Vacation Break completes initial public offering; acquires beach resort in Pompano Beach for $3.3 million

Business Wire, Jan 18, 1996

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Jan. 18, 1996--Vacation Break U.S.A. Inc. (NASDAQ:VBRK) recently completed an initial public offering of 1.8 million shares of common stock at $5 per share lead by underwriters Josephthal, Lyons & Ross and Cruttenden Roth Inc.

In addition, Vacation Break has announced the purchase of the Ocean Ranch Hotel & Villas in Pompano Beach, Fla. The company plans to convert the hotel into an upscale vacation ownership resort.

Vacation Break, with a joint venture partner, purchased the 3.25-acre beach front property from private owners for $3.3 million. Vacation Break assumes management of the property as part of the transaction.

"We are excited that Vacation Break is continuing to expand its operation and offer our clients another quality vacation destination," said Ralph Muller, chairman and chief executive officer of Vacation Break.

An $11 million refurbishment and new construction project at the resort is scheduled to begin in June and is expected to be completed by the spring of 1997. Vacation Break will renovate much of the existing hotel and build primarily one- and two-bedroom villas, as well as upgrade resort amenities and landscaping.

Sales are expected to commence this summer on 98 vacation ownership units, representing from 4,900 ownership weeks, which are expected to range in price from $8,500 to $13,000 weekly. Occupancy is expected to begin in the first quarter of 1997.

Owners will have access to amenities at the adjacent Santa Barbara Resort and Yacht Club, also developed by Vacation Break. In addition, vacation owners at the resort will have access to the company's fleet of pleasure boats, including a 77-foot Hatteras luxury yacht, a 72-foot custom-built yacht, a 45-foot Hatteras sport fishing yacht, and a 48-foot Viking sport fishing yacht.

Vacation Break, founded in 1985, is one of the largest developers of vacation ownership resorts in the United States with resorts in South Florida, Orlando and Grand Bahama Island. Vacation Break U.S.A. Inc. has been publicly traded on the Nasdaq national market since Dec. 21, 1995, under the symbol VBRK.

CONTACT: Vacation Break U.S.A. Inc., Fort Lauderdale

Kymm Ramirez, 954/351-8580