The
Marcus Corporation (NYSE: MCS) today announced it has signed an
agreement for the sale of the Hotel Phillips in Kansas City, Mo. to an
affiliate of Chicago-based Arbor Lodging Partners, a national owner and
manager of hotels that makes both debt and equity investments in
hospitality properties. Terms of the transaction were not disclosed.
The Marcus Corporation has successfully owned and managed the 217-room
Hotel Phillips for the past 14 years. Shortly after purchasing the
historic hotel, the company completed an extensive renovation and added
new guest amenities. A landmark in downtown Kansas City, the hotel also
offers approximately 11,000 square feet of flexible meeting and
pre-function space, a restaurant and a lounge.
“We consider this a highly strategic opportunity to acquire this
beautiful historic hotel in Kansas City and to contribute to the future
growth of the downtown area. The Hotel Phillips will be an excellent
addition to our growing portfolio of many types of hotels nationwide,”
said Vamsi Bonthala, chief executive officer of Arbor Lodging Partners.
“As with other historic properties in our portfolio, we are planning a
comprehensive renovation and the hotel will be managed by NVN Hotels,
our hotel management affiliate.”
“The decision to sell the Hotel Phillips is consistent with our overall
corporate strategy of constantly evaluating each of our owned hotels to
ensure we are maximizing shareholder value, while also focusing on
growth through new management contracts,” said Gregory S. Marcus,
president and chief executive officer of The Marcus Corporation.
The sale and transition of management is expected to occur on or about
September 1, 2015.
About The Marcus Corporation
Headquartered in Milwaukee, Wisconsin, The
Marcus Corporation is a leader in the lodging and entertainment
industries, with significant company-owned real estate assets. The
Marcus Corporation’s theatre division, Marcus
Theatres®, currently owns or manages 681 screens at 55
locations in Wisconsin, Illinois, Iowa, Minnesota, Nebraska, North
Dakota and Ohio. Following the sale of the Hotel Phillips, the company’s
lodging division, Marcus®
Hotels & Resorts, will own and/or manage 19 hotels, resorts and
other properties in 10 states. For more information, visit the company’s
web site at www.marcuscorp.com.
About Arbor Lodging Partners
Arbor Lodging Partners is a Chicago-based national owner and operator of
hotels. The company was founded in 2005 with the goal of uniting the
best practices of enterprising hotel operators and sophisticated
institutional investors to effectively underwrite and execute
investments in the lodging space. Arbor Lodging Partners makes
investments in hotels, acquires loans secured by hotels, and, through
its affiliate NVN Hotels, manages operations for its own hotels and
those owned by third-parties. To learn more about Arbor Lodging Partners
visit http://www.arborlodging.com.
To learn more about NVN Hotels, visit http://www.nvnhotels.com.
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 include words such as we
“believe,” “anticipate,” “expect” or words of similar import. Similarly,
statements that describe our future plans, objectives or goals are also
forward-looking statements. Such forward-looking statements are subject
to certain risks and uncertainties which may cause results to differ
materially from those expected, including, but not limited to, the
following: (1) the availability, in terms of both quantity and audience
appeal, of motion pictures for our theatre division, as well as other
industry dynamics such as the maintenance of a suitable window between
the date such motion pictures are released in theatres and the date they
are released to other distribution channels; (2) the effects of adverse
economic conditions in our markets, particularly with respect to our
hotels and resorts division; (3) the effects on our occupancy and room
rates of the relative industry supply of available rooms at comparable
lodging facilities in our markets; (4) the effects of competitive
conditions in our markets; (5) our ability to achieve expected benefits
and performance from our strategic initiatives and acquisitions; (6) the
effects of increasing depreciation expenses, reduced operating profits
during major property renovations, impairment losses, and preopening and
start-up costs due to the capital intensive nature of our businesses;
(7) the effects of adverse weather conditions, particularly during the
winter in the Midwest and in our other markets; (8) our ability to
identify properties to acquire, develop and/or manage and the continuing
availability of funds for such development; and (9) the adverse impact
on business and consumer spending on travel, leisure and entertainment
resulting from terrorist attacks in the United States or incidents such
as the recent tragedy in a movie theatre in Louisiana. 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 we undertake no obligation to
publicly update such forward-looking statements to reflect subsequent
events or circumstances.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150729006420/en/
Copyright Business Wire 2015