ResortQuest International, Inc. (NYSE: RZT), the world`s largest vacation rental property management company and the first brand name and “real-time” online booking service (resortquest.com/AOL Keyword: ResortQuest) in vacation condominium and home rentals and sales, today announced that the company had acquired in an all-cash transaction R&R Resort Rental Properties, Inc. (R&R) in the Outer Banks, N.C., a popular resort destination along the Carolina Coast.
The company also said that it had entered the Steamboat Springs, Colo., market with the all-cash purchase of Steamboat Premier Properties, Ltd. (SPP). The acquisitions bring ResortQuest`s total portfolio of vacation rentals to nearly 20,000 units in 46 premier resort destinations in the U.S. and Canada.
R&R Resort Rental Properties, Inc.
Established in 1987, R&R provides property management services for more than 400 vacation rental properties in the northern Outer Banks. Together with ResortQuest`s B&B on the Beach and Sand and Sea resort operations, the company now manages more than 1,200 units in the highly popular northern Outer Banks.
“The R&R acquisition complements our existing Outer Banks operations, particularly in Corolla and Duck,” said David L. Levine, chairman, president and chief executive officer. “The Outer Banks is an increasingly popular beach resort, attracting more than 7 million, mostly drive-in visitors a year. With our three resort operations in the region, we have established a dominant leadership position there. With that kind of presence, we are able to market more effectively to attract the greatest number of guests and owners. We also expect to realize additional cost synergies.”
“From a timing standpoint, the completion of this purchase on April 1, 2001, prior to R&R`s high season from mid-June through late August, means that it will be immediately accretive to 2001 earnings,” said Levine. “We expect R&R to contribute $0.03-$0.04 for the remainder of 2001, with roughly $0.01 being contributed in the second quarter. On an annual basis, R&R`s operations should contribute $0.02 in earnings. We will continue to selectively seek strategic tuck-in and new market acquisitions.”
“ResortQuest is already a well-known and highly regarded presence in the Outer Banks with high name recognition, said Ben Garrett, R&R principal. “Our association with ResortQuest translates into enormous benefits for our owners, including proven international marketing programs, a state-of-the-art Web site, resortquest.com, the power of a national brand, operations support, and QuestPerks, the company`s new owners program that allows homeowners substantial discounts at all ResortQuest properties, plus other travel-related discounts.”
Steamboat Premier Properties, Ltd.
Founded in 1984, Steamboat Premier Properties, Ltd., is a privately held Colorado corporation with a national reputation for superior service and maintenance of the units it manages. SPP is the only management company in Steamboat Springs to receive the top quality rating for both services and facilities at all its properties.
“This transaction extends our reach into Steamboat Springs, a world-class, year-round resort that is synonymous with skiing and our seventh Colorado destination,” said Levine. “Steamboat Premier Properties currently manages 225 high-quality rental units and nine owner associations, with a 10th scheduled to be added pending completion of a new property. SPP adds significant value as it further enhances our position as the leading vacation property management company in the state with the widest range of destinations and allows us to take a greater position in this key market.
“We expect SPP to contribute nearly $0.03 to our 2001 first quarter earnings and be slightly accretive for the full year,” said Levine. “Once we integrate SPP into ResortQuest, we believe that we will be able to accelerate their already impressive growth rate and that SPP will contribute at least $0.01 to our 2002 earnings.”
“By joining a national brand like ResortQuest, we increase exponentially the universe of potential renters for our owners,” said Harry S. Lambart, founding partner and president. “Marketing is critical in Colorado`s increasingly competitive resort rental market, and ResortQuest`s regional, national and international marketing programs will give our owners a signficant leg up on the competition. Owners also will enjoy the benefits of ResortQuest`s new homeowner program, QuestPerks, that offers owners significant discounts at other ResortQuest properties and access to a wide array of personal services and benefits.”