Rosemont hotel developer targets high-end property buying spree
The partnership is a brave bet on a real estate sector that was initially leveled by the pandemic and has worked to recover since then, with a grim outlook for when or if certain types of travel will one day be as robust as they were. before COVID. While leisure travel increased across the country over the summer, business travel remains at an all-time low, and both have been slowed by the spread of the delta variant.
But First Hospitality and Georgetown are among the investors salivating at the opportunity to buy cheaply and move up the market.
“We know that hotel assets will inevitably experience a strong rebound in the years following the pandemic, ultimately creating significant value for investors,” Georgetown CEO Adam Flatto said in the statement. âFirst Hospitality has an excellent reputation and we are honored to partner with them as we launch this business. “
The joint venture will be led by First Hospitality President and CEO David Duncan and Georgetown CEO and Hospitality Manager Michael Fishbin, who joined the company in February 2020. Stephen Schwartz, who founded First Hospitality in 1985 will continue to chair the company, and his family will retain “long-term strategic control” of the business, the statement said.
âWe have maintained a consistent focus on the growth and long-term success of First Hospitality for more than three decades,â Schwartz said in the release. âOur family is thrilled to partner with Georgetown Co. to continue to acquire exciting assets and grow our management portfolio nationwide.â
First Hospitality has been particularly active in Chicago in recent years. The company developed the three-brand Hilton property which opened next to McCormick Place in 2018 and was part of the development team behind the 223-room Sable Hotel which opened in the middle of Navy Pier more early this year. The company owns or manages more than 50 hotels across the country, including 21 brands.