ATLANTA—Hotel management and development company, Hotel Equities (HE), has created a strategic alliance with private equity firm, Virtua Partners. Virtua Partners, a global private equity firm with a specialty in commercial real estate, is making a series of investments totaling more than $500 million into HE’s hospitality platform. The new capital will be used to fuel growth through hotel management company acquisitions, organic growth, and strategic investments into various hospitality assets.
Hotel Equities provides management and development services to 115 properties across 25 states and two Canadian provinces with a total of $2 billion in assets under management. HE manages premium hotel brands, primarily with Marriott and Hilton and the asset classes range from suburban, urban upscale boutique, as well as resort-style destination properties.
“Hotel Equities is an industry leader in hospitality management and development. HE has a 29-year award-winning track record for employee recruitment, training and retention. This culture of service permeates throughout the entire company. Virtua Partners is excited to invest in such a dynamic organization,” says Quinn Palomino, principal of Virtua Partners.
“This capital infusion allows us to expand our platform as we look to grow Hotel Equities through acquisitions and organic growth. Our mission is to provide outstanding service to our key stakeholders and deliver strong returns to our owners. We are delighted to have Virtua Partners invest in our company, as they share our values and culture,” says Fred Cerrone, founder and chairman of Hotel Equities.
Virtua Partners holds investments in hotels and other hospitality properties throughout the country. Virtua Partners has targeted a series of investments totaling over $500 million, some of which will be deployed through hospitality investments and Opportunity Zones, as well as acquisitions and new development.
Cameron Lamming has been promoted from chief development officer to chief operating officer and president of RAR Hospitality. Before he joined RAR, Lamming worked at Brixton Capital, where he was responsible for the acquisitions group.
For more notable comings and goings that took place this week, click here.
21c Museum Hotels appointed Sarah Robbins to the position of chief operating officer. A founding partner of 21c Museum Hotels, Robbins has been with 21c Museum Hotels since 2005 having previously served as chief hospitality officer. In her new role, she will be responsible for overseeing all hotel operations, in addition to food and beverage operations and human resources.
More of this week’s notable comings and goings here.
Hilton has announced that Danny Hughes will be the company’s executive vice president and president, Americas, effective September 4. Hughes will oversee Hilton’s interests across North, Central, and South America with a focus on enhancing the managed portfolio. Hughes previously held the position of senior vice president and commercial director of the Americas.
Here’s a look at other notable comings and goings that took place this week.
For the past four quarters, demand grew faster than supply for extended-stay hotels in the United States. Continuing that trend, extended-stay occupancy reached one of its highest second-quarter levels in 17 years, according to The Highland Group’s 2018 Mid-Year Extended-Stay Lodging Market Report. More than 30,000 new extended-stay rooms opened over the past year but demand growth was strong enough to lift average occupancy and continue ADR growth. Extended-stay hotel RevPAR increased 4.4 percent in the second quarter of 2018 compared to the same period in 2017.
“Extended-stay hotel occupancy above its long-term average and the strongest demand growth trend since the post-recession recovery provide a solid foundation to absorb the record number of new rooms under construction,” says Mark Skinner, partner at The Highland Group.
PHOENIX—On August 15, 2018, InnSuites Hospitality Trust, through InnSuites Hotels, Inc., entered into an agreement to sell its wholly-owned subsidiary, IBC Hotels to a wholly-owned subsidiary of OBASA Capital Investments, Inc., an independent third-party purchaser. The sale was completed, with funds being received by IHT, on August 16, 2018. The sale price and terms were not disclosed.
IBC provides proprietary software, exclusive marketing services, and distribution to a network of approximately 2,000 unrelated hospitality properties under the names InnDependent Boutique Collection, IBC Hospitality Technologies, and IVHTravel.com. Additionally, IBC provides software and solutions to a variety of branded hotels through IBC’s patent-pending loyalty program.