Mr. John Q. Hammons Expands Plans with Two Upscale Hotels and Convention Center in Pleasant Grove, Utah

Burgeoning Leisure and Business Growth in Utah Supports Anticipated Demand for
Additional Hotel at Utah County’s $350 Million Intersection

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PLEASANT GROVE, Utah, and SPRINGFIELD, Mo. – Jan. 9, 2007 – At a press conference today, Mr. John Q. Hammons announced his expanded vision for developing 520 hotel rooms and more than 100,000 combined square feet of flexible meeting space in burgeoning Pleasant Grove, Utah, about a half-hour’s drive from Salt Lake City International Airport.  Mr. Hammons recapped his plans to build a 10-story, 300-suite Embassy Suites Hotel® along with an adjoining convention center.  He also added a new dimension to development plans with his announcement to build a 10-story, 220-room Courtyard® by Marriott®.  The first development of its kind in the city, the hotels and convention center will be owned by Mr. Hammons, and they will be managed by Springfield, Mo.-based John Q. Hammons Hotels & Resorts, LLC, the nation’s leading independent builder, developer, owner and manager of upscale, full-service hotels, resorts and suites (www.jqhhotels.com ).  

Construction of the all-suite, luxury Embassy Suites Hotel and the convention center is expected to kick off in June 2007 with an anticipated opening in October 2008.  The groundbreaking for the Courtyard by Marriott is slated for 2008 followed by a 2009 debut.  Once operational, the facilities are expected to create the equivalent of 350 to 400 full-time jobs.

Strategically located in Utah County (pop. approx. 415,000) at what is being touted as the area’s $350 million intersection*, the development is a short distance from major cities, including Salt Lake City (downtown 28 minutes), and will be an ideal lodging choice for group, business and leisure travelers.  The hotels and convention center will also be easily accessible from Brigham Young University (12 minutes) and Utah Valley State College (eight minutes), comprising a combined student population of more than 70,000.  In addition to Salt Lake City International Airport, the site is in close proximity to the Provo Airport.  The development also is near major business hubs and popular ski destinations, such as Alta and Snowbird Ski areas (35 minutes), Park City Ski area (40 minutes), and Sundance Ski area (25 minutes).  Located nearby are several large corporate demand generators such as Novell, Nu Skin, Altiris and IM Flash.   

Source: *Pleasant Grove City Economic Development Web Site

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In a 2006 special report on “The Best States for Business,” Forbes magazine ranked Utah #4.  The significant hotel and convention center development represents Mr. Hammons’ entrée into Utah.

“The time is right to build upscale accommodations to meet the demand of the impressive growth being experienced by Utah County.  We foresee that growth continuing and requiring an additional hotel property beyond our initial plans,” said Mr. Hammons, founder, chairman and chief executive officer of John Q. Hammons Hotels & Resorts, LLC.  “The John Q. Hammons brand is known for exceeding guests’ expectations.  We will leverage the breath-taking mountain landscape and four-season recreation environment afforded by the area to complement the overall guest experience.”

Combined, the hotel and convention center development spans 37 acres at the base of Mount Timpanogos, offering panoramic mountain views from every angle.  Conveniently located in the southeast quadrant of the intersection of I-15 and Pleasant Grove Boulevard, the hotel site is adjacent to a planned 1 million-square-foot lifestyle center.  The future upscale shopping destination will provide a mix of entertainment, restaurants and national and local retailers for the community and tourists of the area ski resorts.  The anchor tenants have yet to be announced.

“We share Mr. Hammons’ vision for the amazing growth potential of the area and believe his 49 years in hotel development and his world-renowned track record will benefit the entire county,” said Mayor Michael Daniels, city of Pleasant Grove. 

Grove Convention Center Fact Sheet

July 5, 2006 John Q. Hammons announced his plans to build a $101M hotel convention center in the new
Gateway Center in Pleasant Grove, Utah. The project, patterned after his operation in Frisco, Texas, will have two
hotels, several restaurants, and a 116,000 square foot convention center.

The Project (Source: John Q. Hammons International website)

• Groundbreaking planned for mid 2007
• Grand opening in March 2009
• Embassy Suites 320+ room hotel (one of only three 5-Star hotels in Utah)
• A second hotel with 220-rooms will be completed by September 2010
• 38,000 square fot ballroom with banquet seating for 2,700
• 24 meeting rooms

The Location (Source: Pleasant Grove City Economic Development)

• Pleasant Grove, Utah is surrounded by 400-high tech businesses
• Also coming to the Gateway Center will be a lifestyle center, office park, and auto mall
• The Convention Center site is 25-minutes from the Salt Lake International Airport
• The population within a 25-minute commute exceeds 700,000

The Company (Source: John Q. Hammons International website)

• John Q. Hammons owns 60-hotel properties in 23-states (http://www.jqhhotels.com/)
• Hammons is America's #1 developer of privately-owned hotel convention centers
• 45-years in the hospitality business

The Impact (Source: Lewis, Young, Robertson, and Burningham, Investment Bankers)

• The two hotels are projected to generate $41M annually in room revenues
• The convention center is expected to generate $9.8M annually in sales
• Restaurants connected to the project are expected to have annual sales of $4.7M annually
• Associated retail outlets will have annual sales of $2M

Contacts

• Pleasant Grove Mayor, Mike Daniels, 801-785-5045
• Pleasant Grove City Administrator, Frank Mills 801-785-5045
• Pleasant Grove Economic Development, Richard Bradford, 801-361-0723
• John Q. Hammons Hotel Properties, 417-864-4300