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BOCA RATON, FL - September 3, 1998 - Bluegreen Corporation
(NYSE: BXG), a leading U.S. developer and marketer of timeshare resorts
and residential land, today announced that it has entered the urban timeshare
market via the acquisition of The Lodge Alley Inn, a privately-held hotel
located in Charleston, South Carolina, for an undisclosed sum of cash.
Bluegreen expects the conversion of The Lodge Alley Inn into a timeshare
property, including a complete facilities upgrade and renovation, to begin
within the next 60 days. Based on current market conditions, Bluegreen
estimates that The Lodge Alley Inn, once converted, will yield approximately
$65,000,000 in timeshare revenues over an anticipated six-year sell-out
period.
Established in 1982, The Lodge Alley Inn is a full-service, 89-room hotel located in the heart of Charleston's historic district. The property has an historical average occupancy rate of more than 70%. The Lodge Alley Inn timeshare owners will be within walking distance of the Charleston Museum, the nation's first museum; Patriot's Point, the world's largest navel and maritime museum; and Fort Sumter, where the Civil War began. Visitors can also browse in Charleston's open-air markets, art galleries and antique shops and enjoy world-class dining. Charleston's special events calendar includes the Spoleto Festival, Candlelight Tours of Houses and Gardens, the Moja Arts Festival, the Charleston Garden Festival and the Taste of Charleston. George Donovan, President and Chief Executive Officer of Bluegreen, commented, "The urban timeshare phenomenon is spreading across the country as individuals realize that many of our nation's cities offer a unique vacation experience. The Lodge Alley Inn will complement Bluegreen's existing timeshare properties in Myrtle Beach - Harbour Lights and Shore Crest - and strengthen our presence in the southeastern United States. Importantly, we anticipate that The Lodge Alley Inn will become a part of Bluegreen's point-based vacation club, which provides consumers with the flexibility to choose their destinations, times and lengths of stay from their vacation ownership." Mr. Donovan continued, "We utilized a portion of the proceeds from our recent equity transaction with Morgan Stanley Real Estate Fund III, L.P. to help fund this acquisition. The Morgan Stanley transaction, which also allows Bluegreen access to an additional $25 million in funding, augmented our already strong cash position and provides us with an important competitive advantage over many of our industry peers. We feel that the fundamentals for the timeshare industry are outstanding and we will continue to leverage all facets of our relationship with Morgan Stanley to expand our industry presence." Bluegreen is one of the leading companies engaged in the acquisition, development, marketing, management and sale of timeshare resorts and residential land. The Company's timeshare resorts are located in a variety of popular vacation destinations including the Smoky Mountains of Tennessee; Myrtle Beach, South Carolina; Branson, Missouri; Orlando, Florida; Wisconsin Dells, Wisconsin; and Aruba, while its land operations are predominantly located in the Southeastern and Southwestern United States. This press release contains forward-looking statements.
The words "believe," "expect," "intend," "anticipate," and "project," and
similar expressions identify forward-looking statements, which speak only
as of the date the statement was made. The Company undertakes no obligation
to publicly update or revise any forward-looking statements, whether as
a result of new information, future events, or otherwise. Forward-looking
statements are inherently subject to risks and uncertainties, some of which
cannot be predicted or quantified. Future events and actual results could
differ materially from those set forth in, contemplated by, or underlying
such forward- looking statements. The risks and uncertainties to which
forward- looking statements are subject include, but are not limited to,
regulatory changes, national or regional economic conditions that can affect
the real estate market, and other risks detailed from time to time in the
Company's filings with the Securities and Exchange Commission.
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