|MIAMI - Dec. 3, 1998--Pelican Properties International Corporation
(OTC BB:PELP), through its wholly owned subsidiaries Ohio Key I, Inc. and
Ohio Key II, Inc., is pleased to announce the acquisition of the Palmer
Inn and the Chamberlin Hotel located in Princeton, N.J. and Hampton Roads,
The Palmer Inn was purchased for $7,500,000 with $2,500,000 in cash
and the balance held in two mortgages totalling $5,000,000. The Chamberlin
Hotel was purchased for $5,350,000 with $2,350,000 in cash and the balance
held in a mortgage totaling $3,000,000. Both hotels are expected to generate
Located on approximately six acres, the Palmer Inn is a 106-room facility
that caters to corporate professionals as well as to other travelers seeking
close proximity to Princeton, N.J. Improvements at the Palmer Inn include
five meeting/banquet rooms, a business center with computer stations, fax
and copier equipment, a pool, and an exercise room complete with a sauna.
Additionally, the hotel receives substantial lease revenues from its sole
long-term commercial tenant, Charlie Browns Restaurant, a regionally recognized
franchise. The Company projects the Palmer Inn to generate total revenues
for calender year 1998 that exceed $2,600,000. The Palmer Inn is on the
web at www.bestwestern.com.
Mr. John Knorr, Chairman of Pelican, stated, "By virtue of these acquisitions
along with the previously announced acquisition of the McLure
House Hotel on October 15, 1998, the Company has fulfilled all
elements of its established 1031 exchange, which includes requirements
for replacement of price, debt, and cash. We believe these two additional
purchases add significant value to the Company and further confirms our
ongoing commitment to building a portfolio of established and unique hotels
located throughout the continental U.S."
|Listed on the National Register of Historic Places, the Chamberlin
Hotel is a 283-room landmark located on the Chesapeake Bay. Due to the
hotel's size and offerings, which include a banquet room and large meeting
areas, the Chamberlin is one of the largest facilities in the Tidewater
area of Virginia. During this past summer, the Chamberlin received over
$1 million in renovations, and the Company plans to continue restoration
efforts over the next four years. The Company projects the Chamberlin Hotel
to generate total revenues for calender year 1998
that exceed $3,000,000.
About Pelican Properties International Corp.: Based in Miami, Pelican
Properties International Corp. is a publicly traded real estate investment
company that seeks to acquire established full-service, high-quality independent
hotels and resorts with a strong emphasis on the historic segment of the
Statements contained in this press release that are not
based upon current or historical fact are forward looking in nature. Such
forward looking statements are subject to risks and uncertainties, which
could cause actual results to differ materially from estimated results.
Such risks and uncertainties are detailed from time to time in the Company's
filings with the Securities and Exchange Commission.