DALLAS--(BUSINESS WIRE)--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.
The acquired hotel portfolio consists of 1,873 rooms.
The Clubhouse Inn hotels are located in Overland Park, KS, (143 rooms); Atlanta, GA (147 rooms); Savannah, GA (138 rooms); Topeka, KS (121 rooms); Albuquerque, NM (137 rooms); Valdosta, GA (121 rooms); Nashville, TN (135 rooms); and Chicago, IL (137 rooms).
The Wyndham Garden Hotels purchased by Regency are in the
following locations: Kansas City Airport- Kansas City, MO (138 rooms); Richardson (Dallas), TX (137 rooms); St. Louis, MO (142 rooms); Knoxville, TN (137 rooms); Omaha, NE (120 rooms); and Wichita, KS (120 rooms).
About Wyndham International, Inc.
Wyndham International, Inc. offers upscale and luxury hotel and resort accommodations through proprietary lodging brands -- including Wyndham Hotels & Resorts, Wyndham Luxury Resorts and Summerfield Suites by Wyndham -- and a management services division. Based in Dallas, Wyndham International owns, leases, manages and franchises 260 hotels with more than 65,000 rooms in the United States, Canada, Mexico, the Caribbean and Europe. For more information, visit www.wyndham.com.
About Milestone Investments, Inc. and Regency Hotel Management, Inc.
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.
Cautionary Statement for Wyndham International, Inc.
This press release contains certain forward-looking statements within the meaning of Sections 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including projections about future operating results. The Company's results could differ materially from those set forth in the forward-looking
statements. Certain factors that might cause a difference include, but are not limited to, risks associated with the availability of equity or debt financing at terms and conditions favorable to Wyndham; risks associated with the course of litigation; Wyndham's ability to effect
sales of assets on favorable terms and conditions; Wyndham's ability to integrate acquisitions into its operations and management; risks associated with the hotel industry and real estate markets in general;
competition within the lodging industry; the impact of general economic conditions; risks associated with debt financing; and other risks and uncertainties set forth in the company's annual, quarterly & current reports and proxy statements.
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