Ayres and Esping are long time partners in numerous hotel development projects in Florida and Colorado. Since 2000, Esping and Ayres have held a five-year lease on the two properties with a purchase option.

Vero Beach is recognized as an elegant, exclusive enclave and one of Florida's last undiscovered seaside villages. Both hotels are located on the Atlantic Ocean in the heart of the Vero Beach village.

"After a year-and-a-half in the Vero market we realized that the area was ready for our type of upscale project and we decided to accelerate our purchase," said Esping.

The new owners' plans for the hotels include capital improvements and image repositioning.

"Our goal for the hotels is to create a product that is consistent with Vero Beach's current position in the worldwide tourism marketplace, as well as with the community's goals for careful tourism development," Ayres said. His company, Coral Hospitality www.coralhospitality.com, will manage the hotels and, through Coral Hospitality's marketing subsidiary the Coral Collection of Fine Hotels & Resorts, provide the hotels with a comprehensive international marketing program.

In addition, Esping and Ayres plan to create special dining and activity programs exclusively for the local community.

The 106-room Palm Court Resort, which will be renamed, is located on the beach and Atlantic Ocean in the heart of Ocean Drive's beachside shops and features a swimming pool and sundeck, ocean view restaurant and a range of meeting space. The resort is undergoing a $3.5 million renovation to transform it into a beachfront resort with a lively activity program. Since taking over management of the hotel in 2001, the owners have increased revenue by 22% and operating profits by 77%.

The recently renamed Vero Beach Hotel & Club has 54 one- and two-bedroom suites, most with ocean views. Poolside breakfast is offered in the Lanai room, and casual meals and libations can be enjoyed in the Seabreeze Bar and Grille. Following capital improvements, the hotel will serve a discriminating clientele accustomed to five-star service. Its amenities and services will be similar to those expected at Relais & Chateaux hotels, and to properties honored with Mobil 5-Star and AAA 5-Diamond Awards.

Marc B. Bauer serves as managing director of the Palm Court Resort and Vero Beach Hotel & Club, and is headquartered at Palm Court Resort.

Ayres's and Esping's other hotel projects include the Edgewater Beach Hotel in Naples, Fla., Naples Inn & Suites, Overlook Lodge in Steamboat Springs, Colo., and Chesapeake Resort in Islamorada in the Florida Keys.

An example of the success of their joint ventures is the Edgewater Beach Hotel. When the partners purchased the hotel in 1988, it had a net operating income of $750,000 and had undergone four recent management turnovers. In 1998, the hotel was sold to a Fortune 500 investor for $43 million, or $341,000 per key. The net percentage of operating profits was one of the highest in the world for a luxury hotel, at 42.5%.

Media Contact: Beth Preddy
Beth Preddy Public Relations, Inc.
(239) 435-3938; email bpreddy@coralcollection.com