ResortQuest International, Inc. (NYSE: RZT), the world`s largest vacation rental property management company, today announced two acquisitions in key target markets. ResortQuest expanded its inventory in Florida through the acquisition of Universal Vacations, a Florida based rental property management company effective May 1, 2001. The Company also announced that effective April 1, 2001 it acquired Mountain Valley Properties, a rental property management company in the Gatlinburg, Tennessee, family vacation destination area. Both companies operate properties in year-round markets.
“These two all-cash acquisitions not only sustain the momentum of our growth strategy, but also allow ResortQuest to extend into strategic growth areas while benefiting from favorable valuations,” said David Levine, Chairman, President and Chief Executive Officer of ResortQuest. “We are particularly pleased that both of these transactions further our objective to decrease our exposure to seasonality and to increase our revenue opportunities year-round. Our strategy remains clear: to make selected smart acquisitions and to drive internal growth through technology and service innovations. Our successful alliance program, which will allow property owners across the country to access our online booking service, is illustrative of this effort.”
These acquisitions conform to ResortQuest`s target multiple range. The Company expects the combined operations to be slightly accretive to earnings for the remainder of the year with a slightly negative impact to second quarter earnings. On an annual basis, the company expects these acquisitions to contribute between $.01 and $.02 to earnings. Universal Vacations Inc.
Established in the late 1980`s, Universal Vacations, Inc. operates over 190 rental units primarily on the Gulf Coast of Florida and in Central Florida with offices in New Port Richey, Bradenton / Sarasota and Naples, Florida. The Company manages short-term rentals and it experiences its busiest seasons during the winter months and the summer European season. The area attracts not only domestic tourists, but increasingly significant numbers of international visitors as well.
“This transaction strengthens our leadership position in the state of Florida, the nation`s number one leisure destination. With the addition of Universal Vacations, ResortQuest now represents over 6,600 vacation rental units in Florida and we expect to realize additional cost synergies with this tuck-in acquisition,” said Mr. Levine. The Company recently announced that it had acquired Florida Vacation Accommodations, a highly regarded management company, which solidified ResortQuest`s position as the undisputed leader in vacation rental management in southwest Florida.
“ResortQuest shares our philosophy in providing quality services. We are pleased to align ourselves with a company whose standards are unparalleled in the industry,” said Simon Clarke, Vice President, Universal Vacations, Inc. Mountain Valley Properties
Founded in 1993, Mountain Valley Properties operates over 170 short-term rentals and attracts vacation-goers year-round visiting the Great Smoky Mountain National Park. This national park draws over 10 million people a year, making it the most visited park in the country.
“We are thrilled to enter this new market via a high caliber company like Mountain Valley Properties,” said Mr. Levine. “After securing our position in this marketplace, we believe there are numerous additional opportunities to increase the depth of our presence in the market similar to our proven growth models in Southwest Florida and in the Outer Banks of North Carolina.”
“We`re excited about this transaction. We anticipate that our property owners will benefit immensely from ResortQuest`s strong national brand and superb online booking system, furthering our business prospects,” said David Myers, President, Mountain Valley Properties.
ResortQuest International, the first brand name and “real-time” online booking service (www.resortquest.com / AOL Keyword: ResortQuest) in vacation condominium and home rentals and sales, provides a one-stop resource in 50 premier resort destinations in the U.S. and Canada. ResortQuest is the world`s largest vacation rental property management company, based on a portfolio of over 20,000 vacation rental properties with a combined real estate value estimated in excess of $7.0 billion.