooms, bathrooms and mechanical systems. Ninety rooms were further upgraded to business-class rooms in March 2004, with new carpeting, granite-topped work desks and luxury linens. The hotel has leased retail space to four food and beverage outlets, including Raffles, J. Sung Dynasty, Latin Quarter (LQ) and Starbucks Coffee, which provides a stable cash flow base for the property, MeriStar noted. Highgate Oxford Management Co., which has managed the property since 1999, will continue to manage the hotel.
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