to Acquire and Operate Two Hotels; Omni Colonnade
and The Savoy
|PHILADELPHIA & PARK CITY, Utah - Jan. 21, 2002-- The Arden Group,
a major real estate investment company headquartered in Philadelphia, and
Gemstone Resorts, a resort and unique hotel management company, today announced
the formation of a joint venture to acquire, asset manage and operate four-
and five-star hotels and resorts in the U.S., Hawaii, Mexico and the Caribbean.
In its first transaction, the joint venture has taken on two properties:
The Savoy Hotel in the heart of Miami's South Beach District and the Omni
Colonnade in nearby Coral Gables, Fla.
"With a slowing economy, there are opportunities to acquire hotels, add needed capital where appropriate, and reposition them," said Craig A. Spencer, principal and founder of The Arden Group. "We will focus on upscale and luxury hotels and resorts where we believe a combination of capital, strategic asset management and sound hotel operations can generate both short- and long-term returns."
"Highly focused oversight of hotel and resort operations is especially critical in today's difficult economic climate," said Jeff McIntyre, principal of Gemstone. "Our goal, as with all of our relationships with ownership groups and individuals, is to maximize returns on hospitality investment."
Gemstone has seen a significant increase in sophisticated owners like
The Arden Group turning to more experienced and specialized management
companies to maximize the returns on their hotel investments, according
to Mark van Hartesvelt, principal of Gemstone. "This trend has accelerated
since the tragic events of September 11, and we expect it to continue,"
The joint venture is actively seeking to acquire properties, with a
goal of acquiring approximately $250 million over the next 18 months. "We
have a highly flexible approach and can be extremely creative in structuring
transactions," Spencer said. "While there has not been a glut of hotel
real estate on the market, we are beginning to see the first signs of an
increase in properties that are more attractively priced coming up for
sale. We want to be at the leading edge of the acquisitions front and have
the funds available
The initial two properties in the joint venture are:
With more than 15,000 square feet of meeting space, anchored by the unique, historical, 6,000-square-foot Rotunda, the hotel serves groups ranging from 10 to 500 guests. In addition, the Omni Colonnade offers a fully equipped exercise facility overlooking the pool area, a 24-hour business center and a multilingual concierge staff. The property also offers the popular Omni Kids Program for traveling families.
"Gemstone's role as asset manager for this property is to help provide the Omni team with the tools and support it needs to help refine and expand targeted marketing efforts, reduce costs and continue to build on the hotel's already excellent reputation for service," said McIntyre.
The Savoy hotel is located directly on the beach in the heart of the South Beach entertainment district. The first-class, 74-room property has just completed the first phase of a major renovation to its classic Art Deco exterior and offers a variety of completely refurbished one- and two-bedroom and oversized executive suites.
Gemstone will oversee the property and immediately initiate the addition
of two meeting rooms that will overlook the ocean and are designed for
groups of five to 40 guests who seek personalized service in an unmatched
setting. The hotel also features a beautiful secluded garden courtyard
between two highly landscaped swimming pools. The Savoy provides ample
guest parking, a
"Our goal will be to create a world-class luxury hotel by adding the high-touch personal service standards that complement its unmatched setting," said McIntyre. "We have a highly successful track record in beach resorts, boutique-style hotels and the South Beach district and look forward to creating a truly unique hotel experience for our guests."
The Arden Group, Inc., and related affiliates specialize in the acquisition,
development, leasing and management of real estate assets. Real estate
property types include hotels and resorts, office and specialized land
development. Properties include over 3.5 million square feet of office
space, six hotels and more than 3,000 acres of land, including a 1,500-acre
luxury resort development in Jackson, Wyoming. Most recently, The Arden
Group completed the $100 million conversion of the former Girard Bank buildings
Headquartered in Park City, Utah, Gemstone is a full-service operating
and asset management company that specializes in unique hotels and complex
resorts that include a variety of components such as hotels, restaurants,
retail, resort amenities such as beach, golf or skiing, time-share and
other hospitality-related activities. The company is engaged in resort
The Arden Group
|Also See||Philadelphia Hospitality Partners, L.P Appoints Ritz-Carlton as Management Company for the 330 Room Hotel in the Former Mellon Bank Rotunda and Tower / Feb 1999|
|Owners of Roney Palace Beach Resort & Spa Appoint Gemstone Resorts International as Manager / Oct 2000|