News for the Hospitality Executive
Concord Hospitality To Break Ground On Nine Properties
In Next 60 Days;
Has Additional Nine Hotels and More than $500 Million in 2008 Pipeline
|RALEIGH-DURHAM, N.C., March 3, 2008 — Concord Hospitality
Enterprises, one of the nation’s top-ranked hotel developer/ owner/ operators,
today announced plans to break ground on nine properties in the next 60
days and says it expects to open an additional six hotels and pick up a
half-dozen management contracts by the end of 2008. The company has
another nine hotels in its development pipeline for 2008, in addition to
$500 million it intends to reinvest. Total growth for the year is
expected to be more than 3,400 rooms, keeping the company on pace to meet
its goal of doubling its current size to 100 hotels by 2010.
“In 2007, we made some strategic sales and increased our equity to more than $500 million,” said Mark Laport, CEO of Concord. “The sale of a 19-hotel portfolio to Moody National Cos. yielded more than $440 million, in addition to transitioning our portfolio from 80 percent owned and operated properties and 20 percent management contracts, to a 50/50 split between owned and operated properties and management contracts. Our investors indicated they wanted to reinvest those proceeds and parlay our expertise in all three areas into a larger portfolio with a wider geographical reach.
“We expect to continue on this accelerated growth path in the coming years,” he added. “Because we have sufficient funding to achieve our objectives, we don’t anticipate that the current uncertainty in the credit markets will impact our plans. We will continue to focus on areas where we are already established, such at Pittsburgh, New Jersey and Toronto, and new areas, such as Arizona, Texas and North Carolina. We will continue to seek a competitive advantage as well by focusing on Renaissance and Westin properties in markets where there currently is not a luxury boutique hotel.”
Concord’s portfolio predominantly consists of Marriott properties; however, they are approved for Element, Hyatt, Hilton Garden Inn and Hampton as well.
About Concord Hospitality
Concord Hospitality Enterprises Company
|Also See:||Concord Hospitality Enterprises Opens Five New Hotels in the Toronto Area; In One Day! / Aug 2002|
|Concord Hospitality Enterprises Sells 19-hotel Portfolio of Marriott-branded Properties to Moody National Cos. for $440 million; Plans to Build New Hotels with Proceeds / September 2007|