Marcus Hotels and Resorts opened its renovated Hotel Phillips in Kansas City, MO Sept. 14. Meanwhile, the chain's $30-million capital improvement program includes renovations to The Pfister Hotel here as well as a parking garage at the Hilton Milwaukee City Center. Besides renovating 355 guest rooms, Grand Geneva Resort & Spa in Lake Geneva, WI is expanding its full-service spa and sports center.

Revenue per available room for the firm's Baymont Inns was down 6.7% for the quarter ending Feb. 28, while Marcus Hotels and Resorts saw a 10.4% decline compared to the same period of a year ago. Both are better than the national averages, says chairman and chief executive officer Stephen H. Marcus.

"Our locations," Marcus says, "are benefiting from people staying close to home." That is exemplified by the Lake Geneva properties, which draw visitors from both Chicago and Milwaukee.

While a Baymont in Chicago's River North neighborhood continues in the early development stage, Marcus Corp. may look to sell some Baymont Inns that are dragging down earnings, Marcus says. While the River North Baymont is part of a $50-million-plus building program this year, Marcus adds the emphasis will shift to building the firm's hotel management business.

Meanwhile, the theater division's nearly $10-million profit for the quarter more than offset the nearly $2 million in losses suffered by the hotel divisions. "It seems like Hollywood's found the right formula for movies," Marcus says.