MILWAUKEE--(BUSINESS WIRE)--Jan. 17, 2001--
Baymont Inns & Suites, a division of The Marcus Corporation (NYSE:MCS), today said that it has launched a number of new initiatives to further solidify the repositioning of the brand in the mid-priced segment and announced a number of bold, new, brand-building initiatives designed to move the brand into a leadership position.
Baymont is one of the first brands to successfully move from the upper economy to the mid-market segment, according to Smith Travel Research, said James Abrahamson, Baymont Inns & Suites president and chief operating officer. Over the past two years, Baymont has transitioned its customer base, resulting in annual ADR growth percentage improvements well ahead of its peer group. Now it's time to build our brand to a level that clearly differentiates us from the other mid-priced market leaders. Our strategy is to be `best in class' both in terms of product and service. There are too many competitors for us to expect to succeed with only a `me-too' product offering.
The brand's Landmark exterior redesign package already has succeeded in upgrading Baymont hotels' curb appeal. New builds or the new Landmark redesign already account for a major portion of the Baymont system today, with the remaining existing properties scheduled for complete re-imaging by year-end 2003. Concurrently, a new interior design package, reflecting a more residential ambiance, is being rolled out. We now are turning our attention to the guest's experience of the hotel and are adding the amenities and design elements that clearly will distinguish us from our competitive set, Abrahamson said.
Baymont's focus is on the high touch, high feel guest areas of the hotel and is adding to the brand's already extensive roster of amenities. Baymont is concentrating on five Bs:
Bed -- We want our guest to have a terrific sleep experience, and are introducing in the second quarter a unique premium bedding concept, that will be implemented in all hotels by year end: an upscale pillow-top mattress cover and new down-lite pillows. We want Baymont to be recognized in the mid-priced segment as a leader in sleep comfort with high quality bedding, Abrahamson noted. According to guests, the bed is the most important part of the hotel room.
Bath -- Baymont will be the first brand in its segment to offer complimentary 12-ounce bottles of spring water. The brand also will provide high quality, more plush towels, as well as introducing a leading shampoo brand and Euro-style, body-shaped soap bars typically found in upscale hotels with double Baymont's room rates.
Business -- Each Baymont room will offer a discrete, comfortable work area, including an oversized desk, ergonomic chair and task lamp, as well as cordless speakerphones in every room, another segment first. Additionally, Baymont will offer high speed, interactive Internet TV and a business center in the lobby. Our goal is to give our business travelers the tools they need to work and the right mix of creature comforts and amenities so they don't feel like they are sleeping in their office.
Breakfast -- Baymont has upgraded its complimentary continental breakfast offering to best in its class with a wider selection of upscale food items. Hotels now will offer new hot items, including French toast and waffles, served on upgraded flatware and dishes, along with a larger 12-ounce coffee cup. Our research found that guests didn't like the smaller portion sizes and limited selections common in the mid-priced market segment, Abrahamson said. We responded accordingly.
Benefits -- We have introduced two major new benefits, a frequent guest loyalty program and a guest satisfaction guarantee that put us on the cutting edge of our segment, he noted.
Guest Ovations, Baymont's new frequent guest loyalty program, is being introduced to consumers the week of January 22. The program is unique in that it offers rewards through three currencies: 1.) Guests can accrue Guest Ovations points for stays at Baymont Inns & Suites, vacation packages at luxury hotels or for merchandise discounts and more. The program includes merchandise partners such Barnes & Noble, Brinker International Restaurants (Chili's, Macaroni Grill), Darden Restaurants (Olive Garden and Red Lobster), Diners Club, The Home Depot, iDine and Sam's Club. Points may be shared between significant others for faster and easier point accrual. The program has no blackout dates and allows for members to redeem awards on line immediately. 2.) If free stays and merchandise are not needed but airline miles are, Baymont offers the option of earning frequent flyer miles instead with airline partners such as American, Delta, Midwest Express and Northwest. 3.) Or, Guest Ovations members can participate in American Express' Membership Rewards(R) Bonus Points program through a special partnership agreement with Baymont.
Guest Ovations will allow us to build a much more meaningful relationship with our guests and provide the kinds of rewards that will attract and retain their loyalty. Our program provides great flexibility and allows our guests to use their points interchangeably with our program partners, which places our program in the upper tier of our competitive set.
