SALISBURY, Md.—Marshall Hotels & Resorts, a hotel management and services company that operates properties nationwide, announced that it added four hotel managements contracts in the 2013 first quarter. The property locations range from Tyler, Texas, to Binghamton, N.Y.
“We have noticed a sharp uptick in local and regional banks wanting to dispose of lender-owned assets that require major renovations and are in danger of losing their franchise flags,” said Mike Marshall, president and CEO. “Lenders are at the decision point to either hold the troubled asset that currently is losing money and wait for the hotel economy to improve further or sell now.
“The Catch-22 is that many of these hotels require an immediate major capital infusion to maintain their franchise flag or remain competitive,” he noted. “That carries more risk than many lenders are willing to take which is leading to more of these troubled assets coming to market. Savvy investors see the value on a risk-adjusted basis and realize that these properties typically are deep turnarounds that require repositioning and re-energized management, which is one of our key strengths.”
The five new management contracts include:
Magnuson Hotel & Conference Center, Tyler, Texas—This 159-room full-service hotel features more than 10,000 square feet of meeting space capable of handling groups up to 450 people. The hotel, which recently was rebranded to the Magnuson flag, is getting ready to embark on a major renovation program.
Ramada Vineland, N.J.—The recently renovated 103-room Ramada Vineland’s amenities include an outdoor swimming pool, three restaurants and more than 4,700 square feet of meeting space.
Former Quality Inn Hotel, Carmel Church, Va.—The hotel is well located off of I-95 with high visibility in the corridor between Richmond and Washington, D.C. Plans call for Marshall to oversee renovation and rebranding programs of the hotel by the third quarter.
Fernwood Hotel and Convention Center, Bushkill, Pa.—The 128-room resort offers the largest selection of convention and meeting space in the Pocono Mountain resort area, capable of handling business and social groups up to 2,400 people. The property offers indoor and outdoor swimming pools, snowtubing options, four restaurants and bars, a golf course, horseback riding trails and is located near skiing, a waterpark, and a casino.
“When the properties change hands, the investment groups need both an operator and someone with renovation expertise and strong brand relationships. We bring more than 30 years experience of successfully operating these kinds of properties, which helps us attract investors,” said Marshall. “We expect to see a continued increase in these properties trading hands.”