SALISBURY, Md., January 3, 2003 � Marshall Management, Inc., a leading
mid-sized management company, and Toronto-based AFM Hospitality Corporation
(TSX: AFM) today announced that the companies have jointly agreed to terminate
a previously announced merger. Privately owned Marshall Management
currently operates a portfolio of 20 three- and four-star hotels and resorts.
AFM Hospitality operates or franchises more than 200 hotels in North America.
�The trend toward consolidation among management companies had prompted
us to examine alternative strategies that might benefit both the company
and our hotel owners,� said Charles L. Marshall (Chuck), CHA, Marshall
Management chairman & CEO. �After the merger was announced, we
sat down with our owners to discuss the merger details. But the more
we talked to our owners, the clearer it became that there continues to
be significant demand for mid-sized management companies who can provide
a high level of personal attention to each property.
�We learned that while there is a need for larger organizations like
AFM Hospitality, there is an equal need for mid-sized organizations like
Marshall Management,� he noted. �A significant number of ownership
groups and individual owners prefer mid-sized organizations that have the
critical mass to provide sophisticated marketing and operating systems,
yet are small enough where senior management can be intimately involved
in each property. After lengthy discussions within the company, we
concluded that Marshall Management will provide better service to our owners
as an independent mid-sized management company, rather than as part of
a much larger organization.�
Marshall said that terminating the agreement was a difficult decision.
�We have great respect for the management at AFM Hospitality. They
have a clear vision, and we wish them well in their expansion endeavors,�
he commented. �We have concluded, however, that being part of a large
organization is not where we should go.�
Marshall Management currently manages 20 full- and limited-service hotels
in nine states. �We have strengthened our senior management team
over the past 12 months, and are well positioned to expand our leadership
role in the mid-sized management company segment,� said Michael Marshall,
president. �We have the depth and capacity to expand on a controlled
basis and currently are reviewing and updating our strategic plans, which
we expect to announce within the next month. We are in sound financial
condition with the ability to co-invest with owners when appropriate, and
expect to expand in a focused fashion in the coming year. At the
core will be the personal level of service our senior management offers
hotel owners that has become the hallmark of Marshall Management.�
Marshall
Management, founded in 1980, has special expertise in operating three-
and four-star branded hotels and resorts, averaging 100 to 400 rooms in
urban and central business districts, suburban and resort locations.
In addition, the company has a proven track record managing independent
resort properties. Located in Salisbury, Md., the company has managed
a wide array of hotels under the Hilton, Sheraton, Six Continents, Choice,
Cendant and other leading brands. Despite one of the most difficult
operating environments in hotel industry history, the company�s management
portfolio is expected to post a revenue per available room improvement
in 2003.
Marshall Management, Inc.
Current Management Portfolio
Delaware
The Marina Suites - Dewey Beach
Florida
Holiday Inn - Palm Beach Airport
Indiana
Ramada Inn Lebanon/Indianapolis
Ramada Inn Plant City
Kentucky
Holiday Inn - Capital Plaza, Frankfort
Louisiana
Quality Suites - Baton Rouge |
Maryland
Comfort Inn - Salisbury
Fenwick Inn - Ocean City
Hampton Inn - Salisbury
Hopkins Inn - Baltimore
Paradise Plaza Inn - Ocean City
Sleep Inn - Salisbury
Grand Hotel & Conference Center - Ocean City
Ramada Inn - Towson
North Carolina
Hatteras Island Resort - Rodanthe
Virginia
Natural Bridge Attractions
Natural Bridge Inn and Conference Center
Ramada Inn South Fredericksburg |
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