CHICAGO & NEW YORK—Hotel management and development company First Hospitality and The Georgetown Company, a developer and owner of commercial, retail, and mixed-use properties nationwide, announced a new platform targeting $1 billion of investment in upscale and luxury hospitality properties nationwide.
“We know that hospitality assets will inevitably see a strong rebound in the years following the pandemic, ultimately creating significant value for investors,” says Adam Flatto, CEO of The Georgetown Company. “First Hospitality has a stellar reputation and we are honored to partner with them as we launch this venture.”
While the industry has begun to recover from the pandemic, Georgetown and First Hospitality believe there is long-term growth potential for the industry moving into 2022 and beyond. In partnership with First Hospitality, Georgetown and its capital partners will direct $1 billion towards hotel investments and properties in areas throughout the United States.
The Georgetown Company will also take an ownership interest in First Hospitality alongside Stephen L. Schwartz and the Schwartz family. Schwartz, First Hospitality’s founder, will continue as chairman, and his family will maintain strategic control of the 35-year-old company. First Hospitality’s existing leadership team, headed by Duncan, will continue to run the day-to-day operations of the company.
“We’re honored to formalize our partnership with The Georgetown Company,” says David Duncan, president and CEO of First Hospitality. “We believe strongly in the long-term outlook for high-quality lodging assets, and Georgetown is an agile and highly successful investor who shares our values and strategic investment goals.”
The new venture will benefit from both Georgetown’s experience and relationships to source and identify hospitality properties along with First Hospitality’s hotel management expertise. By aligning ownership and operations into a single investment vehicle, the new partnership between Georgetown and First Hospitality is positioned to maximize value in every property and transaction over the long term.
The new platform is led by Duncan and Michael Fishbin, who joined Georgetown as managing director and head of hospitality in February 2020 to grow the company’s hotel development and acquisition portfolio prior to the onset of the pandemic. With 35 years in the industry, including serving as EY’s Global and Americas hospitality leader for more than 12 years, Fishbin is a leader in hospitality who has served as an advisor on more than $30 billion of hospitality transactions over the course of his career.
“We have been planning on growing our hospitality portfolio even before COVID because there is significant long-term value in these assets,” said Fishbin. “The opportunity now is even greater than before, especially by combining our own capabilities with the hotel management expertise of First Hospitality.”
“We have maintained a steadfast focus on the long-term growth and success of First Hospitality for over three decades,” says Stephen L. Schwartz, First Hospitality chairman. “Our family is excited to partner with The Georgetown Company to continue acquiring exciting assets and grow our management portfolio nationwide.”
First Hospitality will also continue to expand its third-party management business.