| DALLAS - June 28, 2000-- Milestone Hotel Investments,
Inc. and Regency Hotel Management, Inc. announced today that they have
purchased a portfolio of eight Clubhouse Inn hotels and six Wyndham Garden
Hotels, as well as the Clubhouse Inn brand, from Wyndham International
(NYSE:WYN). Terms of the transaction were not disclosed.
An operating affiliate of Regency will continue to operate the upscale
Wyndham Garden Hotels under a long-term franchise contract with Wyndham.
Wyndham previously announced that it intended to exit the mid-priced hotel
business, including Clubhouse Inn, and focus instead on its core luxury
and upscale Wyndham brand.
�This transaction will allow us to focus on our core upscale and luxury
segments while further strengthening our financial position. Our strategy
is to continue to utilize the sale of non-core assets to strengthen our
balance sheet and brands,� said Fred J. Kleisner, president and chief executive
officer of Wyndham. �We are delighted that Milestone and Regency will operate
the six Wyndham Garden Hotels as franchisees and make a substantial investment
in those properties.�
�The acquisition confirms our strategy of doing larger transactions,�
said Jasen Mark, vice president, acquisitions of Milestone Investments,
Inc. �Over the past fourteen years we have been doing mostly single asset
purchases. Although these deals have been terrific investments for us,
in the future we would like to focus on larger transactions.�
| Milestone and Regency said they would renovate the properties with
estimated capital expenditures in excess of $10 million. �Once our extensive
renovation plan is completed, the Clubhouse Inn hotels will be well positioned
within their respective markets and the Wyndham Garden Hotels will benefit
from improved curb appeal,� said David Sweet, President and CEO of Regency
Hotel Management, Inc.
�Over the next 6 to 12 months we will evaluate the Clubhouse Inn name
and develop a strategic focus for the brand,� said Sweet. In 1998, Clubhouse
Inns of America was ranked number one, in the mid-priced without food and
beverage segment, in the �Top U.S. Hotel Chain Survey� conducted by Business
Travel News. |
|
South Dakota Visitor Industry Awards Tourism
Leaders
Dave Sweet, president and CEO of the Ramkota Companies,
received the Ben Black Elk Award, which honors individuals who have made
tireless and outstanding contributions to the state�s travel industry.
Sweet was appointed to the Governor�s Tourism Advisory Board in 1984 and
served through 1990. His work with board assisted in mapping the future
of South Dakota�s visitor industry. He has served on the Sioux Falls Chamber
and the Sioux Falls Convention and Visitors Bureau advisory boards, as
well as the Sioux Falls Development Foundation. He currently holds a position
on the South Dakota Recreation Trails Advisory Board. Under Sweet�s leadership,
the Ramkota Companies has developed into a business that incorporates three
affiliate companies and one partnership, responsible for managing 48 hotel
properties and eight restaurants with 4,200 employees. |
|
The acquired hotel portfolio consists of 1,873 rooms.
The Clubhouse Inn hotels are located in
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Overland Park, KS, (143 rooms);
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Atlanta, GA (147 rooms);
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Savannah, GA (138 rooms);
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Topeka, KS (121 rooms);
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Albuquerque, NM (137 rooms);
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Valdosta, GA (121 rooms);
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Nashville, TN (135 rooms); and
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Chicago, IL (137 rooms).
The Wyndham Garden Hotels purchased by Regency are in the following locations:
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Kansas City Airport- Kansas City, MO (138 rooms);
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Richardson (Dallas), TX (137 rooms);
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St. Louis, MO (142 rooms);
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Knoxville, TN (137 rooms);
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Omaha, NE (120 rooms); and
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Wichita, KS (120 rooms).
Milestone Investments, Inc., a Minneapolis, Minnesota-based company,
was formed in 1987 to identify, analyze, structure, and arrange equity
financing for investment opportunities in hotel real estate. Milestone�s
hotel portfolio now consists of 36 hotels with over 5,400 rooms.
Regency Hotel Management, Inc. is a wholly-owned subsidiary of
the Ramkota Companies, a privately held, Sioux Falls, South Dakota-based
hotel owner and operator. Through its affiliates Ramkota now owns and operates
62 hotels consisting of over 8,000 rooms.
Over the past fourteen years, Milestone and Regency have jointly acquired
40 hotels. The current Milestone/Regency portfolio consists of 36 hotels
with an estimated value of over $325 million. |
