Highland Prices Hotel-Linked Offering

Highland Hospitality Corp., a real estate investment trust based in McLean, Va., has priced a public offering of 7.3 million shares of common stock aimed at helping finance the purchase of two hotels at $12.35 per share.The REIT said the proceeds will help fund part of the $76 million purchase price of The Melrose Hotel in Washington, D.C., and part of the $85 million purchase price of an unnamed hotel that Highland has signed a nonbinding letter of intent to buy. Bear, Stearns & Co. and Deutsche Bank Securities are the joint book-running managers of the offering. The underwriters have been granted an option to buy up to 500,000 additional shares of common stock to cover any overallotments. The lodging REIT can be found online at http://www.highlandhospitality.com.