BUCKHEAD AMERICA TO ACQUIRE MANAGEMENT CONTRACTS COVERING 12 HOTELS IN MISSOURI AND KANSAS

Source: Buckhead America

Buckhead America Corporation, the hospitality services company, said it agreed to acquire management contracts covering 12 limited-service hotels comprising 812 rooms in Missouri and Kansas from Quality Lodging LLC, Kansas City, Mo., a closely held hotel developer.

Purchase price wasn't disclosed, but it is a combination of cash and Buckhead America stock valued at a minimum $7 a share. The transaction would bring the total number of hotels under management by Buckhead America to 56. Buckhead America assumed management of the properties effective July 1, pending completion of the transaction, which is expected within 30 days.

Buckhead America and Quality Lodging already were partners in the development of Buckhead's Country Hearth Inn lodging system. Quality Lodging previously agreed to develop 12 Country Hearth Inns in a five-year period with options for an additional 22 properties. Two of these properties have opened and three more currently are under development.

Under the latest agreement, Buckhead America also would manage future Country Hearth Inns developed by Quality Lodging, which is one of the most active limited-service hotel developers in the Midwest.

Gary Sirna and Stephen Danner, principals of Quality Lodging, said, "The acquisition of these management contracts by Buckhead America frees our staff and resources to concentrate on accelerating the development of new Country Hearth Inns. Our initial properties have been received very well, and we are committed to establishing a strong presence for the Country Hearth Inn brand in the Midwest."

Country Hearth Inns are mid-priced hotels that serve both the business traveler and vacationer. The hotels combine the homey atmosphere of a bed- and-breakfast, including an expanded complimentary breakfast, manager's reception and free local telephone calls, with the convenience of a modern hotel. Buckhead America is expanding the chain through franchise sales and company development.

Douglas C. Collins, chairman, president and chief executive officer of Buckhead America, said, "This transaction exemplifies the synergy between our hotel management and franchising operations. We have added attractive, profitable properties to our growing hotel management portfolio, while at the same time speeding up growth of the Country Hearth Inn lodging system in the Midwest."

The 12 management contracts cover eight Super 8 hotels and four Country Hearth Inns.

Buckhead America is a diversified hospitality services company whose holdings include the 45-hotel Country Hearth Inn lodging system and 30 additional hotels owned, leased and/or managed.

Buckhead America common shares trade on the Nasdaq National Market System under the symbol "BUCK."