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Marcus Hotels and Resorts Acquires Four-Diamond Westin Columbus Hotel in Ohio; Third Hotel Added to Portfolio in 12 Months, Continues to Seek Expansion through Equity Investments, Third-party Contracts

MILWAUKEE--(BUSINESS WIRE)--May 2, 2006--Marcus Hotels and Resorts, a division of The Marcus Corporation (NYSE:MCS), today announced that it has completed the purchase of the 186-room Westin Columbus (Ohio) hotel. Terms of the transaction were not disclosed. The property, which also will be operated by Marcus, was acquired from an affiliate of BPG Properties, LTD, the operating affiliate of Philadelphia-based Berwind Property Group, LTD., a privately held real estate investment management firm.

The historic hotel will undergo a substantial renovation to bring the property to peak operating condition. Upgrades include renovating all guest rooms and creating a new dining experience in harmony with the property's historic setting.

The AAA four-diamond Westin Columbus is located in the heart of downtown Columbus and is connected to the Southern Theatre, a historically restored, 933-seat performing arts theater. "This is the fourth historic hotel in our portfolio," said Bill Otto, president of Marcus Hotels and Resorts. "We have significant expertise in this unique segment of the hotel industry, ranging from careful restoration to understanding the complexities of historic tax credits.

"The Westin Columbus is the third addition to our portfolio in the past 12 months, with two more hotels slated to open in the months ahead," he noted. "These recent additions further geographically diversify our 15-hotel portfolio. The two other hotels added during the past 12 months include the recently opened 226-room Four Points by Sheraton Hotel Chicago Downtown Magnificent Mile and the recently acquired 220-room Wyndham Milwaukee Center. In addition, The Platinum Hotel & Spa, a 255-suite condo-hotel, is scheduled to open shortly in Las Vegas, and our fifth historic hotel, the 224-room Skirvin Hotel Oklahoma City, is currently being rehabilitated and is scheduled to re-open in the first quarter of calendar 2007."

Otto noted the company continues to seek expansion opportunities. "Our primary growth focus moving forward will be to co-invest with institutional investors to acquire or develop hotels," he said. "We also seek to expand our third-party management activity. We have an active pipeline and are aggressively pursuing a number of opportunities."

About Marcus Hotels and Resorts

Marcus Hotels and Resorts owns or manages a distinctive portfolio of 15 hotels and resorts with approximately 4,000 rooms, including two properties currently under development. The hotels include a cross section of premium-branded hotels under such brands as Preferred Hotels, Starwood, Hilton and Intercontinental. In addition, the company operates some of the nation's leading independent hotels and resorts. Marcus Hotels & Resorts has particular expertise in development, the acquisition and repositioning of hotels, historic hotels, large urban properties, indoor waterparks, resorts and condo-hotels.

About The Marcus Corporation

Headquartered in Milwaukee, Wis., The Marcus Corporation is a leader in the lodging and entertainment industries. The Marcus Corporation's movie theatre division, Marcus Theatres(R), owns or manages 504 screens at 45 locations in Wisconsin, Illinois, Minnesota and Ohio, and one family entertainment center in Wisconsin. The company's lodging division, Marcus Hotels and Resorts, owns or manages 13 hotels and resorts in Wisconsin, California, Minnesota, Missouri, Texas and Illinois and one vacation club in Wisconsin. For more information, visit the company's Web site at www.marcuscorp.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 could 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 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 increasing depreciation expenses and preopening and start-up costs due to the capital intensive nature of our businesses; (3) the effects of adverse economic conditions in our markets, particularly with respect to our hotels and resorts division; (4) the effects of adverse weather conditions, particularly during the winter in the Midwest and in our other markets; (5) the effects on our occupancy and room rates from the relative industry supply of available rooms at comparable lodging facilities in our markets; (6) the effects of competitive conditions in our markets; (7) our ability to identify properties to acquire, develop and/or manage and continuing availability of funds for such development; and (8) the adverse impact on business and consumer spending on travel, leisure and entertainment resulting from terrorist attacks in the United States, the United States' responses thereto and subsequent hostilities. 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.


    CONTACT: The Marcus Corporation
             Jerry Daly (media), 703-435-6293
             Chris Daly (media), 703-435-6293
             or
             Douglas A. Neis (investors), 414-905-1100

    SOURCE: The Marcus Corporation