AHIP Names Aimbridge as Manager of Hotel Portfolio
- Apr 05, 2018
American Hotel Income Properties (AHIP) REIT has selected Aimbridge Hospitality to assume hotel management responsibilities for all of the 115 hotels in its portfolio, taking over for ONE Lodging Management.
ONE Lodging had been the exclusive manager since AHIP’s IPO five years ago. After a short transition period with its leadership team, Aimbridge is expected to take control sometime before the end of the month.
“When they told me that Ambridge was the one that was selected, we the board were very happy and pleased because they are the largest hotel management company and in this business, size matters,” Ian McAuley, AHIP’s president, told Commercial Property Executive. “The ability of Ambridge to go to suppliers and vendors in the hotel business and say, ‘we are this size,’ we can now turn to our owners and tell them we are doing a better job at purchasing than anyone else.”
He added that as AHIP’s portfolio has increased, its need to partner with a leading external hotel management company that brings a first-class experience and deep bench strength across the U.S., was vital.
A new strategy
The original IPO consisted of 33 hotels that primarily focused on providing crew accommodations to the top-tier railroad companies throughout the U.S. That strategy changed and the company started looking for select-service hotels.
AHIP has doubled the size of its company in the last 14 months, and is currently in the middle of integration for a lot of hotels in its portfolio.
“We like the secondary markets because what happens in the suburbs happens whether there is an upturn or downturn,” McAuley said. “The select-service hotels we like to own are high-margin hotels, very simple operations and a lot of group business. There is a fantastic opportunity to grow in this space.”
Today, AHIP hotels operate under brands affiliated with Marriott, Hilton, IHG, Wyndham and Choice Hotels through license agreements.
Last June, AHIP bolstered its guestroom count by 23 percent with the acquisition of a 2,187-key group of 18 premium branded Marriott and Hilton hotels for approximately $407.4 million.
Earlier this year, Aimbridge Hospitality was named manager of Marriott International Inc.’s new dual-branded property which includes Fairfield Inn & Suites Boulder Broomfield/Interlocken, a 90-key hotel and the 122-key Residence Inn Boulder Broomfield/Interlocken in Broomfield, Colo.