ResortQuest International, Inc. (NYSE: RZT), the first brand name in the vacation rental and property management industry, today announced that it has completed the acquisition of Abbott Resorts, Inc., a property management and realty company in Destin, Florida, for $34 million in cash and stock, plus the assumption of certain debt. Eighty percent of the purchase price was paid in cash and 20 percent in shares of ResortQuest common stock.
The addition of Abbott Resorts` 2,400 condominium and home rentals on the Florida Gulf Coast represents a 22 percent increase in ResortQuest`s current property management and rental portfolio of nearly 11,000 vacation properties. Furthermore, the acquisition represents an increase in pro forma revenues of 47 percent. Revenues for the privately held management company for the 12 months ended July 31, 1998 totaled $28.8 million. ResortQuest`s pro forma revenue for the 12 months ended June 30, 1998 totaled $60.7 million.
``The Abbott Resorts acquisition is accretive to our earnings and expands our property base into the increasingly popular Destin area, a key strategic market for ResortQuest,`` said David Sullivan, chairman and chief executive officer of ResortQuest. ``Although Hurricane Georges caused damage along the Florida panhandle, we`re happy to report that there was minimal impact on our vacation rental properties and, more importantly, that no one was hurt.``
Abbott Resorts is the largest resort property management company in Florida and one of the largest in the industry, with rental properties located in Ft. Walton Beach, Destin and the beaches of South Walton, an area that attracts more than four million vacationers annually. In addition to managing vacation condominiums and homes, the company has the largest vacation home and condominium real estate sales organization in the Emerald Coast area, with sales exceeding $274 million for the 12 months ended July 31, 1998.
Sullivan noted that William Abbott, Jr., chairman and CEO, vice chairman of Abbott Resorts, will join ResortQuest`s board of directors.
``Abbott Resorts is one of the most respected names in the industry,`` said David L. Levine, ResortQuest president and chief operating officer. ``With this purchase, our total portfolio has grown to more than 13,000 properties since our May IPO. An additional advantage to the acquisition is Destin`s popularity in the spring and fall seasons, which complements our summer and winter destinations and smooths seasonal variations in our quarterly revenue streams.``
ResortQuest was formed in May through the acquisition of 13 founding companies, creating the first brand in the vacation rental and property management industry. The company provides the first one-stop resource for renting vacation homes and condominiums in premier resort destinations. ResortQuest`s current locations include Gulf Shores, Ala.; Aspen, Breckenridge and Telluride, Colo.; Bethany Beach, Del.; Destin, Ft. Walton Beach, Captiva Island and Sanibel Island, Fla.; St. Simons Island, Ga.; Hawaii, Maui, Oahu, and Kauai, Hawaii; Nantucket, Mass.; the Outer Banks of North Carolina; Park City, Utah; and Whistler, British Columbia. The company`s website address is www.resortquest.com.
The matters in this press release include ``forward looking statements`` within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are qualified by cautionary statements contained herein and in ResortQuest International`s filings with the Securities and Exchange Commission.