* Source Hotel Operations
A select-service portfolio across seven states
Plano, Texas-based Aimbridge Hospitality has taken over operations at ten hotels owned by a joint venture formed by Prospect Ridge and Fulcrum Hospitality. The operator, which describes itself as the world’s leading third-party hotel management company, thereby secures a new portfolio mandate from institutional investors.
The properties operate under select-service brands from Hilton, Marriott and Hyatt. They are located in Alabama, Florida, Georgia, Kansas, Maryland, Texas and West Virginia, all states where Aimbridge already has a significant operational presence.
An established relationship with the owners
For Aimbridge, the mandate builds on previous work with both investors. Eric Jacobs, Chief Global Growth Officer at Aimbridge Hospitality, said that being chosen to manage the portfolio on behalf of such respected institutional partners reflected the strength of the company’s platform and the results its teams deliver every day.
He added that Prospect Ridge and Fulcrum were familiar with Aimbridge’s teams and operating model, and that the company was proud to extend the relationship across these ten hotels, with the aim of adding value for its partners and for guests at the newly managed properties.
The announcement comes three weeks after Aimbridge took over three historic boutique hotels from Gorman & Company in Wisconsin and Illinois, a deal also led by Eric Jacobs.
University markets and renovation programmes
Several of the hotels are located in or near major university hubs, including Auburn University, the University of Florida and West Virginia University. Some of the assets have recently been renovated.
The remaining properties are due to benefit from improvement programmes planned over the next few years. The operator will therefore support the owners through asset repositioning phases, beyond day-to-day operations alone.
A platform in pursuit of institutional mandates
Aimbridge says it operates more than 80 globally recognised hotel brands, as well as independent luxury and lifestyle assets. The group highlights its use of proprietary data and analytics to drive the performance of hotels entrusted to it by owners, an approach illustrated this year by the launch of S.P.A.R.K., its global operational management platform.
Our analysis – The mandate confirms the appeal of the select-service segment, supported by recurring demand generators such as university campuses, for institutional investors who rely on third-party operators to execute their value-creation plans. It is part of the growing separation between brands, owners and third-party operators analysed by La Tribune de l’Hôtellerie.
At a glance by The Hospitality Tribune
Aimbridge Hospitality takes over management of a 10-hotel portfolio
Owner: joint venture between Prospect Ridge and Fulcrum Hospitality
Brands: Hilton, Marriott and Hyatt select-service hotels
Footprint: Alabama, Florida, Georgia, Kansas, Maryland, Texas and West Virginia
Demand drivers: several assets near Auburn University, University of Florida and West Virginia University
Next steps: planned property improvement projects for non-renovated assets within the next few years
