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Concord Hospitality Currently Has 15 Hotels Under Construction,
Aggregating  2,146 rooms and Valued at $350 million
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RALEIGH-DURHAM, N.C., November 10, 2008 — Concord Hospitality Enterprises, one of the nation’s top-ranked hotel developer/owner/operators, today announced that it has broken ground on its 17th property of 2008, bringing to 15 the number of hotels the company currently has under construction.  All of the hotels are premium brands affiliated with the world’s leading franchisors and are slated to open between now and year-end 2009.  Two of the properties, the SpringHill Suites by Marriott-Waukegan, Ill., and the Fairfield Inn and Suites by Marriott Pittsburgh, Pa., opened in August.

The remaining 15 under-construction hotels, aggregating more than 2,000 rooms and valued at nearly $350 million, put the company on pace to double the size of its portfolio to more than 100 owned and managed within the next three years. 

“We did our first 50 hotels in 20 years; we hope to do our next 50 in three,” said Mark Laport, Concord Hospitality president and CEO.  “Our accelerated growth will be through a combination of new development, acquisitions/repositionings and third-party management contracts.  Our development pipeline is the strongest it’s ever been, with 15 being the largest number of properties we’ve had under construction at one time.  Even with a slowing economy and a troubled credit market, we have the ability to move projects forward.  We have available equity to invest in new properties, in addition to the capital to develop, acquire and reposition/renovate hotels, and we have long-standing relationships with lenders who know us and know our capabilities.”

Laport noted that the 15 under-construction hotels will produce a portfolio with a wider geographical reach.  “In 2008, we have added or broken ground on properties in New York, Illinois, Maryland, Alabama and Texas and will break ground in North Carolina by the end of the year.  We are gradually increasing our geographic diversification, developing in high-growth regions, like the southwest, in order to spread our business risk across a wider area and lessen our exposure to any one regional economy.  As always, we are focusing on markets with solid demographics and high barriers to new supply. 

“We continue to aggressively seek additional sites for hotel development, both domestically and overseas,” he said.  “With the continued globalization of the hotel industry, we see significant international growth opportunities, especially as U.S.-based brands like Marriott, Hilton, Starwood and Intercontinental Hotel Group seek to expand their presence there.”

The 15 hotels currently under construction in the Concord pipeline are:


Projected
Opening 
Location - Hotel Brand
 # of Rooms
Dec-08  Raleigh, N.C.  - Renaissance  229
Jan-09  Hamilton, Ohio  - Courtyard conversion 120
Mar-09  Arlington, Texas - Hilton Garden Inn  132
May-09 Plano, Texas - Residence Inn 102
May-09  Plano, Texas  - Fairfield Inn & Suites 104
Jun-09  Reading, Pa. - Courtyard 135
Jun-09  Cumberland, Md. - Fairfield Inn & Suites 108
Jul-09  Webster, Texas - Springhill Suites  121
Sep-09  Durham, N.C. - Courtyard 82
Aug-09  San Antonio, Texas  - Courtyard 124
Aug-09  San Antonio, Texas - Residence Inn 132
Aug-09  Houston, Texas  - Springhill Suites 156
Nov-09  Meadowlands, N.J. - Springhill Suites  216
Jan-10  Birmingham, Ala. - Renaissance 261
Fall 09  Pittsburgh, Pa. - Courtyard 124
                                                                                                                             Total Rooms 2,146
 

Laport added that new development is just one leg of a multi-pronged growth strategy.  With the recently announced signing of contracts with national real estate developer Jackson-Shaw, to manage two hotels in an under-construction, multi-use development in Dallas, Concord’s portfolio of hotels reached another important milestone.  Third-party management contracts now account for half of the company’s total portfolio of more than 50 hotels, compared to an 80/20 mix just a few years ago. 

“Our existing owners have always been an important source of new management contract opportunities for us,” Laport said.  “Now we have taken a more proactive approach, looking for owners who have or wish to build quality assets and need high-level technical and pre-opening services to help in the development, opening and operating of hotels.”

About Concord Hospitality
Concord Hospitality Enterprises Company, an award-winning hotel management and development company based in Raleigh-Durham, N.C., manages 50 hotels and with over 6,000 guest rooms in 11 states and two Canadian providences under such well-known brands as Renaissance, Marriott, Courtyard by Marriott, Residence Inn by Marriott, Fairfield Inn and Suites by Marriott, SpringHill Suites by Marriott, and Hampton Inn and Suites, and an independent boutique hotel.  Formed in 1985, the company was recently listed as one of the top management companies in the nation by Hotel & Motel Management.  Concord properties are some of the most awarded hotels in the country, having won nearly 30 honors in the past two years alone.  For more information, visit www.concordhotels.com.

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Contact:

Concord Hospitality
www.concordhotels.com
 

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Also See: Concord Hospitality Opens a New Look 120-room Springhill Suites in Waukegan, Illinois; Concord Co-designed the Brand’s Contemporary, Boutique-style Redesign in Partnership with Marriott / August 2008
Concord Hospitality Enterprises Opens Five New Hotels in the Toronto Area; In One Day! / Aug 2002
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