ResortQuest International, Inc. (NYSE:RZT), the first brand name and online booking service (resortquest.com) in vacation property rentals, resort property management and real estate sales, today announced that the company has acquired Scottsdale Resort Accommodations, LLC, a vacation property management company, for $1.6 million in cash and stock. It is ResortQuest`s first acquisition in Arizona and adds a key desert resort destination to the company`s diversified mix of premier North American resort locations.
Scottsdale Resort Accommodations is ResortQuest`s 10th acquisition since its May 1998 IPO and the sixth announced in the past seven weeks. The 10 companies, aggregating more than 4,000 total units, represent a 40 percent increase in ResortQuest`s initial portfolio of vacation rental units. The Scottsdale acquisition is expected to be immediately accretive to 1999 earnings.
Founded in 1997, Scottsdale Resort Accommodations offers vacation property rental and management services in Phoenix and Scottsdale, Arizona, and surrounding resort communities. Currently, the company manages 165 vacation rental units in the popular Arizona desert resort community, which is located in Maricopa County, one of the fastest growing counties in the U.S.
“With the Scottsdale acquisition, ResortQuest enters another important market, one of the most desirable resort destinations in the country,” said David Sullivan, ResortQuest chairman and CEO. “The greater Phoenix/Scottsdale area is a major golf resort destination and attracts more than 7 million leisure visitors annually. We continue to review a number of high-quality acquisition candidates and are pleased at how well vacation rental company owners are responding to the ResortQuest concept. It validates our business strategy.”
“Scottsdale Resort Accommodations is the leading vacation property management company in this market,” said David Levine, president and COO of ResortQuest. “With nearly 37,000 new residential units started in 1998 alone, the growth potential is significant. Although winter is their peak season, SRA has developed a successful long-term corporate business base to maintain favorable occupancy during non-peak months.”
“Affiliating with ResortQuest gives our operation significant, added marketing clout, which will help increase revenues for our owners,” said Steve Schein, president of SRA. “ResortQuest`s new interactive website and state-of-the-art, real-time booking engine, resortquest.com, gives vacationers the ability to “visit” our resort and “tour” our properties, which will meaningfully differentiate us from our competitors.”
ResortQuest provides the first one-stop resource for vacation home and condominium rentals in premier resort destinations in North America. ResortQuest also is the first branded vacation rental, property management and real estate sales company to offer online booking through resortquest.com. ResortQuest`s current locations include Gulf Shores, Ala.; Scottsdale, Ariz.; Palm Desert, Calif.; Aspen, Breckenridge, Dillon and Telluride, Colo.; Bethany Beach, Del.; Captiva Island, Destin, Ft. Walton Beach and Sanibel Island, Fla.; St. Simons Island, Ga.; Hawaii, Maui, Oahu, and Kauai, Hawaii; Nantucket, Mass.; Big Sky, Mont.; the Outer Banks of North Carolina; Sunriver, Ore.; Hilton Head Island, S.C.; Park City, Utah; and Whistler, British Columbia.
ResortQuest maintains corporate offices in Memphis, Tenn.