|DALLAS - April 6, 1999--Crown Group, Inc. (Nasdaq:CNGR)
today announced that HomeStay Lodges I, Ltd., which is 80% owned by the
Company, has opened its first two extended-stay lodging facilities.
The recently-opened HomeStay Lodges contain 120 units each and are strategically
located near colleges, industrial parks, hospitals and U. S. Navy bases
in the Pensacola, Fla., area. Each HomeStay Lodge studio/efficiency unit
averages 288 square feet in size and provides
"The facilities were designed for a target niche in the lodging industry
which is not adequately served by other extended-stay chains," noted Edward
R. McMurphy, President and Chairman of Crown Group, Inc. "They are designed
to offer quality accommodations for
"We expect HomeStay Lodge guests primarily to include business travelers,
blue-collar workers on temporary assignments, people between domestic situations,
and persons relocating or purchasing a home," continued McMurphy. "The
lodges will be located near areas where the employment base consists largely
of service, retail, blue-collar, military, support, construction, entry-level
or seasonal jobs, or where large numbers of pensioners reside. This target
market should view the low rates and guest services offered at a HomeStay
The HomeStay Lodges are being managed by The Windham Company of Pensacola,
Fla., Windham has managed, developed, renovated and constructed lodging
facilities throughout the Southeast during the past 25 years. The company
has operated both independent and
"The HomeStay Lodges in Pensacola are located near the various U.S. Navy facilities in the area, the main campus of the University of West Florida, the Ellyson Industrial Complex and a planned Baptist Hospital Center", noted Robert T. Windham, Chairman and Chief Executive Officer of The Windham Company. "The extended-stay segment of the lodging industry is growing very rapidly, and HomeStay Lodges have been designed to compete at the `budget' level within this segment, where competition is limited."
"We have identified a number of locations for future extended-stay facilities, primarily in the Southeastern U. S., where demographic and market analyses support the economics of the HomeStay lodging concept," stated Edward McMurphy. "How rapidly we expand the chain will depend upon the success of the initial two lodges, and we have not acquired any property for additional facilities at this time."
Crown Group, Inc. is a publicly traded buy-out firm which seeks to enhance
shareholder value through the acquisition, development and operation of
small-cap companies with significant growth potential. Crown Group currently
owns (i) 100% of Car-Mart and 80% of PAACO
Crown Group, Inc. is headquartered in Dallas, and its common stock is traded on Nasdaq under the symbol "CNGR".
This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, changing economic conditions, changes in interest rates, continued acceptance of the Company's products and services in the marketplace, competitive factors, dependence upon lenders, and other risks detailed in the Company's periodic filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
|Also See:||Crown Group Enters Hospitality Industry Via Extended-Stay Hotel Venture / May 1998|
|Crown Group, Inc. to Open Casino Colonial in El Salvador / March 1999|