Grapevine, Texas; Will Convert to a Fairfield Inn
and Suites Following $700,000 Renovation
|Gulfport, Mississippi May 21, 2004 - Encore Enterprises, Inc., one
of Marriott International’s Franchisees, has increased its portfolio to
18 hotels across eight Southeastern States. Encore Enterprises purchased
the Ramada Ltd. in Grapevine, Texas at DFW Airport and is converting the
80 room hotel into a Fairfield Inn and Suites by Marriott. This is
the 4th acquisition for Encore, and the 5th hotel they have purchased within
the last six months.
In December 2003 Encore acquired its first of 4 hotels, a Fairfield Inn from Musselman Hotels. In January of this year Encore Enterprises completed the acquisition of a Fairfield Inn, a Fairfield Inn and Suites, and a TownePlace Suites by Marriott. These hotels were located in Kentucky and Indiana. The acquisition of the Ramada Ltd. and conversion to a Fairfield Inn and Suites will be Encore’s third Marriott hotel in Texas.
Encore Capital Group is pleased to have placed the equity for this acquisition for Encore Enterprise with one of its private equity sources. Rex Crim, Director of Encore Capital Group, said “this equity placement helps cement another new source of equity capital for Encore Enterprises, Inc., adding to our stable of private and institutional equity sources to fuel the continued growth of Encore’s hotel portfolio”. Encore Capital Group has been instrumental in providing acquisition targets, debt and equity for the expansion of the company. Encore Capital has recently placed $18.8 million of debt financing for its clients with in the last three months.
“We are excited about the growth and development taking place at the DFW Airport and in the City of Grapevine. This acquisition continues the aggressive growth plans we have set for our company. We targeted the Grapevine market because of the absence of Marriott products and realized we had an opportunity to enter an upscale market with moderate to high barriers of entry,” said Dr. Bharat Sangani, Chairman of Encore Enterprises, Inc.
Pineapple Management Services, Inc has been awarded a long term management contract for the hotel. Glenn Pedersen, President of Pineapple, said “Our plan is to immediately close the hotel and initiate a renovation that will take approximately 60 days and cost over $700,000. The renovation will include installation of free wireless internet access, complete re-design of the lobby, breakfast room, meeting room and, front desk area, guestroom drapes and sheers, carpeting, bedspreads, ergonomic chair, upholstered seating, vinyl wall covering, and hallway carpeting and vinyl wall covering, as well as the addition of a Business Library and Market Express offering limited food and beverage service.”
Liam Brown, Marriott’s Senior Vice President for Fairfield Inn, said “Encore Enterprises, with its Pineapple Management Services, is one of our Franchisees and over the years has won numerous National Awards from Marriott International. We are pleased to see Encore Enterprises continue to invest in our Brands and look forward to helping them grow their portfolio of Marriott Brands in the future. ”
P.W. McCallum, Executive Director, of Grapevine Convention & Visitors Bureau said, “We are very pleased to welcome Encore and Pineapple Management to Grapevine. They bring with them an excellent reputation of running fine hotels throughout the country."
About the company:
In December of 2001 Encore Enterprises purchased Pineapple Management Services and 11 Marriott hotels. In less than 2 years the company has grown to 18 hotels in 8 Southeastern States and is poised to continue to increase the size of their portfolio over the next 12-24 months. Senior management has over 267 years of combined hotel experience and has developed over 3.5 billion dollars of real estate. Encore now has 420 employees and continues to identify development and acquisition opportunities that fit into its growth matrix. Pineapple Management Services in 2002 was ranked one of the top 100 Management Companies in the United Sates as ranked by Hotel Business Magazine. Encore Enterprises, Inc. was founded in 1999 by the company’s chairman, Dr. Bharat H. Sangani.
Rex E. Crim
Director of Encore Capital Group
Encore Capital Group
|Also See:||Encore Enterprises Acquires Four Marriots Properties for $18M; Pineapple Management Services Assigned Management Contracts / February 2004|
|Encore Enterprises to Complete in 2004 the Renovation of 9 Marriott Branded Hotels / May 2004|