ATLANTA? Buckhead America Corp. is entering 2000 in strong financial condition and with profitable hotel franchising and management operations, according to Douglas Collins, chairman/president/CEO. ?Despite very competitive markets during 1999, our franchising and management activities grew significantly and generated operating profits for the first time,? he said. When all the figures are in, Collins predicted 1999 revenues will show a 15% increase from 1998 to about $32 million. He anticipates another 15% gain to about $36 million in 2000. The July 1999 sale and leaseback of a 150-room Country Hearth Inn in Orlando contributed to Buckhead America?s strong balance sheet, according to Collins. The deal generated total cash proceeds of approximately $5.7 million. ?We now have the cash flow to take advantage of opportunities we see in 2000,? he said. Buckhead America acquired the five-unit Country Hearth Inn chain in 1994 and is expanding it nationally through franchising and company-owned development. ?It takes a while to build a business and the brand is primarily new construction, but we?re now seeing the fruits of our efforts,? Collins said, noting that Buckhead America ended 1999 with 50 Country Hearth Inns, up from 37 a year earlier. An additional 26 properties are under development and expected to open this year. ?We were very successful during 1999 in identifying strong master development partners,? Collins said. A total of 106 additional Country Hearth Inns are committed under various master development agreements, he indicated. Country Hearth Inn marketing has focused on its 40-unit Rural Gold prototype hotel aimed at smaller, rural markets. There are currently 18 Rural Gold properties, up from 11 at the end of 1998, and master developer commitments for more than 60 additional sites. In 1999, Buckhead America faced the most competition in areas where it had highway locations ?which is why we are focusing on rural development with the Rural Gold properties,? Collins said. Lodge Keeper Group, Buckhead America?s hotel management subsidiary, disposed of four older properties and added 17 new hotels to its portfolio in 1999. In July, it acquired management contracts covering 12 limited service hotels in Missouri and Kansas from Quality Lodging LLC of Kansas City, MO, a hotel developer. At year?s end, Lodge Keeper had 53 properties under management, up from 40 at the end of 1998. Lodge Keeper expects to add 25 to 30 new properties to its management portfolio this year, according to Collins. Lodge Keeper manages hotels under 10 national franchise brands including Country Hearth Inn, Ramada Inn, Days Inn, Best Western, Super 8, Suburban Lodge, Travelodge, Howard Johnson and Villager Inn.
