Richfield Hospitality Plans Aggressive Expansion
- Feb 12, 2010
February 12, 2010
By Allison Landa, News Editor
Hotel management company Richfield Hospitality on Friday announced a major new growth strategy designed to aggressively expand its core third-party management business.
The Greenwood Village, Colo.-based firm also said that it along with parent company City Development Limited that it has more than sufficient capital to deploy, from structured finance to joint ventures and direct acquisitions.
“In a cash-starved environment like today, we can provide up to 25 percent sponsorship equity for acquisitions and joint ventures with either existing owners or with capital partners seeking acquisitions,” Richfield president Greg Mount said in a statement.
Mount added that third-party management will remain the company’s core business, and that it is increasing its management strength as well as its overall team.
Recent management changes include the naming of Bill Linehan in January as chief marketing officer. In November, Angela Landgraf joined the firm as senior vice president of development and management services. Mount himself was also named president of Richfield in November.
Richfield’s growth strategy includes an expanded role for its Sceptre Hospitality Resources division, which is its third-party GDS connectivity, e-marketing, and revenue management division. Mount said in the statement that Sceptre currently provides services to nearly 500 hotels, with an emphasis on third-party GDS connectivity, and that Richfield plans to build on its technology platform and staff in order to increase revenue.
Additionally, the company has formed two operating divisions to offer specialized expertise to a variety of hotels. The full-service division will concentrate on three- to five-star branded and boutique hotels, while a select-service division will concentrate on premium-branded properties.
Mount said in the statement that the company’s goal is to more than triple its size over the next five years from its current portfolio of 20 managed hotels, claiming that last year 95 percent of Richfield’s hotels posted higher year-over-year GOP gains.
Richfield and its affiliates provide services to approximately 500 hotels and resorts. According to Indeed.com, it has 1,000 employees and annual revenue of $34.3 million.