Press Release
April 24, 2001
ANNAPOLIS, MD -- Thayer Hotel Investors yesterday announced its largest investment to date of $547 million in development
and construction of a 450-acre resort in Orlando, Florida, which will include a 585-room Ritz-Carlton hotel and
a 1000-room JW Marriott hotel.
The resort will be the city's single, largest and most luxurious hotel development.
The Grande Lakes Resort, which will also include a 40,000 sq. ft. health spa facility and Greg Norman-designed
golf course, will be one of Marriott International's largest hotel properties.
``Orlando is a global destination with a need for luxury accommodations,'' said Leland C. Pillsbury, cofounder
and president of Thayer Hotel Investors. ``We've found a truly underserved, niche market in Orlando and are looking
forward to establishing a presence there.''
The investment in the resort stems from Thayer Hotel Investors desire to utilize a portion of its current investment
fund for the development of luxury hotels. Thayer commissioned extensive research and found several factors that
were highly likely to contribute to a strong return on this investment.
First, the demand for rooms in Orlando, the second largest hotel market in the world, has grown at a rate of 6-7
percent per year, while the supply has only increased two percent per year. Second, Orlando is an international
tourist and convention site that is continuously growing.
Third, the Orange County Convention Center, which is currently being expanded, is the second largest in the country
and larger than any planned facility in other markets such as Las Vegas and Washington, DC, creating additional
need for what the resort has to offer.
``This is an exciting joint venture opportunity for Thayer and Marriott, one that differentiates Thayer Hotel Investors
and increases the value of its portfolio,'' said Frederic V. Malek, chairman and cofounder of Thayer Hotel Investors.
``Thayer's hotel investment experience and Marriott's exceptional ability to manage large hotel and convention
sites will establish the Grande Lakes Resort as an instant market leader and the resort of choice in Orlando.''
``We expect this resort will be one of our most important properties and, as always, we're bringing in a top-quality
management team to ensure our success,'' said J.W. Marriott, Jr., chairman and CEO of Marriott International. ``The
strength of our partnership with Thayer Hotel Investors enables us to deliver the experience of a luxurious Marriott
setting and high quality service to our guests and provide exceptional returns to our investors.''
The self-contained resort, with its 25-story JW Marriott and 12-story Ritz-Carlton, will be equidistant between
Universal Studios and Walt Disney World and is positioned closer than any other resort hotel to the Orlando International
Airport. The two hotels will have a combined 112,000 sq. ft. of meeting room space, a 40,000 sq. ft. spa, an 18-hole
Greg Norman-designed golf course and a 2,000 sq. ft. children's club and outdoor playground.
The resort is expected to open in July 2003.
About Thayer Hotel Investors
Thayer Hotel Investors and related entities, based in Annapolis, Maryland, is a privately held real estate investment
company with total assets of nearly $2 billion and a portfolio of 21 hotels.
Thayer invests in quality hotel properties for its portfolios, seeking to enhance the cash flow and value of such
assets through repositioning, renovation and capital investment, rebranding and management improvements of the
properties.
Its nationwide portfolio includes hotels operating under the Marriott, Ritz-Carlton, DoubleTree, Embassy Suites,
Sheraton, Courtyard, Residence Inn and Fairfield Inn flags.
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Contact:
Thayer Hotel Investors, Annapolis
by
Burson-Marsteller
Kerry Patzke, 202/530-4524