Marshall Hotels & Resorts Expands Portfolio with Five Management Contracts in First Quarter
Sees Uptick in Lender-owned Hotels Changing Hands
Marshall Hotels & Resorts, Inc., a leading hotel management and services company that operates properties nationwide, today announced that it added four hotel managements contracts and one country club management engagement in the 2013 first quarter. The property locations range from Tyler, Texas, to Binghamton, N.Y.
"We have noticed a sharp uptick in local and regional banks wanting to dispose of lender-owned assets that require major renovations and are in danger of losing their franchise flags," said Mike Marshall, president and CEO. "Lenders are at the decision point to either hold the troubled asset that currently is losing money and wait for the hotel economy to improve further or sell now.
"The Catch-22 is that many of these hotels require an immediate major capital infusion to maintain their franchise flag or remain competitive," he noted. "That carries more risk than many lenders are willing to take which is leading to more of these troubled assets coming to market. Savvy investors see the value on a risk-adjusted basis and realize that these properties typically are deep turnarounds that require repositioning and re-energized management, which is one of our key strengths."
The five new management contracts include:
- Magnuson Hotel & Conference Center, Tyler, Texas—This 159-room full-service hotel features more than 10,000 square feet of meeting space capable of handling groups up to 450 people. The hotel, which recently was rebranded to the Magnuson flag, is getting ready to embark on a major renovation program.
- Ramada Vineland, N.J.—The recently renovated 103-room Ramada Vineland's amenities include an outdoor swimming pool, three restaurants and more than 4,700 square feet of meeting space.
- Former Quality Inn Hotel, Carmel Church, Va.—The hotel is well located off of I-95 with high visibility in the rapidly growing corridor between Richmond and Washington, D.C. Plans call for Marshall to oversee renovation and rebranding programs of the hotel by the third quarter.
- Fernwood Hotel and Convention Center, Bushkill, Pa.—The 128-room resort offers the largest selection of convention and meeting space in the Pocono Mountain resort area, capable of handling business and social groups up to 2,400 people. The property offers indoor and outdoor swimming pools, snowtubing options, four restaurants and bars, a golf course, horseback riding trails and is located near skiing, a waterpark, and a casino.
- Vestal Hills Country Club, Binghamton, N.Y.—Marshall Management will operate the country club's 18-hole golf course, restaurant, swimming pool and tennis course, located on 215 acres.
"Many of the loans on these hotels are sold to investment groups at attractive discounts. Investors are acquiring these loans for the yield, but will move quickly to foreclose if payments fall behind.
"When the properties change hands, the investment groups need both an operator and someone with renovation expertise and strong brand relationships. We bring more than 30 years experience of successfully operating these kinds of properties, which helps us attract investors," he noted. "We expect to see a continued increase in these properties trading hands."
Jerry Daly (for Marshall Hotels & Resorts, Inc. )
Daly Gray Public Relations
About Marshall Hotels & Resorts, Inc.
Salisbury, Md.-based Marshall Hotels & Resorts, Inc. has special expertise operating three- and four-star branded hotels and resorts, averaging 100 to 500 rooms, in urban and central business districts, as well as suburban/drive-to and resort locations. In addition, the company has a proven track record managing independent resort and unique urban properties. Marshall Hotels & Resorts has managed a wide array of leading hotel brands, including those under the Hilton, Marriott, Starwood, InterContinental Hotel Group, Hyatt, Carlson, Choice, Best Western and Wyndham flags. Additional information may be found at the company's Web site: www.marshallhotels.com.