News for the Hospitality Executive
MODO Hotels Inks Agreement with Antares
Investment Partners for Development
ATLANTA (April 13, 2011) –– MODO Hotels LLC announced today it has entered into an agreement with Antares Investment Partners that will bring the new global lifestyle hotel brand to major cities throughout the U.S.
Under the agreement, the two companies are joining forces to establish funding for the development of 10 MODO hotel projects. The goal is to raise $400 million in debt and equity financing. Funds will be used to acquire strategic assets and build full-service and select-service lifestyle hotels primarily in major U.S. metropolitan markets. Among the targets are New York, Miami Beach, Washington D.C./Dulles Airport, New Orleans, Kansas City, Chicago and Atlanta.
Noble Management Group has been appointed as the preferred management company for all future development in America. Established in 1993, Noble today oversees more than 9,000 hotel and resort guestrooms throughout the U.S. Serving as general contractors are Antares Construction LLC and Crosslands Construction Company, a 1,000-person firm performing work in more than 40 states. The architect of record is Forum Studio, a full-service firm with headquarters in St. Louis, Mo.
“MODO has assembled a multi-disciplined team of superstars with experience across the board in hospitality and commercial real estate and strong relationships with lenders and other capital sources in the U.S. and key international markets,” says John Russell, CEO, MODO Hotels.
“We have quickly established a robust pipeline of vetted prospects,” Russell continues. “Given the enthusiastic reception from travelers, developers and investors, we are confident MODO will achieve rapid growth in the U.S.”
In recent focus groups, MODO tested positively with business travelers for its price point and unique music- and design-centric approach, according to Russell. He says the brand’s cost to construct takes many developers and investors by surprise. “Building costs are at least 20-30 percent less than those of comparable hotels, thanks to Antares’ experience and MODO’s design and construction innovations,” he notes.
“MODO is the right concept at the right time,” says Joe Beninati, a founding partner and principal with Antares. “The economy is starting to come back, and it is advantageous to invest in the hospitality sector during the early stages of recovery, while costs are still low. I’m honored to partner with John and his team. They are true professionals, with experience, vision and integrity.”
MODO will launch simultaneously on three continents. Working with Chennai, India-based Auromatrix Hotels (P)Ltd., the company will break ground this July in India on a budget version of MODO. During the next three years, five or more hotels will launch under this sister brand. They will be located in the country’s major cities of Chennai, Tuticorin, Kakinada, Vizag and Vellore. Additionally, in January, MODO announced it had struck a deal with BridgeRock Capital Management to develop a minimum of five full-service hotels over the next three years in Brazil’s fastest growing cities of Sao Paulo, Campinas, Curitiba, Vitoria and Manaus.
“MODO’s current design brings luxury and amenities to the upscale niche,” says Bob Morse, managing principal and chief operating officer, Noble Management Group. “That’s something that will resonate with travelers everywhere.
“The company has the right growth strategy too,” Morse adds. They’re hitting the top emerging markets around the world with a proven team. MODO is an outstanding vehicle. We’re excited to partner with people with the same degree of enthusiasm for the brand’s growth potential and markets.”
MODO is founded by a team of hotel veterans with a successful track record across the board, including hospitality design, law, marketing, franchising and operations. Antares brings to the table deep expertise in commercial real estate development, finance and construction.
The Greenwich, Connecticut-based company is a leading real estate development and private equity firm that made its mark by investing in well-situated, high-quality commercial properties, like Connecticut’s Delamar Hotel, Pickwick Plaza and One Hundred West Putnam, housing the headquarter offices of elite financial institutions, including banking, private equity and wealth management firms. These properties are known for their prime locations, successful redesigns and state-of-the-art operations. Antares was also the founding developer of Harbor Point, Stamford, Conn. Spanning 80 acres, this waterfront project is Connecticut’s largest real estate development.
Antares developed its real estate private equity practice in partnership with Goldman Sachs and other leading financial institutions. As a vertical operation, the firm specializes in investment services, capital markets, operations and construction management, sales, marketing and development. Antares has been ranked No. 5 in the real estate category on Inc. Magazine’s list of the fastest growing private companies in the U.S. Harvard Business School and Ernst & Young have recognized Beninati as one of America’s top entrepreneurs. A devoted philanthropist and fundraiser, he is a recipient of the March of Dimes Man Of The Year Award, among other honors.
“Joe has been a visionary during real estate booms and a responsible steward during the downturn,” Russell says. “We’re delighted to partner with Antares. It’s always rewarding to do business with people you like and admire.”
MODO made its debut in late January of this year as a global lifestyle hotel brand that is stylish, affordable and musically inspired. The brand features a striking Bauhaus loft design. Through a partnership with indie music label Downtown Music, MODO will present a curated collection of thousands of independent music tracks on its website and through premium sound systems and headphones at the hotels. Music will vary by location. It will be available on vinyl records, CDs and MP3 content, promising an upbeat and entertaining travel experience.
“As a music-centric brand, MODO will build buzz in a way that’s entirely different for hotels,” Russell explains. “For example, visitors to the website http://modohotels.com/ can download the music and share it on Facebook and Twitter, enabling the music and the brand to go viral.”
Full-service MODO hotels will house 100 or more rooms, a high-energy restaurant-lounge, courtyard, pool, meeting and event space, library, retail shop and high-tech gym. The brand’s RPM restaurant and lounge will be scalable in size and menu options to fit each market. Despite the rich amenities, hotel rates will be mid-tier, targeted to range from $90 – $150 per night in the U.S. with the exception of some larger gateway cities.
For more information about MODO Hotel, visit http://modohotels.com or contact David Young (firstname.lastname@example.org) principal and director of global real estate and development, MODO Hotels.
About MODO Hotel
MODO is a new global lifestyle hotel brand that’s stylish, affordable and musically inspired. The brand will feature a striking urban Bauhaus loft design. Full-service MODO hotels will each house 100 or more guest lofts, a restaurant, bar-lounge, courtyard with pool, meeting space, business center, library, sundries/gift shop and high-tech gym. In the high-energy RPM restaurant-lounge, the MODO Music Center will take center stage. Here, guests will discover new music and create their own playlists from a vast and carefully culled collection featuring independent artists around the globe. MODO will make its debut in India and Brazil. Future development is planned for gateway cities in the U.S. and elsewhere around the globe. For more information, visit http://modohotels.com/
Noel Perkins or Sharlet Brennan
Ypartnership Public Relations
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