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George M. Kaufman, Founder of Guest Quarters Hotels, 
Dies at 69
By Tom Shean, The Virginian-Pilot, Norfolk, Va.
Knight Ridder/Tribune Business News 

Nov. 2--NORFOLK, Va.--George M. Kaufman, a veteran real estate developer who pioneered the concept of extended-stay suite hotels, died Thursday. 

The Norfolk native, who became widely known for his philanthropy and for collecting 18th and early 19th century American furniture, was 69. 

After working in banking and investments in the late 1950s, Kaufman developed several apartment communities in Virginia and North Carolina. Drawing on his experience in real estate finance, he decided that he could generate greater returns by developing apartment buildings in some major cities into hotels for extended stay. 

"In the last 30 years, the all-suite hotel became the fastest growing sector of the lodging industry, and this guy invented it," said David Beatty, a Norfolk mortgage banker who worked with Kaufman for 15 years. 

The first of Kaufman's Guest Quarters hotels opened in Atlanta in 1972, and his company developed several others in such cities as Washington, Charlotte, Houston and Tampa. 

For years, Kaufman had been afraid to fly, so he and business associates would travel to meetings in Raleigh, Winston-Salem, Greensboro and Atlanta by limousine, said Beatty, who still specializes in financing hotels. 

"On those trips, we would talk about world politics, local politics, art collecting and interest rates," Beatty said, "and we'd be drinking Chivas Regal scotch and eating Godiva chocolates." 

"He was a private guy, but he had a personal magnetism that made you want to work for him." 

As giant lodging chains developed their own extended-stay hotels, the risks and competitive pressures mounted. In 1987, Kaufman sold the management rights and Guest Quarters name to a Boston concern that owned and managed hotels. 

Squeezed by tax-law changes and weakening business conditions, some hotels that Kaufman continued to own encountered severe cash-flow problems. He spent part of the late 1980s and early '90s battling with lenders over the ownership of some of these. However, Kaufman remained upbeat and active in real estate investing, even after having a heart transplant six years ago. 

"He was entrepreneurial and was always looking for fresh ideas," said John O. "Dubby" Wynne, president and chief executive officer of Landmark Communications Inc. 

Kaufman served for several years on the board of Landmark, the Norfolk-based parent of The Virginian-Pilot newspaper, other publications, The Weather Channel and television stations. He was especially interested in the success of The Weather Channel, even when the Atlanta-based cable TV channel had organizational problems, Wynne said. 

Kaufman, he said, "was incredibly fun to be with and especially generous" to friends and to charitable endeavors in need of funds. 

As they assembled world-class collections of 17th century Dutch paintings and American furniture, Kaufman and his wife, Linda, shared these with several museums, including the Chrysler Museum of Art in Norfolk. 

"He brought a passion to collecting," said William J. Hennessey, director of the Chrysler. "To talk to George Kaufman about Dutch painting and American furniture was thrilling. He got the best, and he communicated that excitement to others." 

In addition to lending pieces from their collections to the Chrysler, Kaufman and his wife provided financial assistance and helped the museum arrange loans of art works from other collections, Hennessey said. 

Kaufman's philanthropy extended to several other institutions, including the University of Virginia, Old Dominion University, Ohef Sholom Temple in Norfolk and the Cleveland Clinic, site of the Kaufman Center for Heart Failure. 

Despite having health problems in recent years, Kaufman continued to demonstrate a flair for business before he collapsed at work Wednesday, Beatty said. 

"He was involved to the end in something he loved," Beatty said. "I wish I could convey how much fun it was working with George Kaufman." 

-----To see more of the The Virginian-Pilot, or to subscribe to the newspaper, go to http://www.pilotonline.com 

(c) 2001, The Virginian-Pilot, Norfolk, Va. Distributed by Knight Ridder/Tribune Business News. 


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