WE HAVE THE FLEXIBILITY TO GO SMALL , MEDIUM OR LARGE , WORKING EITHER WITH THE GEORGETOWN CAPITAL OR SOME OF THE LARGER PE FIRMS ALSO FOCUSED ON HOSPITALITY .
– MICHAEL FISHBIN
mixed-use development in Columbus , Ohio .
Fishbin says Georgetown likes new urban markets , which include college towns and good work-play environments , and they believe those opportunities will be more present in the near term . They prefer sevenday-a-week markets with multiple demand generators and wouldn ’ t look at seasonal markets . “ But the challenge will be finding deals that you can underwrite to the IRR hurdles within a three- to four-year window ,” he adds .
Property size will likely range between 200 and 350 rooms – more compact full-service properties , as well as luxury and upper-upscale . Fishbin adds that Georgetown likes independents and soft brands , and they will also look at premium-branded select-service opportunities . “ We ’ re building one ( select-service ) and will probably announce a second soon – an extendedstay hotel in suburban Atlanta .”
A significant portion of the new US $ 1 billion platform is the Georgetown investors and family offices that it works with . Fishbin says there will be situations where they will “ go big ,” and in those instances would team with some of the larger private equity groups focused on hospitality . In fact , it did make a failed portfolio bid with another capital partner this past summer .
“ We have the flexibility to go small , medium or large , working either with the Georgetown capital or some of the larger PE firms also focused on hospitality ,” Fishbin adds .
The new platform will also consider new development , but only very selectively , Fishbin says , and the main focus will be on acquisitions .
CULTURAL FIT The deal with First Hospitality , which has about 55 hotels under management and equity interests in about half of those projects , came about because of like-minded , bullish viewpoints about the industry , according to Fishbin , and the need to align with a strong manager that could strengthen Georgetown ’ s skill set as it ramped up for growth . After looking at about 10 management companies , First Hospitality rose to the top because of the culture that Schwartz built and Duncan ’ s charge to invest mightily in terms of the people , the processes and the technology of the company . A handshake deal was done in early 2021 and since then the two companies have been working to identify acquisition opportunities , underwrite , close , onboard and operate . “ We ’ ve been very focused on aligning our teams and actively looking to grow our businesses ,” Fishbin says .
Important for First Hospitality was the opportunity to continue to lead its organization day-to-day . It will also continue to source third-party opportunities . “ We love their culture . So , they very much are at the leadership on the day-to-day of the management ,” Fishbin says , adding that the deal provides flexibility for Georgetown to look at opportunities where another management company might be a better fit .
“ Georgetown is a group that punches above their weight ,” Fishbin closes . “ It ’ s never about them ; it ’ s about the projects … They ’ re kind of financial wizards , and they ’ ve been really successful for their investors , many who go back to when Marshall Rose started the company , and that speaks a lot .”
First Hospitality ’ s Home2 Suites by Hilton Chicago McCormick Place lobby .