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Will Renovate and Rebrand MainStay Suites Resort |
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Lauderdale, Florida (January 6, 2003) � In step with its strategy to capitalize
on unique investment opportunities in this down market, REH Capital Partners,
LLC, announced today the acquisition of the 144 unit Lake Cecile Suites
and Resort in Orlando, Florida. The acquisition marks the first of
several planned acquisitions by REH Capital Partners in the upcoming months
in �turn around� hotel investment opportunities throughout the United States.
REH, through a private investment consortium, purchased the property out
of foreclosure from an Arizona based lender for $4,700,000 representing
a deep discount from pre-�911� market pricing and about a 60 percent discount
to full replacement cost. The property will undergo a complete renovation
and refurbishment, which is scheduled for completion in April of 2003 at
an estimated cost of approximately $1,600,000. Upon completion of
the renovation, the resort will be affiliated with Choice International
Hotels as a MainStay Suites Resort and will be one of the first ever conversions
of an existing property to the MainStay Suites brand in the United States.
Kelco Management and Development, based in Westin, Florida, will operate
the property.
�With this acquisition we believe we have found a tarnished gem whose luster we believe we can readily restore�, says Frank Nardozza, Chairman of REH Capital Partners and former National Hospitality Practice Leader for KPMG Consulting. He added, �we were able to lock in the pricing for the property back in March of 2002 based on immediate post �911� performance and we patiently waited and worked through many issues with the seller to finally reach the finish line last week�. Comments Jim Fitzgerald, Chief Investment Officer for REH Capital Partners, �we chose to affiliate with MainStay Suites, the extended stay brand of Choice Hotels International, since we felt we needed to get across the message that this property is more than a mix of standard sized hotel rooms and suites, and is different in that it offers very large family villa type units, all with full kitchens, ranging in size from 500 to 825 square feet per unit.� Legg Mason Real Estate Capital out of Los Angeles, California provided acquisition and renovation financing for the property. REH Capital Partners, acting as principal through a private investment consortium that includes Miami based investors Ezra Katz of Aztec Leisure Corp. and Enrique Dillon of Lake Cecile Hotel Investors, LLC, provided equity funding for the deal. Lake Cecile Suites and Resort is located at the intersection of State Road 535 and Highway 192 in the heart of the Central Florida tourism corridor and just minutes from the Walt Disney World Attractions and Universal Studios Orlando Resort. The 10-acre resort consists of one and two bedroom suites, all with full kitchens and most with log burning fireplaces, situated in a scenic resort setting along the shores of Lake Cecile. The Resort was originally developed as a Marriott Residence Inn. The Resort features a lakeside sandy beach, wooden docks, a sun deck overlooking Lake Cecile, fishing, water sports, a playground, video game room, basketball and volleyball courts, a heated swimming pool and Jacuzzi, pool bar and snack bar, and many other resort amenities. REH Capital Partners, LLC is a private investment and business advisory
services firm headquartered in Fort Lauderdale, Florida with offices in
Stamford, Connecticut and New York City. REH Capital Partners makes
principal investments in real estate and hospitality assets and portfolio
companies as well as provides strategic investment advice, transactional
services, asset management services, and strategic consulting services
to a wide range of public and private sector clients.
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| Contact:
Mr. Francis J. Nardozza Chairman & CEO Broward Financial Centre, Ste. 1800 500 E. Broward Boulevard Fort Lauderdale, FL 33394 Tel: 954 332 2360 Fax: 954 332 2361 Email: [email protected] |