RALEIGH, N.C.— Concord Hospitality Enterprises announced that it has stepped up its growth strategy for 2013 to include opportunistic acquisitions/divestments and third-party management in addition to continuing its development program.
In 2012, the company committed more than $500 million to new development, and opened two hotels, while breaking ground on an additional six. For 2013, Concord expects to triple that performance by opening six hotels and breaking ground on ten. Looking ahead to 2014, Concord expects to open 12 newly developed hotels.
“We have a very aggressive pipeline of 17 LEED-designed hotels, that include two Cambria Suites projects in New York, and one in Washington DC,” said Mark Laport, president and CEO. “We also are very active in numerous secondary U.S. markets and Canada and will expand our presence in Cleveland and Pittsburgh.”
Openings in the near future include a 153-room Courtyard by Marriott in Cleveland, Ohio, a 136-room Hyatt House in Pittsburgh, Pa., and a 137-room Hyatt House near Concord’s Raleigh, N.C. headquarters.
Laport reinforced Concord’s commitment to environmentally-responsible development and by the end of 2013, Concord estimates that 25 percent of its 4,626 owned hotel rooms will be LEED certified. Concord’s new properties consume 20 percent less energy than local building codes require and the company also participates in Clean the World, a global initiative that recycles personal hygiene items that are distributed around the world where hygiene-related diseases are an issue.
According to Laport, Concord also stepped up its activity in the acquisitions arena in 2012 with two transactions including the third quarter purchase of the Renaissance in Rutherford, NJ, a property it developed in 2000 and has managed since opening.
“We have not been an active acquirer but are beginning to see a number of transactions that match up well with our business model,” said Laport. “We will acquire opportunistically and simultaneously seek to monetize select assets in our portfolio to reinvest in new development projects and acquisitions. Whenever possible, we will seek to retain management of the divested assets.”
Last year, Concord grew its base of third-party management contracts by five hotels, a trend it expects to continue in 2013 with the addition of at least another five properties.
“We retained management of properties that we sold, and we added contracts on behalf of relatively new ownership groups that are expanding their holdings,” Laport said. “We already have several new engagements teed up for 2013, pending closing, which will bring our operations westward to new markets like Las Vegas and increase our number of hotels in markets such as Phoenix. We also are working with a number of sophisticated institutional investors who plan on additional acquisitions in 2013.”