INVESTMENT
GROWTH PLANS As Highgate continues to look at deals , Azarbarzin says the group will be aggressive buyers if they love an opportunity . “ If we want to acquire an asset , it will be difficult to get us out of the way . But we ’ re not just aggressively buying ,” he says . “ We ’ re looking for strategic assets that we can add value to from both an operational perspective and capital perspective … Once we like it , we will get it . But it ’ s not like we have a requirement to get a certain number .”
Growth will come through acquisition and pure management , Azarbarzin says , adding that Highgate has many potential deals in Florida , Latin America and the Caribbean , and across the continental United States . And then more importantly , Europe , he says . Highgate has big eyes on Europe , where Highgate has had a presence for more than 20 years . It is interested in not only single asset management deals , but Azarbarzin says they are looking to potentially acquire other management companies in Europe . Highgate most recently took over management of the Grosvenor House Suites on Hyde Park .
Currently , Highgate has nine or 10 hotels set to open in the next six months , according to Azarbarzin , predominantly management deals and again mostly in Florida and Latin America . He highlights the 2022 opening of the Amrit Ocean Resort & Residences on Singer Island , Florida , which he says is going to be the envy of the wellness community .
There are also a number of deals working through the pipeline in Highgate ’ s select-service business unit led by COO Rob Dann , which Azarbarzin says gives him the comfort and freedom to concentrate on the luxury and lifestyle portfolio , which currently sits at approximately 50 properties . Also reporting to Azarbarzin is a full-service
Highgate ’ s Park Lane hotel in New York City
brand unit with a portfolio that includes more traditional Westins , Sheratons , Hiltons and the like , as well as a development team for design , preopening , etc .
On the select-service side , Highgate is developing new four-packs and twopacks of hotels and is looking for sites in the secondary and tertiary markets . “ Our pipeline calls are two- or three-hours long . We are circling multiple projects on any given day ,” Azarbarzin says .
Also on his plate is a mission to create a food and beverage division to service luxury and lifestyle properties . Azarbarzin says he is not going to create a big in-house team , but rather tap his contact list to start developing exclusive agreements with some of the best thinkers and chefs .
There is another Highgate business unit working as receivers and doing loan resolution , but that business hasn ’ t yet taken off . “ There have been a few that we have been involved with , but we haven ’ t
seen the number of foreclosures that you would have expected when hotels are shut down for so long and businesses being down .”
While he thinks this unit will grow over the next six months , he doesn ’ t call it a core piece of Highgate ’ s business . “ Our core business will be to acquire new hotels or portfolio of hotels , and acquire thirdparty management contracts ,” Azarbarzin says .
As far as selling assets go , Azarbarzin says he doesn ’ t see the time as right to capitalize on the work Highgate has done . They are sellers when the timing is right , but he adds that Highgate is a longer-term investor and not an opportunity fund with an exit strategy . “ So , we look at it a little bit differently and potentially waiting for the results to come in to get the full value of our investment .”
BIGGER PICTURE Naturally , managing a big portfolio
54 hotelsmag . com November / December 2021