This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.  Find out more here  Close
Executives launch fund to acquire hotels
December 3 2008

Three senior hotel executives have launched a hotel investment fund, Fairwood Hospitality Investors, LLC, formed specifically to acquire hotels since the recent credit and equity market upheaval.

MEMPHIS, Tennessee/NEW YORK, New York—Three senior hotel executives have launched what is believed to be the first hotel investment fund formed specifically to acquire hotels since the recent credit and equity market upheaval.  Fairwood Hospitality Investors, LLC is capitalized with $150 million in equity contributed by the principals of Fairwood Capital LLC, a newly formed private equity fund, and two institutional investors.  

 Fairwood Capital’s principals are hospitality and real estate veterans, including:

• Robert Solmson, the founder, former chairman and CEO of Memphis-based RFS Hotel Investors, Inc., a publicly held real estate investment trust (REIT), listed on the NYSE.  The company was the first hotel REIT formed in 1993 and was acquired by CNL Properties for approximately $700 million in 2003;
• Ed Ansbro, former senior vice-president of Equity Inns, Inc., a Memphis-based REIT, listed on the NYSE.  The company and its portfolio of 130 hotels was acquired in 2007 by Whitehall Street Global Real Estate Limited Partnership for $2.2 billion; and
•  Richard Reiss is chairman of New York-based Georgica Advisors and a number of other private investment entities.  Reiss was previously a RFS board member. 

"We believe the turmoil in the credit markets, together with the prospect of a recession, the depth and duration of which is unknown, will create compelling opportunities to acquire hotels at historically attractive prices,” Solmson said.  “Assuming moderate leverage of approximately 50 percent, we will have up to $300 million in buying power and plan to invest this sum over the next few years.  We intend to acquire an institutional grade portfolio of premium-branded select-service and full-service hotels that will be diversified by brand, geography and market segment.  Initially, we will focus on Marriott, Starwood (including Sheraton and Westin) and Hilton-branded products.”

Solmson noted that the company has flexibility in structuring transactions.  “We intend to be entrepreneurial in our approach and creative in structuring transactions, and we have the ability to move quickly.  We will work directly with owners, developers, brokers and management companies to source transactions.  It is anticipated that all of the hotels will be operated by third-party management companies.” 

The company will have offices in Memphis and New York City. 

Contact information:
Ed Ansbro
850 Ridge Lake Blvd.
Suite 220
Memphis, TN  38120
Tel. 901-842-5307
Fax: 902-842-5310


Login or enter a name   Post Your Comment  Check to follow this thread via email alerts (must be logged in)
(4000 characters max)

Comments that include blatant advertisements or links to products or company websites will be removed to avoid instances of spam. Also, comments that include profanity, lewdness, personal attacks, solicitations or advertising, or other similarly inappropriate or offensive comments or material will be removed from the site. You are fully responsible for the content you post. The opinions expressed in comments do not necessarily reflect the opinions of Hotel News Now or its parent company, STR and its affiliated companies. Please report any violations to our editorial staff.

Tracking Baha Mar’s development trek
What to know about Marriott’s Starwood deal
Marriott-Starwood deal is a 'game changer'
Marriott/Starwood must clear loyalty hurdle
The 10 largest hotel companies by room count
Analysts talk Marriott’s new brand overlap
Concord embraces change
Red Roof Inn on international track
2015 in 10 words
Condor Hospitality takes flight
HNN recaps Lodging Conference 2015 Day One
Relationships key in Paris, Brussels rebuild
Snapshot: A labor of love in Silicon Valley
Straight-to-room is coming … and I can’t wait
Finding the best talent is a two-way street
STR: US results for week ending 21 November
Fitness can drive guest loyalty, profitability
Contact Us
Hotel News Now
18500 Lake Rd.
Suite 310
Rocky River, Ohio 44116
Copyright © 2004 - 2015 Hotel News Now, a division of STR, Inc. All Rights Reserved.   Privacy