Affiliates of Northview Hotel Group ("Northview"), in partnership with a fund (the "Partnership") managed by an affiliate of Apollo Global Management, LLC (NYSE:APO) have announced the acquisition of Hotel Madeline Telluride (the "Property"), Telluride's premier hotel and residences. Terms of the transaction have not been disclosed. A Virtuoso-preferred destination and member of The Leading Hotels of The World, Hotel Madeline Telluride is a four-diamond rated, ski-in ski-out property in the heart of the Town of Mountain Village in Telluride, featuring 89 guest rooms, 11 suites, 60 residences, 10 employee condominium residences, two restaurants, 4,000 square feet of meeting space, 15,705 square feet of retail space, and multiple world-class amenities including The Spa at Hotel Madeline.
The acquisition of Hotel Madeline Telluride marks the Partnership's fourth joint venture in the past 18 months. Northview will operate the hotel on behalf of the Partnership, as well as oversee multiple, proposed capital improvements projects and the sale of the residences. Northview was pre-approved by the Mountain Village Town Council to manage the Property in July of this year.
"I am very supportive of this operator and appreciate that the Partnership will invest in improvements and additional amenities, as well as help grow our bed base by releasing the residences for sale," said Mountain Village Mayor Dan Jansen during the Town Council meeting in July. "Hotel Madeline Telluride is known as one of Telluride's premier properties, and I am hopeful that Northview will continue to maximize its potential. I am looking forward to seeing more detail on the improvement plans and working with Town Council to make it happen."
Northview specializes in the management of full-service, upscale resort properties in seasonal markets, including Brasada Ranch in Bend, Oregon, Sanderling Resort in the Outer Banks, North Carolina, Beach House on Hilton Head Island, South Carolina, and Hawks Cay Resort in The Florida Keys (a Northview property from 2007-2013). Northview leverages its proprietary set of management tools, systems, and unique processes to maximize peak season revenue, build shoulder season demand, and minimize off-season losses, while maintaining best-in-class guest and associate satisfaction.
"Hotel Madeline Telluride is one of the finest hotels in Colorado ski-county, and, we are delighted that it will join our growing collection of hotels and resorts," said Mark Mance, Northview's founding partner. "The on-property team has done a tremendous job re-establishing the hotel's premier position in Telluride over the past year and delivering memorable experiences to its guests. We look forward to building on this success."
The Partnership's goal is to establish the hotel as the premier property in Telluride, and one of the top mountain properties in the U.S. To that end, the Partnership plans to invest $7-10mm in the short term, to (i) upgrade the Property common areas, (ii) re-concept the Property and residence amenities, including The Spa and pool area, and (iii) complete significant improvements to the residences. Limited disruption to the Hotel operation is expected while this work is carried out. The upgraded condominium residences will be released for sale as early as the 2014/15 winter season.
"We have a lot of work to do to fully immerse ourselves in the Town of Telluride and Mountain Village, on-board the Hotel team, build the right strategies and success measures for this tremendous property, and launch the residences for sale," said Brent McLean, Northview's Senior Vice President. "We will seek considerable input from community members and the existing Hotel team to meet our primary goal of ensuring the Property is a considerable source of pride for everyone involved."
About Northview Hotel Group
Northview Hotel Group, led by Mark Mance, Simon Hallgarten, David Zeuske, and Matt Trevenen, was formed to make opportunistic hotel investments and to provide hotel management, asset management, and construction management services for owners and co-investors. Since forming in 2004, Northview has acquired over $800 million of lodging and real estate assets, and overseen renovation projects in excess of $145 million. Northview's current portfolio includes fifteen unique properties ranging from small independent resorts to large urban branded hotels. The acquisition of Hotel Madeline marks Northview's eighth acquisition in the last 24 months. For more information about Northview, please visit www.nvhg.com
About Apollo Global Management
Apollo is a leading global alternative investment manager with offices in New York, Los Angeles, Houston, Toronto, London, Frankfurt, Luxembourg, Singapore, Mumbai and Hong Kong. Apollo had assets under management of approximately $168 billion as of June 30, 2014 in private equity, credit and real estate funds invested across a core group of nine industries where Apollo has considerable knowledge and resources. For more information about Apollo, please visit www.agm.com
About Hotel Madeline Telluride
Hotel Madeline Telluride is a refined boutique address located at the heart of Telluride, Colorado's ski mountain. The hotel has 96 rooms, 11 suites and 23 condominium residences of sophisticated design, attentive service and the amenities to fully enjoy the invigorating atmosphere of the Rockies. Restaurant REV is Telluride's definitive, four diamond-rated dining experience serving farm-to-table mountain chic cuisine that features local and regional ingredients. SMAK is a relaxed Rocky Mountain chic tavern serving an imaginative small- and large-plate menu. The Spa offers transformational treatments focused on healing and rejuvenation. Hotel Madeline Telluride is also well set for intimate weddings and small-scale meetings, with 4,000 square feet of function space surrounded by majestic mountain peaks. For more information about Hotel Madeline Telluride, please visit www.hotelmadelinetelluride.com