MEMPHIS, Tenn., March 8, 2010 (GLOBE NEWSWIRE) -- Education Realty Trust, Inc. (NYSE:EDR) today provided an update on a previously announced agreement the Company's development subsidiary, Allen & O'Hara Development Co., LLC (Allen & O'Hara), signed to provide Indiana University of Pennsylvania (FIUP) third party development and construction oversight services for a new hotel to be located on the IUP campus.
EDR will not be the owner of the hotel, which will be a mid-sized hotel connected to the Kovalchick Convention and Athletic complex (KCAC), now under construction at Indiana University of Pennsylvania. According to Dan Prushnok, President of the FIUP Board of Directors, a hotel franchise affiliation has not yet been determined but discussions are being held with a number of national hotel companies.
Allen & O'Hara was selected by the Foundation because of its successful public-private partnership with the university in EDR's replacement of 3,500 beds of housing on the IUP campus over the last four years. Known as the Residential Revival, the housing replacement program was put in place to stimulate new enrollment growth for the university.
In September 2007, the IUP Council of Trustees approved the authorization of a ground lease arrangement for the hotel with the Foundation for IUP. The KCAC hotel project has been in the discussion phase since July 2007, when IUP President Dr. Tony Atwater announced the intention for IUP officials to move forward with construction of a hotel connected to the facility.
The KCAC is a 150,000-square-foot building that will offer the 4,000- to 6,000-seat Ed Fry Arena, the 650-seat Christine Toretti auditorium, athletic department administrative offices and conference facilities.
The hotel project is projected to generate more than $211 million in economic impact for the region in the first decade of operation. Coupled with the economic impact projections for the KCAC, the two properties are projected to generate more than $358 million in economic impact for the regional community.
EDR is one of the nation's largest developers, owners and managers of quality university housing properties. The company also has a 50-year history of developing hotels. EDR will not be the owner of this hotel.
The hotel will start construction as soon as possible during 2010. Allen & O'Hara's development services are subject to finalized project feasibility, executing final agreements with FIUP and obtaining project financing.
About Education Realty Trust
Education Realty Trust (NYSE:EDR) is a self-administered, self-managed real estate investment trust that currently owns, develops and manages 64 high-quality student housing communities in 22 states with 37,827 beds. Led by a team with more than 200 years of collective industry experience, EDR is one of America's largest owners and operators of collegiate student housing. For more information, please visit the Company's website at www.educationrealty.com.
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