�We believe the timing is right to expand our third-party management business as the industry enters a tougher operating environment,� said William Otto, chief operating officer of Marcus Hotels and Resorts.  �In the coming months, we expect to see a growing number of hotels changing ownership, which is the most frequent point in time when new managers are brought in.  A significant number of properties that were acquired in the mid-�90s have loans coming due and are in need of refurbishment, a situation that typically leads to greater ownership turnover.  Additionally, hotel investors gravitate toward more experienced operators like Marcus.�

Otto said that he also expects to see a continuation of the trend toward consolidation among hotel management companies.  �Size provides a number of advantages, including economies of scale and enhanced marketing clout, and has become an increasingly critical factor in maximizing owner profits,� said Otto.  �We will consider opportunities to expand our management company business by acquiring other mid- and smaller-sized operating companies.�

Otto explained that the Marcus Hotels and Resorts� expansion strategy is not to be the biggest, but the best operator.  �Companies reach a certain size and find it increasingly difficult to provide the kind of senior-level personal attention that they did as a smaller operation,� said Otto.  �Our goal of managing approximately 6,000 rooms would place us among the top 20 companies in terms of size while still allowing us to provide our hallmark hands-on service, a reputation we have developed over the past decades.  Based on our long-term relationships with hotel owners, developers and institutional investors, we believe we are well positioned for growth.�

Otto said that the company will focus on three-and-a-half to four-star, full-service resort and/or hotel properties in major and secondary urban/suburban markets, targeting properties with at least 200 rooms and meeting space appropriate to the market.

�With our parent company backing, we have the support of a strong balance sheet to co-invest with owners to obtain long-term contracts,� Otto commented.  �Marcus has a strong, proven track record of both ownership and management, and we believe that we are uniquely positioned to expand in a controlled fashion in today�s economic environment.�

A division of the Marcus Corporation, Marcus Hotels and Resorts is one of the nation�s 35 largest independent hotel operators.  The company currently has contracts to manage more than 3,000 rooms nationwide, under such brands as Hilton, Crowne Plaza, Holiday Inn, Hilton Garden Inn, Preferred Hotels & Resorts and Historic Hotels of America.  Marcus Hotels and Resorts concentrates its operations on upscale and upper mid-market properties throughout the United States.  Its sister division, Baymont Inns & Suites manages more than 10,000 rooms in the mid-market without food and beverage segment.

Headquartered in Milwaukee, Wis., The Marcus Corporation is comprised of three divisions: limited-service lodging, movie theatres and hotels/resorts. In addition to Marcus Hotels and Resorts, the company currently operates or franchises 183 Baymont Inns & Suites in 30 states, and seven Woodfield Suites in five states; 482 movie screens in Wisconsin, Ohio, Illinois and Minnesota, and one family entertainment center in Wisconsin; four hotels and a resort in Wisconsin.

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.