Hospitality Ventures Adds 42nd Hotel to Portfolio, Enters Multiple Strategic Partnerships
- Jun 10, 2014
Spring is proving a fruitful season for Hospitality Ventures Management Group. Through a handful of transactions, the hotel ownership and management group has enhanced its portfolio with the addition of three hotels, and it’s laid the groundwork for future growth with two new strategic partnerships.
Hyatt Atlanta Perimeter at Villa Christina is now under HVMG’s domain. The company manages the 177-room full-service hotel, which just opened its doors in May in Atlanta’s Central Perimeter market, as well as the adjoining Villa Christina conference and special event venue. The 220-room DoubleTree by Hilton Hotel Deerfield Beach in Boca Raton, Fla., is also now part of the group. In addition to the overseeing of operations, HVMG’s duties will include the spearheading of a multi-million-dollar renovation of the property. HVMG has also brought the in-progress 230 Peachtree Street Hotel Indigo in downtown Atlanta under its wing. The 200-room hotel is being developed on eight floors of the 415,000-square-foot 230 Peachtree Center office tower and will make its debut in 2015.
Times are good in the hotel market. “Business travel is returning at a good clip and group business is also on the upswing,” Mary Beth Cutshall, vice president, Acquisitions and Business Development, with HVMG, told Commercial Property Executive. “From a leisure standpoint, disposable income and the improvement in personal net-worth, as well as the declining unemployment rates are all contributing to increased demand.”
And with HVMG’s two new alliances, the company is well-positioned to continue to capitalize on the increasing strength of the hospitality market. HVMG has landed the role of preferred hotel management company for Gabriel Holdings, a new private equity group that has recently come on the scene to acquire and develop hotel properties. Gabriel Holdings plans to shell out $100 million on value-add investments over the next 12 months, with a focus on upper midscale through upper upscale properties located in both secondary and tertiary markets.
“We look for the value-add play where we can maximize opportunity for revenue enhancements and efficient expense management,” Cutshall said.
And with Serendipity Labs, HVMG has formed a joint venture to open and operate commercial and hotel-based work spaces in leading cities across the country. The partnership endeavors to be a force in extending the multi-billion-dollar co-working sector into the hotel sector and the team will kick off its effort with a new project in downtown Chicago this fall.
The signs are positive for HVMG and the hotel market in general. “All of the fundamentals are strong and we are optimistic about the next few years,” added Cutshall.