SPOKANE, Wash., April 30, 1998 - Cavanaughs
Hospitality Corporation (NYSE: CVH) today announced that it has
signed an agreement to purchase the 393 room Olympus Hotel and Conference
Center in Salt Lake City, UT. The sale is expected to close this June,
subject to customary closing conditions. Cavanaughs plans to re-flag the
hotel under the Cavanaughs brand upon closing. Upon closing of this acquisition
the total number of hotels owned by the company will be 14, with this being
the first in Utah. This acquisition follows on the heel of this month's
acquisition of the company's first Oregon hotel, Cavanaughs Hillsboro Hotel,
Portland's high tech corridor.
The 393 room, dual-tower hotel is located in downtown Salt Lake City, the highest hotel demand area of the city, and is highly visible from many access points, including Interstate 15. Salt Lake City is the largest city in the state of Utah, which has the second highest growth rate of any state in the nation. There are ten ski resorts within sixty miles of Salt Lake City, including such world class resorts as Park City, Alta, Snowbird, and Deer Valley in addition to twelve national parks and monuments in the region attracting an increasing number of tourists. Significant investments in ski infrastructure continue in preparation for the 2002 Winter Olympic Games. A light rail system is currently under construction as well, and passes adjacent to the property.
Donald K. Barbieri, President and CEO of Cavanaughs Hospitality Corporation, said, "This property is an excellent example of our acquisition strategy to buy full service hotels at prices that are below replacement cost and have potential for high returns and appreciation. Salt Lake is experiencing an improving leisure, corporate, and convention travel market and will allow us to continue moving our market segments around the Northwest U.S."
In addition to its 393 guest rooms, the Olympus Hotel and Conference Center has approximately 12,800 square feet of meeting space, two restaurants and two lounges, as well as a year round outdoor heated pool, jacuzzi, exercise facility, barber shop, and gift shop. The hotel underwent a $1.6 million renovation in 1997, and Cavanaughs officials said they plan to spend additional funds to renovate rooms and common areas. Barbieri added, "The renovation of this property will allow us to capture the business and leisure traveler that frequents our current Northwest locations. They will be able to continue to enjoy the special guest benefit programs, airline mileage program, and guest amenities that are offered through our Cavanaughs chain."
Downtown attractions in Salt Lake City include the Salt Palace Convention Center, which has over 300,000 square feet of exhibit and meeting space, and has planned an expansion, with demolition due to start this fall, which will increase the facility by 142,700 square feet. Salt lake City expects increased convention traffic, as well as significant visitor traffic, converging to the city for the 2002 Winter Olympic Games. Also in downtown are the Delta Center, home of the NBA's Utah Jazz, and Temple Square, a beautifully landscaped 10-acre site that is Utah's number one tourist attraction.
Upon purchasing this property, Cavanaughs Hospitality Corporation will serve the Northwest with 3,105 full service hotel rooms in 14 hotels, including 35 restaurants and lounges and 147,300 square feet of meeting space. In addition, CVH provides entertainment services through GB Select-a-Seat, a 20 outlet computerized ticket company, and GB Presents, a Broadway and special event presenting company. CVH also manages 3.1 million square feet of third party property management, 2,200 residential units, and owns 590,000 square feet of office and retail space.
With the exception of historical information, the matters discussed in this news release include "forward-looking statements" within the meaning of the federal securities laws and are qualified by cautionary statements contained herein and in CVH's filings with the Securities and Exchange Commission. All financial numbers are subject to auditors review.