News for the Hospitality Executive
Barcelona Hotel Group and Dow Hotel Co. Plan to Acquire
$450 million in Hotel Assets Over the Next 12-18 Months
PHOENIX, Ariz./SEATTLE, Wash., April 6, 2010--Barcelona Hotel Group, a financial investment group, and Dow Hotel Company, LLC (DHC), a hotel ownership, investment and management company, today announced that they have signed a letter of intent to acquire and operate hotels. Under terms of the agreement, Dow will become a Strategic Alliance Member (SAM) and co-invest with affiliates of Barcelona to acquire first-class, full-service hotels over the next 12-18 months.
Barcelona REIT One (BR-1), a private real estate investment trust, or an affiliate of BR-1, will acquire and own the properties. The closed-end fund, managed by Barcelona, expects to acquire up to $450 million in hotel assets. BR-1 is the first in a planned series of Barcelona-administered hotel investment funds. As a SAM, Dow will invest in BR-1, along with institutional investors. Dow will be responsible for sourcing acquisition candidates and will operate as a third-party manager for all properties it presents and that are acquired. Also as part of the agreement, Murray Dow, president, Dow Hotel Company, has been named to the Board of Directors of Barcelona Hotel Group.
Acquisition candidates will be properties that can benefit from Dow’s turn-around and repositioning expertise. Target properties will be capable of operating under the leading, premium brands in the mid-market through upper upscale segments. Locations will be primary and secondary U.S. and Canadian markets.
“We believe that the next several years will create exceptional opportunities to acquire hotels, reposition them and take advantage of an economic upswing,” said Richard Harkin, president of Barcelona Hotel Group. “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.”
“We have a long history of co-investing with both public and private investment groups,” said Murray Dow, president, The Dow Hotel Company. “There still is substantial turmoil in the credit markets, although it is beginning to sort itself out. We believe this will accelerate the number of properties coming to market at more attractive pricing.”
The Dow Hotel Company, headquartered in Seattle, is a national hotel owner/investor and operator of hotels. The company’s portfolio of owned and managed properties is comprised of institutional grade hotels, under such brands as Hilton, Marriott, Sheraton, Crowne Plaza, and Radisson. Founded in 1997, the company aggressively seeks to acquire, co-invest with joint venture partners and/or manage mid- to large-size, institutional-grade, full-service hotels, especially those that have extensive food and beverage capabilities.
Barcelona Hotel Group was organized in 2009 by a group of former hotel industry executives in the finance and corporate arenas. The company is headquartered in Scottsdale, Arizona.
Barcelona Hotel Group
|Also See:||Michael Pitstick and Steven Falciani Promoted to Regional Vice President of Operations for Dow Hotel Company / December 2008|