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
edansbro@fairwoodcapital.com

-30-

COMMENTS   Show All
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 links or URLs 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

TRENDING
ADR, not occupancy, drives RevPAR, study finds
Out of the box: Modular construction matures
Examining the ADR conundrum in NYC
Get caught up on TripAdvisor's Instant Booking
How Choice Hotels is redefining itself
How to respond to negative online reviews
VIDEO
ARC Trust’s growth has endgame in mind
Smooth sailing so far in ABF migration
Charlestowne sees rising tide for indies
Video: Hunter Conference Day One recap
Video: Hunter Conference Day Two recap
LATEST NEWS
5 ways to improve responses on TripAdvisor
Hilton stays course to grow global footprint
Panel: Soft-brand boutiques, be true to vision
6 insights about hotels from Ivanka Trump
Should you conduct employee background checks?
STR: US hotel performance for April 2015
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