ResortQuest International, Inc. (NYSE: RZT), the first brand name in the vacation rental and property management industry, and its online booking service, resortquest.com, today announced that the company has entered three new resort destination markets and expanded its presence significantly in a fourth with the acquisition of four property management companies for a total of $8.5 million in cash and stock. The four companies are Ridgepine, Inc., Sunriver, Oregon; Ryan`s Golden Eagle Management, Big Sky, Montana; Cove Management Services, Inc., which operates Sunrise Vacation Rentals and Cove Condo Rentals, Palm Desert, California; and Columbine Management & Real Estate, Inc., Dillon, Colorado.
The addition of more than 800 total condominium and home rentals represents a 6 percent increase in ResortQuest`s current property management and rental portfolio of nearly 14,000 vacation properties in North America and represents approximately $6.5 million in revenue on a trailing 12-month basis. ResortQuest`s vacation rental properties may be booked directly through the company`s powerful new Internet booking service, resortquest.com.
The four acquisitions bring to eight the total number of companies ResortQuest has purchased since its IPO in May 1998, representing a 35 percent increase in unit inventory and a 64 percent increase in pro forma annualized revenue.
“These acquisitions support our strategic growth plans and extend our reach into key new resort destination markets with excellent growth potential,” said David Sullivan, ResortQuest chairman and CEO. “The Palm Desert acquisition marks our entry into the important Southern California market, an area that attracts millions of vacationers annually. Ridgepine is our first resort in Oregon and expands our presence in the increasingly popular Pacific Northwest,” Sullivan added.
“The Montana acquisition broadens our exposure in the Western U.S., while the addition of Dillon, Colorado to our portfolio complements our properties in Aspen, Breckenridge and Telluride, giving us greater breadth in one of the nation`s most popular ski resort markets. We continue to aggressively pursue acquisitions as part of our overall growth strategy.”
“These acquisitions bring to 22 the number of premier resort destination markets we serve and further increase the range of vacation experiences we offer our customers” said David Levine, ResortQuest president and COO. “All of these companies have solid operational management in place that have developed excellent relations with local homeowners, a key source of future growth for ResortQuest.”
Palm Desert, California:
The Palm Springs/Desert Resorts area of Southern California is located in Riverside County, the state`s fastest growing county. Situated east of Los Angeles and northeast of San Diego, the region encompasses such popular resort and travel destination towns as Palm Springs, Palm Desert, Rancho Mirage and Indian Wells.
Cove Management Services` business is concentrated in the vicinity of Palm Desert. Property owners originate from L.A., San Diego, Northern California, Washington and Western Canada, which has resulted in a large local inventory of vacation rental properties. Founded in 1983, Cove currently manages more than 300 units.
Sunriver is a 3,300-acre resort and residential community in central Oregon that offers a variety of recreational activities. Developed in 1968, the area consists of homes and condominiums, plus a shopping village, three golf courses, numerous tennis courts, swimming pools, bicycle pathways, a marina and riding stables. Ridgepine, Inc. currently manages 21 owner associations in the Sunriver area, as well as 162 homes and condominiums.
“Ridgepine`s management of local homeowner associations, which collectively represent the majority of Sunriver`s pool of rental units, gives us an excellent base upon which to build our vacation property rental contract business,” Levine said. “Ridgepine is minutes away from Mount Bachelor, a nationally recognized skiing facility. With its hiking, riding and outdoor orientation, Ridgepine also offers our Western destination leisure travelers a year-round option to an all-skiing vacation.”
Big Sky, Montana:
Big Sky, Montana, located approximately 50 miles south of Bozeman, is perhaps best known as the resort community created by newscaster and native Montanan, Chet Huntley. A year-round resort destination, Big Sky offers a variety of winter and summer activities, including skiing, hiking, fishing, horseback riding, golfing and biking. Ryan`s Golden Eagle Management, Inc., founded in 1980, currently manages 207 rental units and one owner association.
The town of Dillon, where Columbine Management & Real Estate`s business is concentrated, is located approximately 75 miles west of Denver, close to a number of world-class ski resorts, including Breckenridge, Keystone, Arapahoe Basin and Copper Mountain. Dillon has a large and growing second home market, with property owners originating from the Denver area and beyond. Columbine presently manages a total of 141 vacation rental units and 31 owner associations.
“Although winter is Dillon`s primary rental season, the town`s lakeside location draws a large number of visitors during the summer months, as well,” Levine said.