The operating landscape continues to be reshaped by the wave of acquisitions taking place in recent months and the net result is a number of larger third-party management companies with more scale and additional muscle.
Benchmark Pyramid and Provenance Hotels last week announced the signing of a definitive agreement under which Benchmark Pyramid will acquire Portland, OR-based Provenance, adding 12 hotels to Benchmark Pyramid’s portfolio of more than 240 properties across the U.S., Europe and the Caribbean. Terms of the transaction were not disclosed.
The newly acquired properties include two downtown Seattle, Washington hotels—Hotel Max and Hotel Theodore; the boutique Old No. 77 Hotel & Chandlery, situated blocks from New Orleans, Louisiana’s French Quarter; downtown Nashville, Tennessee’s newly renovated Hotel Preston; the museum-worthy collection of glass art at Hotel Murano in the South Sound; and the midwestern charm and modern design of Fort Wayne, Indiana’s The Bradley, according to the company. Also included are six downtown Portland, Oregon hotels: the Hollywood golden age-style Hotel Deluxe in the Goose Hollow neighborhood, the award-winning Woodlark, Sentinel in the West End, Hotel Lucia—which is listed on the National Register of Historic Places—the iconic Heathman Hotel, and the art-filled rooms of Dossier.
Following the close of the transaction, which is expected in the second quarter of 2022, Provenance will merge its interests into Benchmark Pyramid.
Within 24 hours of the aforementioned deal, Remington Hotels announced that it had acquired Chesapeake Hospitality. With 65 years of experience helping hotel owners and real estate investors in the eastern United States discover their properties’ full potential, Chesapeake joined Remington with a complementary vision and mission.
The acquisition expands Remington’s footprint to Midwestern markets, including Pittsburgh, Milwaukee, Detroit, and St. Louis. Additionally, Remington will expand its portfolio of IHG & Independent properties in several locations as well as add its first Wyndham property. Though the two companies will be operating under the Remington Hotels brand, all former Chesapeake hotels will remain under the same management and can expect the same exceptional service, according to the company.
With the completion of this transaction, Remington Hotels will have a portfolio of 121 managed properties under contract in 28 states and Washington DC. As a result of the acquisition, Remington’s mix of non-affiliated REIT hotels will increase from approximately 20% to approximately 40%. The combined company will be headquartered in Dallas and oversee all day-to-day operations of the entire national portfolio of properties.
Meanwhile, earlier this year, TPG Hotels, Resorts and Marinas (TPG), acquired Marshall Hotels and Resorts, a hotel management and services company operating three and four-star branded hotels and resorts. The combined company is headquartered in Salisbury, MD, and oversees all day-to-day operations of the entire national portfolio of properties.
With the completion of the transaction, TPG boasts a portfolio of more than 130 operated properties comprising nearly 20,000 rooms in 26 states. The management company is focused on expanding the third-party platform and increasing the value of the assets for our owners.
Just prior to that deal, following its acquisition by Summit Hotel Properties, NewcrestImage announced it was transferring its existing hotel management agreement rights for some 27 properties to Aimbridge Hospitality. NewcrestImage acquired minority ownership in Aimbridge Hospitality as part of the deal.