Marshall Mgmt Plans To Increase Size By 50%

SALISBURY, MD— Marshall Management unveiled new growth plans to increase its current managed hotel portfolio by as much as 50% from 20 hotels currently to between 30 and 35 properties within the next several years. The new growth initiative follows the recent joint decision to terminate a proposed merger with Toronto-based AFM Hospitality Corp. To support the strategic growth program, the company has strengthened its operating management, marketing and development teams and will offer a unique, performance-based management contract program to build its third-party contract base. To head up the company’s new growth initiatives, Marshall Management has hired Scott McMahon as vice president of development. Previously, he was national sales director for USFS. Executives at Marshall said they expect 2003 to be another difficult year for the hospitality industry, and as such, underperforming hotels— specifically urban properties— will likely seek “experienced” operators. To attract urban properties, the company has introduced a new, third-party, performance-based management contract. Called the Marshall Performance Plan, the new contract will be highly flexible and creative in its mix of base and incentive fees, said the company. In addition, Marshall Management has the ability to invest equity with owners for selected management contracts. The company plans to focus on urban, full-service properties with 150 to 350 rooms, as well as premium limited-service brands in suburban and secondary markets.