MEMPHIS, TN- RFS Hotel Investors has concluded the sale of the 124-room Hampton Inn in Warren, MI for $5.4 million.
According to Kevin Luebbers, executive vp/CFO of RFS, the hotel was acquired by the company in 1994 for $3.4 million and produced an unleveraged return on investment of 22% during the term of ownership. The sales price results in a gain of approximately $700,000, and the proceeds from the sale will be used to reduce the companys borrowings.
Randy Churchey, president/COO of RFS, said the sale is consistent with the companys strategy of reducing its investment in limited-service hotels. With this sale, RFS now receives approximately 28% of its lease revenues from limited service hotels, down from 43% four years ago. (10/30/00)