Barcelona, Dow Enter $450M Joint Venture
- Apr 06, 2010
April 6, 2010
By Allison Landa, News Editor
Financial investment firm Barcelona Hotel Group and hotelier Dow Hotel Company have joined forces to acquire and operate hotels. Under the agreement, Dow will become a strategic alliance member and co-invest with affiliates of Barcelona to acquire hotels over the next 12 to 18 months. In addition, Dow president Murray Dow has been named to Barcelona’s board of directors.
The properties will be acquired and owned by Barcelona REIT One or an affiliate, with Dow managing the hotels as a third-party operator. The fund expects to acquire as much as $450 million in hotel assets.
Barcelona and Dow are targeting properties in need of turn-around and repositioning, with locations in primary and secondary U.S. and Canadian markets. Upscale hotels will be amongst those targets.
“We believe that the next several years will create exceptional opportunities to acquire hotels, reposition them and take advantage of an economic upswing,” Barcelona president Richard Harkin said when announcing the joint venture. “The industry is in the worst downturn in operating results in more than a generation. Hotel values have declined and hundreds of properties are in default. While there are other acquisition funds formed or forming, we believe that co-investing with a proven, well-regarded independent management company like Dow will more closely align the owner and operator and allow us to take greater advantage of the opportunities that lie ahead in the hotel industry.”
Barcelona Hotel Group was organized in 2009 by a group of former hotel industry leaders and is headquartered in Scottsdale, Az. Seattle-based Dow is a national hotel owner/investor and operator. The firm’s portfolio includes such brands as Hilton, Marriott, Sheraton, and Radisson.