Baymont Inns Moves Into California; Strategic Market Partnership Development Program Provides Impetus for Brand Growth.

Business Editors

MILWAUKEE--(BUSINESS WIRE)--Oct. 8, 2002

The gateway to Southern California is opening for Baymont Inns & Suites, a division of The Marcus Corporation (NYSE:MCS).

The middle-market brand that has quickly become a favorite with franchisees and travelers in other parts of the country is now set to break ground on its first property in California. The 105-room, four-story Baymont Inn & Suites will be located near Ontario Airport adjacent to Ontario Mills Mall and will be built as part of a joint-venture agreement with Lew Wolff, a California developer.

The new property is part of Baymont Inns' strategic market partnership development (SMPD) program in which Baymont Inns enters into master development agreements with qualified developers for the purpose of building Baymont Inns in major metropolitan markets.

Jim Abrahamson, president of Baymont Inns & Suites, said the SMPD program was initiated because Baymont recognized the need for middle market alternatives in metropolitan areas.

"We will increase the number of properties in the Baymont Inns system through new-build inns and acquisitions, and we see that goal can be accomplished in metro areas where travelers often desire middle-market accommodations instead of the traditional choices," Abrahamson said. "Baymont Inns & Suites continues to prove itself as a strong choice for both business and leisure travelers, and metro areas are places in which Baymont Inns can accommodate its regular and loyal guests, as well as attract new customers."

In its SMPD program, Baymont Inns provides half of the equity requirement for each hotel and will manage the hotels. The joint-venture partner provides the other half of the equity and development expertise to facilitate rapid development in strategic markets.

Jerry Oenning, director of development for Baymont Inns' western region, said the new property is the first of four or five Baymont Inns that will be part of the SMPD push in California. The chain is looking at sites in San Diego, Orange County, Anaheim, LAX Airport and Pasadena/Arcadia.

"We never compromise quality and our SMPD program is designed so that the quality requirements of Baymont Inns are consistent," Abrahamson said. "California is an important market for the Baymont Inns system and we are very excited about this development."

Lew Wolff, a developer/owner of upper-market properties, said he was looking for a development project in the middle market because there is significant consumer demand for such an option in metropolitan areas.

"I chose Baymont Inns because it's a product that will succeed here," Wolff said. "It's a brand that should have been available in this market long ago. And, it's a brand with a strong management team that understands the hotel industry."

He said ownership by The Marcus Corporation was an important selling point, stating: "Marcus has an impeccable reputation."

Chuck Barcus, vice president. of development for Baymont Inns, said Wolff fills the bill for what Baymont Inns seeks in a joint-venture partner.

"It's necessary that our partners have experience in hotel development or with other types of real-estate," Barcus said. "That's most important because it makes it possible for our partners to effectively expedite the development process. The partner must be committed to the Baymont Inns brand and have an operational style compatible with the ethics, culture and goals of Baymont Inns."

Barcus said the SMPD program requires that the Baymont Inns have strategic value in areas where the brand is under-represented or does not currently have representation.

"This property and the entire SMPD effort will have a great impact on our reservation system," Barcus said. "More people will see Baymont Inns in these metropolitan areas and that means the brand will have a great deal of added consumer awareness and recognition."

He said deals such as the Ontario project open up immense opportunities for franchise development--of which Baymont Inns has an active, successful program.

"This is a strategically located property that will serve our guests well, and will also serve our system well," Barcus said. "All Baymont Inns franchisees will benefit from our entrances into strong California markets."

Baymont Inns & Suites continues to be the best brand in the mid-market segment. The brand offers a 110-percent Satisfaction Guarantee, and has made a huge investment in its frequent-stay program--Guest Ovations--with more than 170,000 members and growing. Under the guarantee, a dissatisfied guest receives his or her night's stay free, plus a coupon for a 10-percent discount on the next Baymont Inns stay. In addition, Baymont Inns' Guest Ovations Rooms offer upscale amenities not found in competitive midmarket hotels, such as plush pillow-top mattresses, Down Lite(TM) pillows, fluffy towels, branded bath products, and free in-room bottled water. The rooms also feature an enhanced workstation with an executive-size desk, comfortable ergonomic chair and task lamp with a data port. The bottom line: Baymont Inns is a strong brand with a strong commitment to the success of its franchisees, offering rewarding, comfortable and pleasant stays for guests.

Headquartered in Milwaukee, Wis., The Marcus Corporation is a leader in the lodging and entertainment industries. The company's limited-service lodging division operates or franchises 182 Baymont Inns & Suites in 31 states, seven Woodfield Suites in Illinois, Wisconsin, Colorado, Ohio and Texas and one Budgetel Inn in Wisconsin. Marcus Theatres owns or manages 490 screens at 47 locations in Wisconsin, Ohio, Illinois and Minnesota, and one family entertainment center in Wisconsin. Marcus Hotels and Resorts owns or manages 11 hotels and resorts in Wisconsin, California, Minnesota, Missouri and Texas, and one vacation club in Wisconsin. For more information, visit the company's Web site at www.marcuscorp.com.