Daily Grill Owner to Buy Out Partner

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Los Angeles-based Grill Concepts Inc., owner of the upscale casual Daily Grill chain, said Tuesday that it plans to buy out, for $2.77 million, the financial interests of partner Hotel Restaurant Properties Inc. in a majority of the hotel-based restaurants the companies operate in several cities.


In 1998, Grill Concepts entered into an agreement with Hotel Restaurant Properties for assistance in finding suitable hotel-based locations and negotiating agreements for those properties. Hotel Restaurant Properties received a portion of the proceeds generated by the restaurants.


Under the new agreement, Grill Concepts takes over the Daily Grills at hotels in San Francisco, Houston, Washington D.C., Portland, Ore. Hotel Restaurant Properties retains management rights at the Burbank and Long Beach Hilton locations and a hotel in Skokie, Ill. Grill Concepts also will have full ownership of future hotel-based Daily Grills, including restaurants set to open next year in Seattle and Memphis.


Grill Concepts last month reported that second-quarter profit soared on strong total and same-store sales in the period, with net income up $1.5 million compared to $113,000 in the same period last year.

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