MILWAUKEE–July 29, 2015– The Marcus Corporation (NYSE: MCS) today announced it has signed an agreement for the sale of the Hotel Phillips in Kansas City, Mo. to an affiliate of Chicago-based Arbor Lodging Partners, a national owner and manager of hotels that makes both debt and equity investments in hospitality properties. Terms of the transaction were not disclosed.
The Marcus Corporation has successfully owned and managed the 217-room Hotel Phillips for the past 14 years. Shortly after purchasing the historic hotel, the company completed an extensive renovation and added new guest amenities. A landmark in downtown Kansas City, the hotel also offers approximately 11,000 square feet of flexible meeting and pre-function space, a restaurant and a lounge.
“We consider this a highly strategic opportunity to acquire this beautiful historic hotel in Kansas City and to contribute to the future growth of the downtown area. The Hotel Phillips will be an excellent addition to our growing portfolio of many types of hotels nationwide,” said Vamsi Bonthala, chief executive officer of Arbor Lodging Partners. “As with other historic properties in our portfolio, we are planning a comprehensive renovation and the hotel will be managed by NVN Hotels, our hotel management affiliate.”
“The decision to sell the Hotel Phillips is consistent with our overall corporate strategy of constantly evaluating each of our owned hotels to ensure we are maximizing shareholder value, while also focusing on growth through new management contracts,” said Gregory S. Marcus, president and chief executive officer of The Marcus Corporation.
The sale and transition of management is expected to occur on or about September 1, 2015.