Baymont also has enhanced its reservation system to offer seamless connectivity with the top four Global Distribution Systems, which already is having a positive impact on travel agent bookings. Later this year, the brand will add a new reservation platform to provide two-way connectivity to its inns.
To wrap all of the new programs together, Baymont is preparing the launch of a distinctive 110% guest satisfaction guarantee. Now that our hotels, amenities and service standards are becoming reality, we want to back them up with a truly innovative guarantee, said Abrahamson. Under the guarantee, a dissatisfied guest will receive their night's stay for free, plus a coupon for a 10 percent discount on their next stay at any Baymont Inns & Suites hotel. We studied all the guarantees in the industry and believe they accomplish two very important things: they assure guests that they can expect their hotel stay to be without incident, and they empower employees to immediately fix any problem that may arise.
Our guarantee goes one step further -- it invites the guest back, he said. We believe this powerful guest guarantee, combined with our other programs, separates us from the other premium, limited-service brands which, we believe, will pay off in higher rate, occupancy and customer loyalty.
Development
Abrahamson said that Baymont, which recently announced the signing of a franchise agreement for its 200th property, intends to continue to aggressively expand its brand nationwide. We believe that the leadership brands, like Baymont, will continue to develop successfully as demand continues to increase and the rate of supply growth slows. We soon will announce special loan-assistance programs and several other unique incentives that will make Baymont even more attractive to the development community.
Baymont development plans currently call for having 500 properties open or under development over the next five years. We will continue to be responsible franchisors. We currently have the critical brand mass to provide the distribution and marketing support to build occupancy, but we do not have the impact issues faced by the other leaders in our segment. As a result, we believe our brand will be more attractive to franchise developers over the next five years.
Abrahamson also pointed out that Baymont will continue to develop new properties for its own portfolio, which is unique for a major brand in the mid-priced market segment. We will reshape our portfolio over the next few years by selectively selling hotels and reinvesting in more urban and brand strategic locations, he said. We have the utmost confidence in the returns our brand can produce and are putting our money to work side-by-side with our strategic development partners and franchisees to underscore that confidence.
Baymont Inns & Suites is owned, operated and franchised by the Milwaukee-based Marcus Corporation. Headquartered in Milwaukee, Wis., The Marcus Corporation is comprised of four divisions: limited-service lodging, movie theatres, hotels/resorts and restaurants. The company currently operates or franchises 175 Baymont Inns & Suites in 30 states, and a total of seven Woodfield Suites in Illinois, Wisconsin, Colorado, Ohio and Texas; 482 movie screens in Wisconsin, Ohio, Illinois and Minnesota, and one family entertainment center in Wisconsin; three hotels and a resort in Wisconsin, one hotel and a resort in California, one hotel in Minnesota and one hotel in Missouri; and 27 KFC and 3 KFC/Taco Bell 2-in-1 restaurants in Wisconsin. For more information, visit the company's web site at www.marcuscorp.com.
To make reservations for any Baymont Inns & Suites location or to receive a directory of hotels, call toll free 1-877-BAYMONT (1-877-229-6668) or visit www.baymontinns.com. Visitors to the Web site can use the new Click 1-2-1 technology for an immediate connection with a Baymont customer service representative.
Certain matters discussed in this press release are forward-looking statements intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements may generally be identified as such because the context of such statements will include words such as the Company believes, anticipates, expects or words of similar import. Similarly, statements that describe the Company's future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties, including, but not limited to, the following: (i) the Company's ability to identify properties to acquire, develop and/or manage and continuing availability of funds for such development; (ii) the Company's ability to attract potential partners to assist in the acquisition and/or development of properties; (iii) the limited-service lodging division's ability to attract and retain quality franchise operators and to effectively execute its Baymont repositioning strategy; (iv) continuing consumer demand as a result of general economic conditions with respect to the hotels and resorts and limited-service lodging divisions; (v) continuing availability, in terms of both quality and quantity, of films for the theatre division; and (vi) competitive conditions in the markets served by the Company. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
CONTACT: Daly Gray
Jerry Daly or Carol McCune, 703/435-6293 (Media)
or
The Marcus Corporation, Milwaukee
Doug Neis, 414/905-1100 (Investors)
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