NEW YORK – After literally years of rumors that New England-based hotel chain Chalet Susse International was on the block, Olympus Real Estate Advisors’ Hospitality Group has pulled the trigger and acquired the chain’s portfolio of 34 economy hotels located in the northeastern United States.
Olympus has purchased the assets of Wilton, NH-based Chalet Susse, which includes ownership of 27 hotels flying the Susse Chalet Inns, Grand Chalet Inns and Susse Savers flags. In addition, Olympus acquires franchise and or management agreements for seven other Chalet Susse branded properties located in New Hampshire. Financial terms of the transaction have not yet been released.
Chalet Susse is currently the largest company-owned, limited-service lodging chain in New England. Founded by Fred Roedel in 1967, the chain consists of roughly 4,000 hotel rooms with each property containing between 105 and 158 rooms.
"The Susse Chalet acquisition is an outstanding addition to Olympus’ growing hospitality investment portfolio," said Olympus Real Estate Corp.’s President and CEO David Deniger. "The properties are uniquely located in strategic, high-barrier-to-entry markets, which are currently enjoying the strongest revenue growth across the country."
While no figures were released by either company, Deniger strongly hinted that Olympus would invest in the chain and build on the brand’s loyal regional following.
"We believe strongly in the opportunity to create value in the portfolio," Deniger said. "By capitalizing on Chalet Susse’s past success through the implementation of a thorough renovation of the properties."
Olympus has said that the properties will be managed by Paramount Hotel Group, a recently established management firm co-founded by former Prime Hospitality CEO David Simon. Prime owns Amerisuites and Wellsley Inns, also economy hotel chains. Simon holds the CEO position at Paramount.
"We are very pleased to associate with and invest alongside a quality company such as Olympus Real Estate Corporation," Simon said. "The combination of Olympus’ Real Estate savvy and our management expertise will create a winning team for this investment."
Several major international hotel chains have reportedly investigated acquiring Chalet Susse in recent years with Motel 6 and Prime Hospitality mentioned the most frequently. Several hotel executives told Hotel
Interactive off the record that they found the chain attractive but that in the past, the New Hampshire company’s asking price was too high.
Olympus Hospitality Group, headquartered in Scottsdale, AZ, was recently formed by Olympus Real Estate Corporation to aggressively pursue hotel investments, management contracts, joint ventures and franchise opportunities, primarily under its Rockresorts, Unique Hotels, Park Plaza International and Park Inn International hotel brands. Olympus Real Estate Corp., with offices in Dallas and New York, invests in real estate equities, mortgages and securities in major markets throughout the U.S. Olympus was formed in May 1994 by Hicks, Muse, Tate & Furst Inc. and David B. Deniger. Since its formation, Olympus has completed more than $3 billion in real estate investments including numerous hotels and commercial, residential and golf-related projects throughout the U.S. and abroad.
