Haz Subsidiary Plans Share Exchange Deal

FEDERAL WAY, WA-Haz Holdings Inc., a locally based hotel owner traded on the Over-The-Counter Bulletin Board says its wholly owner mortgage brokerage Mortgage and Financial Institute LLC intends to enter into a share exchange agreement with an undisclosed public company. The process is expected to take two or three months, with Haz maintaining majority control of the mortgage brokerage. Haz Holdings CEO Karim Bhanji says the exchange “will allow MFI’s management to focus more on expanding MFI’s mortgage business.”

Earlier this month, Haz Holdings and Oncology Med Inc., also a Seattle-area company traded on the OTCBB, completed a reverse merger where in Haz Holdings shares were converted to Oncology Med shares and Oncology changed its name to Haz Holdings. The combined company owns three mid-range business hotels–two in Texas and one in Canada–operating under the brand names “Hotel Marquis & Suites” and “Marquis Inn & Suites.” Management estimates its hotel portfolio current market value of $16 million and its 2006 revenue at $4 million dollars.

Bhanji said at the time that the merger will allow the company to focus on its goal of acquiring up to 75 corporate-owned properties and franchising its corporate hotel brand to 155 properties throughout North America over the next five years. The company is looking to acquire hotels with between 100- and 300 rooms while also franchising additional hotels under its brand names. Bhanji says the company’s near-term strategy is to acquire properties at below replacement value and leverage its holdings toward further expansion.

In February, Oncology Med Inc. said its Haz Holdings was in negotiations to acquire 500 additional rooms in four full-service hotels throughout the Midwest for $10 million. A company source tells GlobeSt.com those negotiations are ongoing. Last week, it entered into a letter of intent a 100-room hotel in Ohio that may move forward more quickly, according to the source.

As for its existing properties–the 174-room Hotel Marquis and Suites Intercontinental Airport hotel in Houston, the 203-room Hotel Marquis Airport in San Antonio and the 30-room Marquis Inn & Suites in Edmonton, Alberta, which includes 70 spots for recreational vehicles–Haz Holdings recently announced agreements with Air France, American Airlines, China Airlines and Continental Airlines to provide accommodations to stranded air travelers from George Bush Intercontinental Airport (Houston) and San Antonio International Airport.

In addition to its hotels, Haz Holdings portfolio includes the following wholly-owned subsidiaries: Nationwide Hotel Management LLC, a hotel management company; KB Realty Group International LLC, a commercial and residential real estate sales company; Evergreen Sound Construction LLC, a commercial and residential development company; and DoTravelDeals.com (www.dotraveldeals.com), a global travel booking engine.