Press Release
May 10, 2001
Memphis, TN -- ResortQuest International, Inc. (NYSE: RZT), the world's largest vacation rental property management
company, yesterday 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.
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, Bradenton, Captiva Island, Destin, Ft. Myers, Ft. Myers Beach,
Longboat Key, Marco Island, Naples, Navarre Beach, Okaloosa Island/Ft. Walton Beach, Orlando, Pensacola, New Port
Richey, 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.; Gatlinburg and Pigeon Forge, Tenn.; 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
Investor Relations Contacts:
Mitch Collins / David Selberg, 901/762-0600
or
Sloane & Co.
Jennifer Ritter, 212/446-1889
Media Contacts:
Dan O'Connor, 212/446-1865