Dallas - Patriot American Hospitality, Inc., whose shares are paired and trade with those of Wyndham International, Inc., announced its joint venture agreement with Miami Lakes, Florida-based Don Shula's Steak Houses, Inc. to expand the Shula's Steak House brand as the signature food and beverage amenity in several of Patriot's Wyndham and Interstate hotels. Patriot American will own a 49% interest and Shula's will own a 51% interest in the Shula's Steak House entity, with immediate plans calling for expansion of up to 12 restaurants each year in carefully selected hotel locations, primarily those owned by Patriot American. The Patriot American/Shula's joint venture encompasses two proprietary restaurant concepts: Shula's Steak House, a nationally recognized, upscale dining establishment, and Shula's Steak 2, a casual steak restaurant and sports bar.
Since early 1997, Patriot American has introduced the Shula's Steak House concept in four of its owned hotels including the Wyndham-Tampa; the Troy Marriott in (Troy) Detroit, Michigan; the Hilton in Cleveland; and, the Omni in Baltimore. According to Thomas W. Lattin, executive vice president of Wyndham International, "We have enjoyed dramatic increases in food and beverage revenues at our Patriot-owned hotels which feature a Shula's Steak House, from traditional hotel restaurant volumes to annualized volumes of several million dollars per hotel. Given that Shula's is forecasting 1998 revenues of more than $35 million with 11 restaurants already open, we are excited about the growth prospects afforded by this joint venture and we look forward to showcasing Shula's as our signature steakhouse restaurant throughout our portfolio of upscale hotels," he said.
Mr. Lattin also noted that the Patriot-owned hotels featuring Shula's restaurants have enjoyed not only higher food and beverage revenues, but have experienced increased occupancy and room rates as well. "This concept is very appealing to corporate and business travelers, which is our target customer, and as such, the concept gives us another point of competitive differentiation over other hotels," he said.
Opened in Miami Lakes, Florida in 1989, the original Shula's Steak House was the creation of David Younts and Don Shula, former coach of the Miami Dolphins football team. Going forward, Shula's Steak House, Inc. will be operated by Coach Shula and his son, Dave Shula, former head coach of the Cincinnati Bengals football team. Nationally known for its famous "48-Ounce Porterhouse Club", a select group of nearly 6,000 gourmands who each have finished the restaurant's signature 48-ounce porterhouse steak in one sitting, Shula's offers its guests a wide selection of Certified Angus beef entrees in a decidedly upscale setting. Its new counterpart, Shula's Steak 2, offers a more casual, sports-themed atmosphere with state-of- the-art video walls housing dozens of big-screen televisions, as well as its signature steak entrees. Since 1989, Shula's Steak Houses have been introduced in Tampa, Troy (Detroit), Baltimore and Miami Beach. Shula's Steak 2 restaurants have been opened in Miami Lakes, Cleveland and Baltimore; an additional Shula's restaurant, Shula's On The Beach, overlooks the Atlantic Ocean in Fort Lauderdale.
"Our joint venture with Patriot American represents a perfect opportunity for us to further our expansion plans with one of the best-managed companies in the lodging industry. We have had tremendous success with our restaurants in Patriot's hotels, and we are confident that as a newly formed 'team', both Patriot American and Shula's will realize long-term benefits from the aggressive expansion of the Shula's concept," Coach Shula said.
According to Dave Shula, while Patriot American's hotels represent the majority of Shula's targeted expansion, the growth of this restaurant concept is not limited to Patriot American's properties. However, as a joint venture partner, Patriot American will benefit from further expansion of the Shula's Steak House and Shula's Steak 2 concepts.
About Patriot American Hospitality, Inc. and Wyndham International, Inc.
Based in Dallas, Texas, Patriot American Hospitality, Inc. is currently the nation's second-largest hotel real estate investment trust (REIT) with a portfolio comprised of 461 owned, managed, leased or franchised hotels with more than 107,000 rooms. Wyndham International, Inc., comprised of the Luxury Hotel Division, the Wyndham Hotel Group, and the Asset Management Group, leases, manages and franchises primarily upscale hotel and resort properties represented by its proprietary brands, and provides management services for third-party owned hotels and resorts.
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