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PM HOSPITALITY STRATEGIES TURN-AROUND EFFORT CONCLUDES

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									PM HOSPITALITY STRATEGIES TURN-AROUND EFFORT CONCLUDES
SUCCESSFULLY

                                                                      May 23, 2000
                             FOR IMMEDIATE RELEASE

LAUREL, MD (May 23,2000) PM Hospitality Strategies, an Alexandria based hotel
management company, recently completed their management of the Quality Inn and
Suites in Laurel, Maryland. Through employee pride, management, and teamwork,
PMHS made their first takeover project a great success.

Recent winner of the Gold Award given by Choice Hotels International (Choice) for its
excellence in hotel operations at the nearby Comfort Suites – BWI Airport Hotel, PM
Hospitality Strategies knew going into the year that 1999 would be busy. PMHS already
was deep into the renovation of its Fairfield Inn – Capital Beltway/I-95 North, also in
Prince George’s County along with the early stages of pre-opening efforts for its first
full-service upscale hotel, the Embassy Suites – Newark/Wilmington South in Delaware
along with. Shortly after the New Year ‘99, Choice’s franchise service representative
approached Greg Miller, Chief Operating Officer, with the following question, “Could
PMHS’ turnaround a struggling Choice affiliated hotel in Laurel, Maryland?”

The Quality Inn and Suites - Old Town Laurel was purchased by a small local real estate
concern that was aware of the city’s desire to improve its Main Street appeal. An
impediment to the Laurel Main Street plan was a 25-year-old Howard Johnson’s hotel
that had fallen into disrepair and sat right at the entry point to Old Town business
cooperative. Utilizing available government assistance funds, that local real estate
concern acquired the hotel and initiated renovations to upgrade and “reflag” it. Along
with some significant free press for its managing partners, the local real estate concern
was successful in securing a Quality Inn & Suites franchise through Choice for the
property.

Unfamiliar with hotel operations, this real estate company quickly found it was ill
prepared to deal with the extraordinarily competitive environment for hotels in and
around Laurel (due to major supply increases in surrounding areas of BWI Airport and
Columbia). Correspondingly, the hotel was well behind its revenue targets. The owners
come operators turned to Choice for their recommendation in securing a professional
hotel operations group able to rise to the challenge. Choice named three hotel
management firms, but the local group was most impressed with PMHS’ operating
philosophies, scale and record of high-quality guest service from its first endeavor.

Just two weeks later on February 3, 1999, PMHS took over operations. “In the past,
PMHS had been developing and managing our own properties. With Laurel, we had to
quickly analyze the situation, source the greatest threats to revenue and turn it into a guest
service oriented hotel comparable to our others,” said Chief Operating Officer Greg
Miller, “Although we had a product via the hotel, we had to start from scratch in every
other regard.” Sales materials, employee records, and training materials were haphazard.
Pmhs Concludes Management of Quality Inn/ Laurel(cont’d)                    May 22, 2000

“We weren’t even given any prior financial records—just a summary of checking
activity. Given the most urgent matter of increasing revenue, it was Choice that provided
the most meaningful documents. Immediately, we were focused on gaining customer’s
preference and loyalty. Within 60 days, we really turned things around.”

Attesting to the difficulty of the task, occupancy had fallen as low as 12% despite rates
around $25. Before PMHS’ arrival, the employees were unmotivated and destructive. A
good management team was the first thing needed, and Tom Balloch, a veteran General
Manager of Choice affiliated hotels, was a natural choice to head the team. On takeover,
existing employees were introduced to PMHS standards for guest-service including its
HOST program [an acronym which stands for ‘Honoring Outstanding Service
Traditions’]. Base wages were increased to match those of area hotels and all were given
the opportunity to earn incentives on top of the base. The early going was a struggle to
gain the trust of the employees and to get them to adapt to our principals.

Miller and Balloch’s persistence paid off. Quality Inn and Suites immediately began
increasing occupancy and rates. Along the way, the hotel won two prestigious awards:
top standing in the Signature phone shopping service for the entire Northeast region, as
well as the House-Keeping Award for the Northeast region.

On May, 11, 2001, Pramukh Partners, a closely held owner/operator bought the Quality
Inn and Suites. During PMHS’s tenure, the team increased Quality Inn and Suites by
50% in its first year and improving anther 22% over our own growth the next year!
“Taking on a truly difficult hotel and turning it around gives me great confidence in our
team and our formula for success. We ended our assignment completely on budget,
having increased the Gross Operating Profit three-fold,” Greg Miller remarks. “We feel
that the hotel is in great shape for the new owners and wish them well in their service
effort.”

                                           ###

FOR MORE INFORMATION CONTACT:
Greg Miller, Chief Operating Officer
Phone:        (703) 683-8800 ext. 102
Fax:          703.548.4257
e-mail:       gmiller@pmhs.com

								
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