Starwood Capital Group, owner of Baccarat Hotels & Resorts and the new 1 Hotels boutique brand, announced on Wednesday that it has acquired 50 economy extended-stay hotels from Mount Kellett Capital Management LP for its InTown Suites brand.
The private investment firm, courtesy of the founder and former CEO of Starwood Hotels & Resorts, Barry Sternlicht, added 6,106 rooms to InTown Suites via the deal, effectively making InTown Suites the largest owner of economy extended-stay hotels in the United States with 189 locations and 24,154 suites. The hotels are primarily spread out across the Southeast in North Carolina, Florida, Texas, Georgia and Alabama.
"The economy extended-stay sector continues to outperform other hospitality sectors, including luxury, and today's transaction marks another important step in our effort to capitalize on this growth opportunity," said Suril Shah, Starwood Capital Group's acquisitions managing director, via a release. "Since acquiring InTown, we have seen its valuation increase by more than 30 percent, and we are confident that the upward trajectory will continue."
"We are very focused on maintaining our leadership role by aggressively growing within our sector through acquisition and ground-up development," added Jonathan Pertchik, CEO of InTown Suites. "We expect to apply the same discipline, process and focus that InTown has used in its other acquisitions to continue to outperform competitors."
Starwood Capital Group has been making a lot of headlines lately. Not only has the firm greatly expanded InTown Suites' footprint since acquiring the brand in 2013, but it has also made waves with the recent introduction of 1 Hotel South Beach and Baccarat Hotel & Residences New York, both of which were debut properties for their respective brands.
Baccarat is planning on opening properties in Rabat, Morocco; Dubai; and Doha in the next few years. The 1 Hotels brand is planning on opening 1 Hotel Central Park and 1 Hotel Brooklyn Bridge Park in New York next.
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