Press Release
April 12, 2001
MEMPHIS, TN -- 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.''
ResortQuest International provides a one-stop resource for vacation home and condominium rentals in 46 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 nearly 20,000 vacation rental properties with a combined real estate value estimated
at $7.0 billion. ResortQuest is the first branded vacation rental, property management and real estate sales company
to offer online booking through resortquest.com/AOL Keyword: ResortQuest.
ResortQuest's locations include Gulf Shores, Ala.; Scottsdale and Tucson, Ariz.; Palm Desert and Palm Springs,
Calif.; Aspen, Breckenridge, Crested Butte, Dillon, Snowmass Village, Steamboat Springs and Telluride, Colo.; Bethany
Beach, Del.; Beaches of South Walton, Bonita Springs, Captiva Island, Destin, Ft. Myers, Ft. Myers Beach, Longboat
Key, Marco Island, Naples, Navarre Beach, Okaloosa Island/Ft. Walton Beach, Orlando, Pensacola, Sanibel Island,
Sarasota, Siesta Key and Vanderbilt Beach, Fla.; St. Simons Island, Ga.; Hawaii, Maui, Oahu, and Kauai, Hawaii;
Sun Valley, Idaho; Nantucket, Mass.; Big Sky, Mont.; the Outer Banks of North Carolina; Lake Erie Islands, Ohio;
Sunriver, Ore.; Hilton Head Island, S.C.; Deer Valley, Park City and The Canyons, Utah; and Whistler, British Columbia.
This filing contains certain forward-looking statements within the meaning of Section 27A of the Securities Act
and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe
harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties,
including but not limited to the risks associated with: successful integration of the Founding Companies and additional
required companies factors affecting internal growth and management of growth, ResortQuest's acquisition strategy
and availability of financing, the tour and travel industry, seasonality, quarterly fluctuations and general economic
conditions, dependence on technology and travel providers, and other factors discussed in the Registration Statement.
Although the company believes that the assumptions underlying the forward-looking statements contained herein are
reasonable, any of the assumptions could be inaccurate, and, therefore, there can be no assurance that the forward-looking
statements included in this filing will prove to be accurate. Indeed, actual results may differ materially from
those expressed or implied in these statements. In light of the significant uncertainties inherent in the forward-looking
statements included herein, the inclusion of such information should not be regarded as a representation by ResortQuest
or any other person that the objectives and plans of the company will be achieved.
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Contact:
ResortQuest International
Mitch Collins and David Selberg, 901/762-0600
or
Media:
Daly Gray Public Relations
Jerry Daly and Carol McCune
703/435-6293