|Chicago, Ill., (September 29, 1998) - Coastal Hotel Group,
a full-service hotel management company specializing in the operation of
upscale resorts, luxury inns and quality business hotels, today announced
a strategic partnership with PaineWebber Real Estate Securities Inc.
The partnership will provide Coastal with access to capital and other resources
that will support Coastal's future growth.
"The PaineWebber investment will enable us to expand our company quickly and increase our presence within the lodging industry," said Helmut Horn, president of Chicago-based Coastal Hotel Group.
In combination with PaineWebber, Coastal plans an aggressive pursuit of hotel management contracts at properties that are complementary to and create synergies with its existing portfolio of hotels. Some of the properties now managed by Coastal include Highlands Inn in Carmel, Calif., Cheeca Lodge in Islamorada, Fla., and The Bishop's Lodge in Santa Fe, N.M.
PaineWebber's investment includes the purchase of five hotels managed by Coastal and owned by Coastal affiliates. They are Hotel Pacific, Monterey Bay Inn, Victorian Inn and Spindrift Inn, all in Monterey, Calif., and the Inn at Laguna Beach, in Laguna Beach, Calif. The hotels will continue to be managed by Coastal.
"We believe Coastal Hotel Group is a very well-run company, with a remarkable
track record, distinctive properties, a proven strategy and a viable plan
for growth," said Terrence E. Fancher, managing director and head of real
estate principal transactions at PaineWebber. "We are
According to Coastal's Horn, "We're looking for properties where operating
and marketing approaches can have a bottom-line impact. Our new alliance
with PaineWebber will allow us to commit capital to specific properties,
when appropriate, and grow the company in a very
In addition to new hotel management contracts, Coastal will look to expand via the acquisition of a complementary management company.
PaineWebber Real Estate Securities Inc. is a subsidiary of Paine Webber Group Inc. which, together with its subsidiaries, serves the investment and capital needs of a worldwide client base. The firm employs 17,045 people in 300 offices.
Coastal Hotel Group specializes in the operation of upscale resorts, luxury inns and quality business hotels. For more information about Coastal Hotel Group, write or call Coastal Hotel Group, 211 East Ontario, Suite 400, Chicago, IL 60611, (312) 988-9888 or visit the Website at coastalhotel.com.