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Statement: Canyon Ranch Living and Penrose terminate relationship in Bethesda
TUCSON, Ariz. (Sept. 27, 2006) β Following its 30-day evaluation, and with much reluctance, The Penrose Group, the developer of the Canyon Ranch Living facility planned for Bethesda, MD, has determined not to continue with the project as planned. As a result, Canyon Ranch and Penrose have terminated their partnership and have suspended plans for the project at this time. Those who already made deposits for units in Bethesda will receive full refunds.
The cancellation of the plans for Canyon Ranch Living β Bethesda comes as a great disappointment to us. However, because Canyon Ranch Living was well received in the Bethesda market, we still believe in the potential of the project there and the long-term real estate fundamentals of the greater Washington DC marketplace. Therefore, while there are no immediate plans to discuss we are exploring other options. We believe the success of the Canyon Ranch Living community in Miami Beach, which has exceeded sales expectations, provides further proof that more and more people are seeking wellness and balance in their lives and want to live where their values are shared and promoted.
We are planning to announce additional locations for Canyon Ranch Living facilities in the future and are excited about these new developments.
Q&A
| Q: |
Why was the partnership terminated? |
| A: |
The developer determined that due to increased construction costs in the area, local government regulations, and a slow down in the condominium market in greater Washington, DC, the timing was not right to launch the project as it is currently designed and structured. However, itβs important to note that Canyon Ranch Living was well received in the Bethesda market, and we are exploring other options.
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| Q: |
What does this mean for the long-term viability of the business model? |
| A: |
This situation is very specific to the development of the planned facility in Bethesda and the current real estate environment of that marketplace. We believe the success of the Canyon Ranch Living community in Miami Beach, which has exceeded sales expectations, provides further proof that more and more people are seeking wellness and balance in their lives and want to live where their values are shared and promoted. We are planning to announce additional locations for Canyon Ranch Living facilities in the future and are excited about these new developments.
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| Q: |
How are buyers affected? |
| A: |
The developer of the project will refund the deposits to all contract holders. |
About Canyon Ranch
Canyon Ranch has been offering healthy, active vacations for more than 26 years. The life-enhancement company has two destination health resorts β the original, which opened in Tucson, Ariz., in 1979, and a second, which opened in Lenox, Mass., in 1989. The company also operates three Canyon Ranch SpaClub fitness, spa and wellness facilities located in The Venetian hotel in Las Vegas, at Gaylord Palms resort in Kissimmee, Fla., and onboard the Queen Mary 2 luxury ocean liner. In early 2007, the first Canyon Ranch Living residential community will open in Miami Beach. Additional information is available at www.canyonranch.com.
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