Hospitality Properties Buy

Hospitality Properties Trust (HPT Quote) agreed to buy TravelCenters of America from a group of private equity investors led by Oak Hill Capital Partners for $1.9 billion.

Newton, Mass.-based HPT will keep TravelCenters' real estate and transfer its operating business to a unit that will be distributed to HPT's shareholders.

The deal will significantly increase and diversify HPT's investments and revenues and this transaction may provide HPT with additional growth opportunities in the future. The company said the travel center subsector of the hospitality industry in which TA operates "has historically been recession resistant and the TA transaction may provide further stability to HPT's revenues."

HPT expects the deal to add a dime to 15 cents a share to funds from operations. It expects the transaction to close in early 2007.

The record date for the spin out distribution, the details of the lease from HPT to New TA and pro forma financial information for HPT and New TA are expected to be included in SEC filings to be made in connection with the spin out. These filings are currently anticipated to occur within the next 60 days.