5 p.m., May 26
Manchester Didn't Rake in Big Bucks on Hotel Sale
Host Hotels and Resorts has filed the official statement for its most recent quarter. It indicates that San Diego's Papa Doug Manchester didn't clean up on the March 17 sale of the Manchester Grand Hyatt to Host.
According to information in Host's quarterly report, Host paid $566 million in cash to Manchester for the 1625-room hotel. But $403 million was for repayment of existing loans.
Host issued $6 million of stock equivalents to Manchester. His company, Manchester Grand Resorts, got $99.5 million of preferred stock equivalents. But Manchester also gave a $99.5 million note to Host.
Manchester receives slightly more interest from preferred dividends than Host gets from the note.
All told, Manchester appears to have gotten around $169 million, although he certainly would have had legal and administrative expenses that would have lowered that figure. I put questions to Manchester's company and got no response.
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