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 The Equity Firm KSL Capital Partners
Acquiring ClubCorp, Inc.
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October 10, 2006- DENVER - KSL Capital Partners (KSL), a leading private equity firm, today announced that it has entered into an agreement to acquire ClubCorp, Inc., the world leader in delivering premier golf, private club, and resort experiences. ClubCorp’s portfolio of assets includes nearly 170 clubs and three renowned resorts. The acquisition is scheduled to close by year-end, immediately following ClubCorp’s sale of Pinehurst Resort. These two transactions, which are subject to customary closing conditions, have an aggregate transaction value of approximately $1.8 billion. 

Michael Shannon, Managing Director of KSL Capital said: “ClubCorp is the preeminent operator of clubs in the world, and has an unparalleled collection of assets in markets supported by strong demographic trends. ClubCorp fits perfectly into the business sectors that our private equity fund targets. We are very excited to be involved with ClubCorp and its management team.” 

Among ClubCorp’s nationally recognized resort and golf properties are Barton Creek Resort & Spa in Austin, Texas (site of two Canadian Tour events); and The Homestead in Hot Springs, Virginia (America’s first resort founded in 1766); Firestone Country Club in Akron, Ohio (site of the World Golf Championships – Bridgestone Invitational); and Mission Hills Country Club in Rancho Mirage, California (home of the Kraft Nabisco Championship);. The more than 60 business clubs and business and sports clubs include the Boston College Club; City Club on Bunker Hill in Los Angeles; Columbia Tower Club in Seattle; Metropolitan Club in Chicago; and the City Club of Washington, D.C. 

“This sale provides the desired liquidity for ClubCorp shareholders,” said John Beckert, ClubCorp CEO. “More importantly, KSL Capital Partners brings expertise and capital that will enable ClubCorp to expand the enterprise and create new business opportunities to build on our past success. We will continue to lead the private club industry – it is what we have always done and no one does it better.” 
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KSL Capital Partners Completes Final Closing of Private Equity Fund
with Total Capital Raised in Excess of $1 Billion

DENVER, CO (September 7, 2006) - KSL Capital Partners (KSL), a private equity firm, today announced that it has completed the final closing of KSL Capital Partners II, L.P. (the Fund), which will specialize in investments in travel and leisure businesses. The committed capital to the Fund is in excess of $1 billion, significantly in excess of the original target amount of $750 million. Investors in the Fund include public and private pension funds, foundations, endowments, fund of funds and high net worth individuals. KSL Capital Partners was founded by Michael Shannon and Eric Resnick in 2004.

Michael Shannon commented, "This new fund will utilize the same investment principles we have successfully used over the past 20 years -- targeting investment opportunities that have operational upside through enhanced marketing, capital expenditures and development. We are very grateful for the interest that both new and old investors have shown in this new fund."

The Fund recently completed its first investment, the acquisition of Rancho Las Palmas Resort & Spa, a 444-room resort in Rancho Mirage, California.

KSL also announced today that Bernie Siegel and Marty Newburger have joined the firm as principals. Siegel was previously Chief Investment Officer of Destination Hotels & Resorts, the resort management arm of Lowe Enterprises. Newburger was previously a senior investment banker with both Citigroup and Deutsche Bank, where he focused on advising lodging, leisure and real estate investment banking clients.

Co-founder Eric Resnick said, "Bernie Siegel and Marty Newburger are tremendous additions to the KSL team. Together, they bring more than 30 years of experience in the travel and leisure industry to the firm. Bernie has worked extensively with owners and operators of hotels and resorts, while Marty has broad expertise in advising clients on investment strategy, structuring and financing. We are very pleased that each has joined us."

KSL's team of dedicated investment professionals is based in Denver. In addition to founding partners Michael Shannon and Eric Resnick, partners in the firm include Steven Siegel, Eric Affeldt, Peter McDermott, Bernie Siegel and Marty Newburger. 

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Citigroup Corporate and Investment Banking acted as M&A advisor, and Simpson Thacher & Bartlett LLP is acting as legal advisor to KSL Capital Partners. Goldman Sachs & Co. acted as M&A advisor, and Haynes and Boone, LLP is acting as legal advisor to ClubCorp. 

About KSL 

KSL Capital Partners is a private equity firm specializing in travel and leisure enterprises in five primary sectors: hospitality, recreation, clubs, real estate and travel services. The investment in ClubCorp falls within each of these sectors. KSL Capital Partners has offices in Denver, Colorado and La Quinta, California. For more information, please visit www.kslcapital.com.  Notable investments made by the principals of KSL include: 

  • Vail, Beaver Creek, Breckenridge and Keystone Mountain Resorts 
  • La Quinta Resort & Club and PGA West in La Quinta, California 
  • Doral Golf Resort & Spa near Miami, Florida 
  • Grand Wailea Resort Hotel & Spa on Maui in Wailea, Hawaii 
  • Arizona Biltmore Resort & Spa in Phoenix, Arizona 
  • La Costa Resort and Spa in Carlsbad, California 
  • Hotel del Coronado near San Diego, California 
  • Rancho Las Palmas Resort & Spa in Rancho Mirage, California 
About ClubCorp 

Founded in 1957, Dallas-based ClubCorp and its affiliates own or operate nearly 170 golf courses, country clubs, private business and sports clubs, and resorts. ClubCorp's annual gross revenue for 2005 was $1.04 billion. The company’s 18,000 employees serve the nearly 200,000 member households and 200,000 guests who visit ClubCorp properties each year. For more information, please visit www.clubcorp.com. 

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Contact:

KSL Capital Partners 
100 Fillmore Street, Suite 600
Denver, CO 80206
(720) 284-6400
http://www.kslcapital.com/

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Also See: Pinehurst Resort Excluded From Possible Sale By its Parent Company ClubCorp / May 2006
KSL Resorts Moves its Focus to Acquisition and Development Opportunities Following Sell to Hilton of Management Contracts for Arizona Biltmore, Grand Wailea and La Quinta Resort & Club / January 2006
Two Bidders Emerge for Vail Resorts; Might Dismantle the Company and Sell its Assets Piecemeal / Aug 2004

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