Over the last several years, BridgeStreet has operated a number of our properties in Europe and the United States. As we became familiar with their strengths, we saw the strategic opportunity to combine our global real estate activity with BridgeStreet's proven management team
Dublin, Ireland and Arlington, VA (Vocus) January 29, 2007
Sorrento Asset Management, a Dublin-based, privately held, investment group, today announced that it has acquired BridgeStreet Worldwide, a leading international provider of corporate housing (referred to as serviced apartments throughout Europe), from Interstate Hotels & Resorts (NYSE: IHR) for approximately $40.5 million.
"Over the last several years, BridgeStreet has operated a number of our properties in Europe and the United States. As we became familiar with their strengths, we saw the strategic opportunity to combine our global real estate activity with BridgeStreet's proven management team," said Bryan Turley, Sorrento's chief executive officer. "The combination into a single organization will translate into significant synergies, and creates additional opportunities for BridgeStreet. We see BridgeStreet, which will be our management division, as a catalyst for strategic growth. In addition to operating our current properties, we will continue to pursue strategic acquisitions in key U.S. and European markets."
"Our partnership with Sorrento will open doors to multiple capital sources, which will allow us to fund our ongoing and future growth plans," said Lee Curtis, president and newly named CEO of BridgeStreet. "We remain committed to our clients and associates and are very enthusiastic about the opportunities this merger brings to both. We will remain a U.S.-based company, with our full management team remaining in northern Virginia."
Turley noted that BridgeStreet had successfully implemented a major turn-around program over the past few years. "Curtis and his team have re-energized the company by concentrating on high potential, tier-one markets, by increasing revenues and profitability and through significantly expanding their global accounts. We foresee significant upside growth potential."
In 2006, BridgeStreet introduced a number of client-friendly programs, including enhanced guest service packages in major markets, a state-of-the-art, integrated supplier management tool, a new luxury bedding program and the industry's first mapping and point of interest Web-based tools. As a result, guest satisfaction scores rose more than 17 percent.
The acquisition was financed by Credit Suisse, and Cantor Fitzgerald and DLA Piper acted as financial and legal advisor to Sorrento, respectively.
BridgeStreet Worldwide is one of the world's largest corporate housing providers. BridgeStreet and its network of Global Partners offer approximately 10,000 corporate apartments located in over 100 MSAs throughout the United States and 50 cities internationally. An award winner both in the U.S. and Europe, BridgeStreet properties meet uncompromising standards of quality, comfort and service. For more information about the company or to learn more about how BridgeStreet is Making Corporate Housing Easy, visit http://www.bridgestreet.com or call 1-800-BSTREET.
Based in Dublin, Ireland, Sorrento Asset Management is a leading provider of wealth management products and services, focused primarily on return on equity transactions. Formed in 2004, Sorrento's strength comes from its ability to structure high quality, off-market residential and commercial property transactions with guaranteed yields and full management, giving investors turn-key investment solutions. The company's investment products and services include a significant property portfolio in the U.K., Ireland, Europe and the U.S., structured products and private finance transactions, equity investments and pre-and post-retirement funds.
Jerry Daly or Carol McCune
Daly Gray Public Relations (Media)