WEST HARTFORD, CT— Konover Hotel Corp. has expanded in a big way, effectively tripling its portfolio, with the recent acquisition of a portfolio 15 hotels in the Midwest from Focus Hospitality Services. Prior to the transaction, Konover’s portfolio consisted of five hotels and an exposition center, which are all located in Connecticut and Massachusetts. An affiliate of the Valparaiso, IN-based Focus will remain as a joint venture partner of Konover Hotel, which will manage the hotels. Konover Hotel is a division of Konover Properties Corp., a privately held real estate firm that builds, owns and manages commercial and residential properties. The purchase price for the 15 hotels, which comprise 1,103 rooms, was $80 million, according to Peter Mason, vp of Konover Hotel Corp. “We as a company have been looking to strategically grow. We were out looking and came across this portfolio,” Mason said. “They are young properties that are well positioned and market leaders.” Located in Indiana, Kansas and Michigan, the acquired hotels were built within the last six years, Mason noted, and are situated at key interstate highway locations and in areas with strong corporate and leisure business. While most are Holiday Inn Express hotels, the portfolio’s properties also include two Hampton Inns, a Country Inn & Suites by Carlson, a Super 8 and an independent hotel, the Carlton Lodge in Adrian, MI. “Other companies in the market to buy hotels tend to overlook the Midwest. They feel it’s not attractive so they look at bigger cities,” Mason said. “We see this acquisition as an exciting opportunity and expect the hotels to do well.” Two of the acquired hotels are in Kansas City, KS, which Mason described as a “booming” market. “The group of hotels we purchased includes a Holiday Inn Express and Hampton Inn located in a Kansas City development complex called The Legends, which has stores, restaurants, entertainment and a Great Wolf Lodge among other things. We’ve very bullish about that market,” he said. In terms of current performance of the 15 hotels, “the portfolio runs a little over $90 in terms of ADR and in the 50s in occupancy as a group.” Although none of the acquired hotels are old— one just opened last year— Konover will be doing some renovations at each property “to keep them market leaders,” Mason said. “Structurally they’re in good shape. We’ll be doing some refreshing of soft goods, carpet, things of that nature.” Prior to the purchase of the properties in the Midwest, Konover Hotel’s portfolio included the 113-room Days Inn in Middleboro-Plymouth, MA, and five properties in Connecticut that include the 112-suite Centennial Inn in Farmington, the 78-room Microtel Inn & Suites in Bethel-Danbury, the 120-room Microtel Inn & Suites in Uncasville, the 237-room Sheraton Bradley at Bradley International Airport in Windsor Locks and the Connecticut Expo Center in Hartford. Business at these hotels has varied this year depending upon the market, according to Mason. “Some are up significantly and some are up a small amount,” Mason said. “For example, the Microtel in Uncasville is up significantly because it is near the Mohegan Sun Casino and Foxwoods and demand is good.” Business has been softer at the Days Inn in Middleboro-Plymouth, Mason noted. “It is near Cape Cod and leisure travel there has been off,” he said. Overall, Mason feels Konover’s hotels in New England will do well in 2007. “We expect business will be up because of different demand generators. At Uncasville, demand will continue, and on the Cape, demand will come back,” he said. A $5-million renovation program underway at the Sheraton Bradley will boost business there, he added. “We renovated the conference floor in 2005, and in 2007 we’ll start major renovations of the guestrooms and public space,” he said. There will be more growth for Konover in the future, according to Mason. “We’re looking at other acquisitions, individual properties and groups,
