Hotel Investors Deals Collapse

NEWPORT BEACH — Hotel Investors Trust, the target of separate buyout bids from a Newport Beach investment group and a Japanese company, said Monday that both prospective deals have fallen through.

The bids were made by First West Capital Corp. of Newport Beach, which offered $5.25 per share, or $63.5 million, and Park Plaza Inc., an affiliate of Japan’s EIE International Corp., which bid $5 a share, or $61 million.

The Woodland Hills real estate investment trust that owns 38 hotels in the United States and its management company, Hotel Investors Corp. of San Diego, said the bid was allowed to lapse because of concerns about First West’s ability to complete the deal.

Hotel Investors said EIE has said it was withdrawing its proposal because it doesn’t want to get into a bidding war with First West. However, Hotel Investors said it is reviving talks with the Japanese firm and has extended the closing date for bids to Dec. 28, 1990. EIE had previously agreed to pay $152.2 million to buy 27 hotels owned and operated by Hotel Investors.

Hotel Investors said its scheduled annual meeting Friday will be postponed. Shareholders were to vote on the bids at that meeting before the proposals were withdrawn.