Real Hospitality Has a Growth Spurt
- Oct 10, 2016
Ocean City, Md.—Real Hospitality Group is planning to close 2016 with a bang. The hotel management services company just announced that it will expand its portfolio with eight brand new properties totaling more than 1,000 guestrooms in the last quarter of the year.
“The investment we made in the early stages of development with our owners on these projects are continuing our commitment to delivering top quality results for our owner groups,” Ben Seidel, president & CEO of Real Hospitality Group, said in a prepared statement.
It’s clear that RHG is in a New York state of mind; half of the new assets are located in the Big Apple. One of the hotels, Four Points by Sheraton Manhattan Midtown West, will boast a location within the $20 billion Hudson Yards development. The 150-key property will make its debut in November. Another Manhattan hotel, the 150-key Hyatt House Manhattan Chelsea, will hit the market in December, bringing the very first Hyatt House brand to New York City. RHG will facilitate another first in the city with the November opening of Hotel RL, New York, Brooklyn, marking the introduction of the Hotel RL by Red Lion Hotels flag to the market. The lodging destination, featuring 70 guestrooms, will open its doors in Brooklyn’s Bed-Stuy neighborhood. Additionally, the company will enhance its already substantial presence in Queens with the November launch of the 185-key aloft Long Island City.
While RHG is quite keen on New York City, the company hardly has tunnel vision. RHG will also welcome visitors to the 120-key Fairfield Inn North Bergen in New Jersey by the end of the year. Farther down the Eastern Seaboard, RHG brought two new hotels to the Miami market—two in one, actually—at the end of September. Creating a dual-branded property, Hilton Garden Inn and Homewood Suites – Miami Dolphin Mall raised their flags above an 11-story tower, offering 132 and 100 guestrooms, respectively. And in RHG’s home base of Ocean City, Md., the Fairfield Inn brand will make its way to the resort town for the first time, adding 125 keys to the market in December.
“Our Company culture continues to create value for our owners, and with strong brand relationships, we are able to execute the pre-opening critical actions and implement our systems for a long term asset value increase,” added Seidel.
In addition to New York, New Jersey, Maryland and Miami, RHG’s footprint extends to the Boston and Philadelphia areas, as well as Delaware, North Carolina, Virginia and West Virginia. But the company has no plans of stopping there.
The recent and impending launch of the eight new properties, Seidel said, “sets the tone for the next phase of growth in 2017, with new channels of business relationships and expansion into new markets that continue targeting long-range growth and asset management.”
There are any number of locations that would fit the bill for RHG, as, on the whole, the U.S. hotel market continues to thrive. According to a report by commercial real estate services firm CBRE’s advisory group, CBRE Hotels, national hotel demand performance was generally positive in the second quarter of 2016, with 51 of 60 monitored markets experiencing growth. Additionally, occupancy increased year-over-year to 69.4 percent, representing the highest second-quarter occupancy rate CBRE Hotels has on record.