TO BECOMES FIRST HIGHGATE CEO
Highgate ’ s Arash Azarbarzin ( l .) and Mahmood Khimji are in lock-step on business strategy and hospitality philosophies .
INVESTMENT
AZARBARZIN vibes with
KHIMJIS
TO BECOMES FIRST HIGHGATE CEO
Long-time contrarian player Highgate began prolifically adding to its portfolio during the pandemic and in September told HOTELS exclusively it made another contrarian play – hiring its first-ever CEO in 30-year hotel lifestyle and luxury leader Arash Azarbarzin .
In an exclusive interview with HOTELS , Azarbarzin , who spent the past four years as CEO of the hotel portfolio for Barry Sternlicht ’ s SH Hotels & Resorts , talks about his new role with the New York City-based owner-operator and his plans going forward for one of the biggest hotel owners in the U . S .
Yes , Highgate has been on an acquisition spree during the pandemic , more recently adding to its portfolio Trust Hospitality and its 22 hotels with 3,100 rooms ; Heavlin Management Co ’ s . 11 properties ; and by making the biggest deal during the pandemic with highly valued and ongoing capital partner Cerberus Capital – the acquisition of
Colony Capital ’ s 197-hotel , 23,000-room hotel portfolio in a deal valued at US $ 2.8 billion , including US $ 67.5 million of gross proceeds and the assumption of US $ 2.7 billion in debt . It is likely not done yet as it looks to grow for value-add opportunities , with a growing emphasis on limitedservice properties and as it looks more often further afield to Europe .
Azarbarzin is now charged with managing the portfolio with some 350 hotels comprising approximately 65,000 rooms , and says he took the job because his philosophies mesh so very well with Highgate principals Mahmood and Mehdi Khimji . In fact , Azarbarzin says he was not actively seeking a job and there was no active search underway by Highgate , but when he started talking more to the brothers , he realized the moment for change was at hand .
“ We ’ re so aligned on our vision of what the hospitality company needs to be and where the hospitality business is going ,” Azarbarzin confirms . “ It was just a perfect storm where we ’ re having dinner and
52 hotelsmag . com November / December 2021