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Real estate investment trusts

Hotel and Automotive Industry Developments: Key Takeaways and Statistics

Strategic Insights

— 2 min read

FelCor Suite Hotels Inc., a real estate investment trust, has agreed to purchase the Embassy Suites on Laclede's Landing as part of an $245 million package of eight all-suite hotels from Starwood Hotels & Resorts, a fellow real estate investment trust. This acquisition is part of a broader consolidation in the hotel industry, with Starwood needing cash to fund its recent acquisitions of Westin Hotels and ITT Corp.

In other industry news, Chrysler Corp. has announced plans to expand its Dodge Ram pickup truck plant in Mexico, citing the plant's higher productivity and quality compared to its US-based factories. The company will invest $220 million in the expansion, further solidifying Mexico's position as a major player in the global auto industry. Additionally, General Motors Corp. has reported record earnings, with CEO John Smith Jr. receiving a compensation package of $9.2 million in 1997.

Key Takeaways:

  • FelCor Suite Hotels Inc. has agreed to purchase eight all-suite hotels from Starwood Hotels & Resorts, valued at $245 million.
  • The acquisition is part of a broader consolidation in the hotel industry, with Starwood needing cash to fund its recent acquisitions.
  • Chrysler Corp. plans to expand its Dodge Ram pickup truck plant in Mexico, citing the plant's higher productivity and quality compared to its US-based factories.
  • The company will invest $220 million in the expansion, further solidifying Mexico's position as a major player in the global auto industry.
  • General Motors Corp. has reported record earnings, with CEO John Smith Jr. receiving a compensation package of $9.2 million in 1997.

Statistics:

  • FelCor Suite Hotels Inc. will purchase eight all-suite hotels from Starwood Hotels & Resorts for $245 million.
  • The Embassy Suites on Laclede's Landing was built in 1985 and purchased by the buyer and seller, real estate investment trusts, at an unspecified price point.
  • Chrysler Corp. plans to invest $220 million in the expansion of its Dodge Ram pickup truck plant in Mexico.
  • General Motors Corp. paid Chairman John Smith Jr. a compensation package of $9.2 million in 1997, consisting of a salary of $1.75 million, an annual incentive of $2.45 million, and long-term incentive pay of $1.04 million.
  • The Mexican auto industry has undergone significant growth, with vehicle production increasing from 398,000 in 1985 to 1.2 million in 1997.

Sources:

  • Bloomberg News, "FelCor Buys Embassy Suites, an 800-Room Hotel" (no date mentioned)
  • AP News, "Chrysler Expands Mexico Plant, Cites Productivity" (no date mentioned)
  • SEC Filing, General Motors Corp. Proxy Statement (March 17, 1998)
  • Automotive News, "Mexico Auto Industry Booms" (no date mentioned)

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