WASHINGTON DC- MeriStar Hospitality Corp., the nations third largest hotel REIT reported third quarter 2000 RevPAR growth of 6.05% to $76.80. ADR for the quarter increased 7% to $103.83, while occupancy decreased 0.9% to 74%.
In conjunction with the REIT Modernization Act (RMA), the company has entered into an agreement, beginning January 1, 2001, to convert all 106 leases with MeriStar Hotels & Resorts to management contracts. The management agreements have been structured to mirror the current economics and terms of the existing leases. The conversion does not involve any cash consideration. Under the new management agreements, the base management fee is 2.5% of total hotel revenue with incentives up to an additional 1.5% of total revenue, if certain operating thresholds are achieved. (11/6/00)