MILWAUKEE--(BUSINESS WIRE)--The Marcus Corporation (NYSE: MCS) today announced it has signed an agreement for the sale of the Hotel Phillips in Kansas City, Mo. to an affiliate of Chicago-based Arbor Lodging Partners, a national owner and manager of hotels that makes both debt and equity investments in hospitality properties. Terms of the transaction were not disclosed.
The Marcus Corporation has successfully owned and managed the 217-room Hotel Phillips for the past 14 years. Shortly after purchasing the historic hotel, the company completed an extensive renovation and added new guest amenities. A landmark in downtown Kansas City, the hotel also offers approximately 11,000 square feet of flexible meeting and pre-function space, a restaurant and a lounge.
“We consider this a highly strategic opportunity to acquire this beautiful historic hotel in Kansas City and to contribute to the future growth of the downtown area. The Hotel Phillips will be an excellent addition to our growing portfolio of many types of hotels nationwide,” said Vamsi Bonthala, chief executive officer of Arbor Lodging Partners. “As with other historic properties in our portfolio, we are planning a comprehensive renovation and the hotel will be managed by NVN Hotels, our hotel management affiliate.”
“The decision to sell the Hotel Phillips is consistent with our overall corporate strategy of constantly evaluating each of our owned hotels to ensure we are maximizing shareholder value, while also focusing on growth through new management contracts,” said Gregory S. Marcus, president and chief executive officer of The Marcus Corporation.
The sale and transition of management is expected to occur on or about September 1, 2015.
About The Marcus Corporation
Headquartered in Milwaukee, Wisconsin, The Marcus Corporation is a leader in the lodging and entertainment industries, with significant company-owned real estate assets. The Marcus Corporation’s theatre division, Marcus Theatres®, currently owns or manages 681 screens at 55 locations in Wisconsin, Illinois, Iowa, Minnesota, Nebraska, North Dakota and Ohio. Following the sale of the Hotel Phillips, the company’s lodging division, Marcus® Hotels & Resorts, will own and/or manage 19 hotels, resorts and other properties in 10 states. For more information, visit the company’s web site at www.marcuscorp.com.
About Arbor Lodging Partners
Arbor Lodging Partners is a Chicago-based national owner and operator of hotels. The company was founded in 2005 with the goal of uniting the best practices of enterprising hotel operators and sophisticated institutional investors to effectively underwrite and execute investments in the lodging space. Arbor Lodging Partners makes investments in hotels, acquires loans secured by hotels, and, through its affiliate NVN Hotels, manages operations for its own hotels and those owned by third-parties. To learn more about Arbor Lodging Partners visit http://www.arborlodging.com. To learn more about NVN Hotels, visit http://www.nvnhotels.com.
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. These forward-looking statements may generally be identified as such because the context of such statements include words such as we “believe,” “anticipate,” “expect” or words of similar import. Similarly, statements that describe our future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties which may cause results to differ materially from those expected, including, but not limited to, the following: (1) the availability, in terms of both quantity and audience appeal, of motion pictures for our theatre division, as well as other industry dynamics such as the maintenance of a suitable window between the date such motion pictures are released in theatres and the date they are released to other distribution channels; (2) the effects of adverse economic conditions in our markets, particularly with respect to our hotels and resorts division; (3) the effects on our occupancy and room rates of the relative industry supply of available rooms at comparable lodging facilities in our markets; (4) the effects of competitive conditions in our markets; (5) our ability to achieve expected benefits and performance from our strategic initiatives and acquisitions; (6) the effects of increasing depreciation expenses, reduced operating profits during major property renovations, impairment losses, and preopening and start-up costs due to the capital intensive nature of our businesses; (7) the effects of adverse weather conditions, particularly during the winter in the Midwest and in our other markets; (8) our ability to identify properties to acquire, develop and/or manage and the continuing availability of funds for such development; and (9) the adverse impact on business and consumer spending on travel, leisure and entertainment resulting from terrorist attacks in the United States or incidents such as the recent tragedy in a movie theatre in Louisiana. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.