The hotels are the first contracts signed by Marshall since the company recently announced its intent to increase its management portfolio by 50 percent over the next several years.
 

�These hotels represent two of the three hotel segments in which we have in-depth expertise,� said Michael Marshall, president of Marshall Management.  �The Wytheville property is a drive-to location with a high volume of transient travel, while the Miami property has an urban orientation with a large corporate and meeting component.  We also are pursuing a number of resort hotel management opportunities.� Marshall added that the company has seen a marked increase in inquiries from hotel owners since the first of the year.  �The war with Iraq and,

Miami Plaza Hotel 7707 NW 103 Street Hialeah Gardens, Florida

Owners are getting pressure from their lenders and are not settling for �business as usual� from their current operator.�  He noted that Marshall Management�s pipeline of management contracts is at the highest level since the early 1990s.

Marshall Management will prepare a business plan, operating budget, sales and marketing plan and capital improvement plan for the 262-room Miami Plaza Hotel, formerly a Sheraton hotel, located eight miles from the Miami airport. Upon completion of the renovation, the property will be converted to the Howard Johnson flag, according to Scott McMahon, Marshall Management vice president of development.  �The Howard Johnson brand does very well in the south Florida market, and our goal is to help the new owner, a first-time investor in hotel real estate, quickly become a leader in that market.�

McMahon said Marshall Management also will install tailored proprietary management systems to create appropriate reports and tracking and forecasting programs to assist the owners in their operation of the hotel.  In addition, Marshall Management will act in an asset management role on an on-going basis. 

�We are one of the most flexible management companies in the marketplace today,� said Marshall.  �We tailor our programs to the owner�s specific needs.  In this case, the owners want to operate the hotel themselves but need to have the property systems and oversight first.  And, they realize the value of having an experienced operator acting as asset manager for the hotel to help ensure optimum profitability.�

The 154-room Ramada Hotel, located in Wytheville, Va., is the company�s second new management contract.  Located at the intersection of I-77 and I-81, the drive-to property also has a franchised Country Kitchen restaurant on site.

Marshall Management immediately installed its proprietary control systems for the local ownership group in order to get the property�s costs under control.  Marshall Management created the hotel�s first comprehensive sales and marketing program, including installing a guest tracking database and implementing an aggressive Internet marketing campaign. 

�We�ve been on site for only two months, and already have increased revenues by 10 percent and have improved margins significantly,� said Marshall.  �We�ve implemented improvements to the restaurant�s operations, especially in controlling food and labor costs, and have returned it to profitability in a very short period of time.�

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/drive-to 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, InterContinental Hotel Group, Choice and Cendant.  Despite forecasts for a continued difficult operating environment in 2003, the company�s management portfolio currently is on track to post improved revenue per available room (RevPAR) for its managed portfolio in 2003.