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Crescent Hospitality Corporation Signs Three Management Contracts, Portfolio Grows to 25 Hotels
FAIRFAX, Va. - June 8, 2005 -- Crescent Hospitality Corporation, a rapidly growing hotel management company, today announced that it had signed three new management contracts, bringing the company's management portfolio to 25 hotels in less than three years. Concurrently, the company announced that it planned to double in size to as many as 60 hotels over the next 12 to 18 months.

"We are a young, focused and aggressive company which has been quietly building an infrastructure to support a management portfolio of 50 to 60 properties," said Michael George, president and CEO. "The addition of these three properties is an important milestone for the company. We have the critical mass and infrastructure to provide high-quality results for our hotel owners. We believe we can compete effectively with the largest operators from a purchasing, distribution, technology and talent viewpoint, yet are agile enough to provide high-impact, personalized management attention cost-effectively to each of our properties."

The three new hotels include destination, urban and suburban properties:

  • Fairfield by Marriott, Hillsville, Va.--The 74-room hotel is located in Virginia's Blue Ridge Mountains and offers an indoor pool, exercise room and complimentary breakfast.
  • Holiday Inn Tewksbury, Mass.--The 237-room property is located just outside of Boston, Mass. and is Crescent's eighth InterContinental Hotels-branded property. The hotel features an indoor swimming pool, sauna and whirlpool; health and fitness center; and full-service restaurant.
  • Hampton Inn Houston I-10 East--The 90-room hotel is located near Houston's George R. Brown Convention Center, Minute Maid Park home of Houston Astros, San Jacinto Monument/Park and Six Flags amusement/water park.
Crescent has special expertise in "opportunity properties" that require substantial repositioning, including renovation and possible re-branding. As hotel turn-around specialists, the company works closely with exit-strategy focuses ownership groups, including investment banks and real estate investment trusts.

"While many hotels are benefiting from the rebound in the economy, many more are simply not operated well," George commented. "The difference between great and adequate-to-poor-management in this phase of the hotel recovery cycle can equate to substantial dollars to ownership's bottom line. At this stage of the cycle, we find that owners are looking to get the highest possible returns on their hotel investment, and many currently don't feel they are. Our goal is to find those owners who want to optimize their returns and exit strategy."

In 2004, Crescent's 2,600 associates improved the company's managed portfolio's revenue per available room (RevPAR) by 26 percent. For the 2005 first quarter, RevPAR rose 32 percent.

Headquartered in Fairfax, Va., just outside of Washington, D.C., Crescent Hospitality was founded in 2001. The company currently operates approximately 25 upscale and mid-market hotels and resorts with approximately 4,200 rooms in 16 states. The company's management portfolio encompasses independent properties in the full-service, convention and premium limited-service segments under nearly 15 hotel brands, including the leading brands of Marriott, Hilton, InterContinental, Choice and Cendant, as well as independent properties.


Crescent Hospitality

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