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Marshall Management, Inc., Company to Pursue Growth Following Termination of Merger with AFM Hospitality Corporation |
SALISBURY, Md., February 3, 2003 � Marshall Management, Inc., a leading
mid-sized management company, today unveiled new growth plans to increase
its current managed hotel portfolio by as much as 50 percent from 20 hotels
currently to between 30 and 35 properties within the next several years.
The new growth initiative follows the recent joint decision to terminate
a proposed merger with Toronto-based AFM Hospitality Corporation (TSX:AFM).
McMahon Named Vice President of Development To head up the company�s new growth initiatives, Marshall Management has hired Scott McMahon as vice president of development. Previously, he was national sales director for USFS, Inc. McMahon held a number of increasingly important positions with USFS, and was named one of its top five sales executives for the past five years. He holds a bachelor of arts degree in consumer economics from the University of Maryland. �McMahon has a solid reputation for customer service and follow-through, which are hallmarks of our company,� said Marshall. �He and several other key operations and marketing management additions we made in the past year give us the greatest depth and operating expertise in our company�s 20-plus year history. We are well positioned to grow, but definitely prefer to remain a mid-sized operator and not grow just for the sake of growing. We are very comfortable with operating in the 30-35 property range.� Marshall noted that the company has significant experience in the three- and four-star segments, both branded and independent properties in the full-service and premium limited-service categories. �Despite the current economic conditions, our managed portfolio has continued to generate strong operating profits, compared to a substantial decline industry-wide,� he said. �Our properties have been consistently profitable in this past downturn and able to fund capital improvements and generate a return on investment for our owners. �We see 2003 as another difficult operating year, which will create additional opportunities for companies with proven track records like ours. Urban properties particularly have been hard hit due to the poor economy and declining air travel,� he pointed out. �We expect to see a significant number of owners of these hotels seeking more experienced operators.� The Marshall Performance Plan To attract urban properties, the company has introduced a new, third-party, performance-based management contract. Called the Marshall Performance Plan, the new contract will be highly flexible and creative in its mix of base and incentive fees. �Our third-party contracts have been performance-based for years because we believe it most closely aligns management�s interests with the owner�s interests to create a win-win situation for both,� he noted. �We have the flexibility to focus more on the upside incentive fees, because we are confident that we can add value to every assignment we accept. We believe this tailored approach will be especially beneficial to owners, especially during this difficult operating period when bottom lines are under significant pressure.� In addition, Marshall Management has the ability to invest equity with owners for selected management contracts. �We will focus on urban, full-service properties with 150 to 350 rooms, as well as premium limited-service brands in suburban and secondary markets. Marshall has strong relationships with all the major brands,� he commented. �We also will continue to seek branded and independent resort properties, a segment in which we have considerable depth.� Marshall Management, founded in 1980, has special expertise in operating three- and four-star branded hotels and resorts, averaging 100 to 400 rooms, in urban and central business districts, suburban and resort locations. In addition, the company has a proven track record managing independent resort properties. Located in Salisbury, Md., the company has managed a wide array of leading hotel brands, including Hilton, Sheraton, Six Continents, Choice and Cendant. Despite forecasts for a continued difficult operating environment in 2003, the company�s management portfolio is expected to post a revenue per available room improvement in 2003. |
Marshall Management 718 Naylor Mill Road Salisbury, MD 21801 410.749.8464 www.marshallhotels.com |