INVESTMENT
BENCHMARK PYRAMID
“ better together ”
MERGER BETWEEN TWO SYNERGISTIC MANAGEMENT COMPANIES BRINGS THEM INTO THE “ BIG LEAGUES ” WITH ABILITY TO COMPETE FOR ANY TYPE OF OPPORTUNITY .
by JEFF WEINSTEIN , EDITOR IN CHIEF
Now more than ever , scale matters in the hotel management space – good , bad or indifferent . It is harder than ever to generate efficiencies without it and it is harder to grow without being able to offer a breadth of services across segments . So , with a tagline “ better together ,” Benchmark Global Hospitality and Pyramid Hotel Group merged in late September to create Benchmark Pyramid with some 210 properties in the U . S ., Caribbean and Europe , and about US $ 3 billion in annual operating revenue under management . But the deal , according to the two principal executives at the new firm , was far from just about creating scale . They say they were both looking for , and needed , the right fits in terms of strategy and culture to make a merger work , or at least work well .
CEO Warren Fields , formerly of Pyramid , and President Alex Cabañas , formerly of Benchmark , told HOTELS in October that the initial goals are simple : become the employer of choice as well as the manager of choice . It ’ s about becoming a one-stop shop for owners because of the new company ’ s expertise across independent , lifestyle , soft brands , full-service , select-service and resorts , as well as corporate conference centers . Benchmark Pyramid , essentially an equal merger between the two legacy companies , also offers hospitality advisory and technical services , from receivership and asset management to project management . “ There really isn ’ t a single type of hotel that we can ’ t operate and operate effectively ,” says Fields .
Benchmark Pyramid also has a European platform which will continue to be led by Frank Croston , CEO of U . K . -based Hamilton Hotel Partners . With so much fragmentation of management in Europe , the newly merged company sees plenty of opportunity there . The inside joke refers to Croston and Hamilton as the pretty hood ornament on the car . “ I think there ’ s a lot of forward momentum in Europe and a lot of opportunity ,” Fields says . “ We know there ’ s going be a ton of growth in North America and the Caribbean , but Europe is such a nascent market for really good management and a market that ’ s shifting a lot .” Transformational moments “[ The merger ] is about keeping things really interesting in the business , energizing our people behind that , making sure we ’ re delivering for our owners ,” Cabañas adds . “ And if more growth comes as a result of that , it probably will because we ’ ll be good at
28 hotelsmag . com January / February 2022