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Hostmark Hospitality Group Well-Positioned For Growth, Despite Sector
Downturn Company’s Experience with Distressed Properties Will Be Key



Schaumburg, IL, March 6, 2009— Hostmark Hospitality Group, one of the nation’s largest third-party hotel management companies, anticipates that its quantity of management contracts will increase significantly this year as lenders and owners turn to them to manage the growing number of distressed properties in the marketplace. A successful third- party management firm for over 40 years, Hostmark has been selected to provide services in more than 130 hotel bankruptcies, foreclosures, and receiverships.

“In the current economic climate, it is imperative for owners of distressed hotels to retain an experienced, focused and aggressive management team,” says Robert Cataldo, President /COO, Hostmark Hospitality Group. “Hostmark’s reputation as the industry expert at stabilizing and turning around underperforming properties comes from our wealth of experience in implementing vertically integrated solutions that quickly maximize the potential of these assets. The confidence that banks and mezzanine lenders have shown in Hostmark’s ability to add intrinsic value to distressed assets is borne out by the roster of properties we have been hired to manage,” Cataldo adds.  

In the past year alone, Hostmark has operated or transitioned seven properties in foreclosure, receivership or bankruptcy, including high profile properties such as : the historical ship the Queen Mary, Long Beach, CA; Hotel Blake, Chicago, IL; Cortina Inn, Rutland, VT; Holiday Inn, Collinsville,IL; and the former Renaissance Hotel (now the President Abraham Lincoln Hotel and Conference Center); Springfield, IL. 

Cataldo notes that because Hostmark has had no turnover among its key executives for nearly two decades, the firm has created a reliable and stable management team that can provide oversight for any property type. “Hostmark executives are among the hospitality industry’s most experienced and respected leaders. Our team’s extensive legal background and experience with distressed properties has made Hostmark the top choice for putting underperforming properties back on track.”

Peter Connolly, Asset Manager for the mezzanine lender currently in possession of the Hotel Blake concurs with Cataldo: “Because of their record of successfully handling hotels in trouble, Hostmark Hospitality Group was our obvious choice when we were selecting a management firm for the Hotel Blake.”  

Throughout its 40+ years in operation, Hostmark has become expert at navigating the issues facing distressed properties including:

  • Stabilizing labor and other key costs
  • Identifying critical issues and implementing key management functions
  • Preserving asset value through strategic management
  • Improving value through brand maximization 
  • Dealing with major franchises in a foreclosure or default situation
  • Implementing short and long term revenue enhancement measures 
  • Designing  and implementing turnaround techniques and formulating exit strategies
“Clearly our industry finds itself at a crossroads,” Cataldo notes. “However, these difficult times can create opportunities for newer operators, and Hostmark is here to provide them with our experience and expertise so that they can transition these distressed assets into successfully operating properties.”

About Hostmark Hospitality Group: 
Hostmark Hospitality Group (www.hostmark.com) is a leading hospitality management firm operating upscale fullservice hotels, resorts, focused service hotels and restaurants worldwide. Headquartered in Schaumburg , IL , with Development offices in Boulder , CO , and Cairo, Egypt, Hostmark Hospitality Group is an award winning operator of Marriott, Hilton, Intercontinental Hotels Group, Starwood and Wyndham Hotels. Under consistent leadership spanning more than four decades, Hostmark Hospitality Group has launched its own boutique concept Amalfi (www.amalfihotelchicago.com), as well as other luxury independent hotels and resorts. Hostmark Hospitality Group has a proven long-standing reputation for performance-driven results through superior operating and asset management.
 

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Contact:

Hostmark Hospitality Group
Brian Tkac, Vice President
847.517.9100
btkac@hostmark.com 
 http://www.hostmark.com

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