June 9, 1998
Contact: Tim R. Rose
(804) 982-4848		

U.VA. FOUNDATION COMPLETES PURCHASE OF CAVALIER INN

	The University of Virginia Foundation has purchased the Cavalier
Inn and the Italian Villa Restaurant properties for $5.6 million, Tim R.
Rose, the foundationÕs chief executive officer, said today.
	Last month, the foundation announced its intention to buy the
two buildings and adjoining parking lots at 105-129 N. Emmet St.,
pending completion of environmental and engineering studies.  The final
sales agreement with the Cavalier Inn Limited Partnership was signed
Monday.
	ÒFor the immediate future we will continue to operate under
the Best Western flag and use the Cavalier Inn name,Ó Rose said.
ÒThe Newport Hospitality Group, which manages more than 25 hotels in
Virginia and neighboring states, took over management of the hotel on
Monday.Ó
	The foundation will maintain the current lease arrangement with
the Italian Villa management for the immediate future, Rose said.
	Leonard W. Sandridge, U.Va.'s executive vice president and chief
financial officer, noted that the foundation will continue to pay real
estate taxes on the hotel and restaurants, as with its other for-profit
holdings.
        "We have no immediate plans to change the use of the hotel
operations," he said, "and we consider the existing conference and
meeting space most useful.Ó
        Incorporated in 1993, the U.Va. Foundation is the parent
corporation to several of the University's related foundations,
including those that manage real estate acquisition, the North Fork and
Fontaine research parks, operations at the Boar's Head and Birdwood Golf
Course, and property management services for fraternities and
sororities.
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