Aimbridge Hospitality, the biggest third-party hotel management company in the world, announced plans “to enhance and streamline” its U.S. operations, which includes adding an Owner Relations team to its structure and moving to two focused operating divisions named Aimbridge Select and Aimbridge Full Service, as it moves forward with a hole in leadership after its CEO and CFO left the company.
A new CEO has yet to be announced, but former Choice Hotels International CEO, Steve Joyce, has been on the Aimbridge board since November, with some speculating he is calling the shots.
This is the second major reorganization at the management company after in 2022 it announced a structural reorganization of its business by creating operational divisions: Full Service, including resorts; Evolution Lifestyle; Enhanced Select Service; Select Service; plus, two geographically derived divisions, EMEA (its former Interstate business renamed) and LatAm.
The new operating structure is set to go into effect in mid-February and is basically shrinking down what Aimbridge had structured prior.
“The vertical structure we are committing to in all levels of Aimbridge is advantageous for owners, and we are able to deliver results and value in a way that exceeds expectations and sets Aimbridge apart within our industry,” said Allison Reid, chief global growth officer, at the time.
Expectations were to take Aimbridge public under the leadership of prior Mike Deitemeyer, but those plans were shelved in the post-pandemic vapor and a subsequent choppy market amid higher interest rates.
The new U.S. structure, Aimbridge hopes, will help recharge and recenter growth. The addition of an Owner Relations team is, Aimbridge said in a release, a “nod to the ever-evolving, fast-paced environment hotel owners, asset managers, and hospitality brands face daily and looks to provide partners with superior solutions that meet their biggest challenges.”
The Owner Relations team will also launch the Aimbridge Owners Council, a new advisory committee that will include representatives across ownership groups.
Aimbridge has appointed Aly El-Bassuni, divisional president – owner relations, to lead the team. El-Bassuni joined Aimbridge in 2023 as Divisional President – Enhanced Select Service. He will report to Allison Reid, chief global growth officer for Aimbridge.
“The addition of a dedicated Owner Relations team builds on the work that’s been done over the last two years and points to the ongoing investment Aimbridge is making in helping owners meet ambitious goals,” said Mark Tamis, global president – Aimbridge. “This team will be focused on looking across the portfolio for opportunities that drive performance, mobilizing expert resources across the organization and implementing improvements that benefit our partners.”
Aimbridge will now have two divisions within its U.S. operations:
- Aimbridge Select, a select-service division that includes select enhanced, select, economy and extended stay properties. It will be led by Simon Mendy, divisional president – select service.
- Aimbridge Full Service, a full service, luxury, and resort business, including Evolution, Aimbridge’s Lifestyle vertical. It will be led by Rob Smith, divisional president – full service.
“The industry is at an inflection point as brands continue to move to a predominantly franchised model and owners lean on third-party managers to provide the operating experience and track record they need to succeed,” said Tamis. “The strategic shifts we’re making to our U.S. operating model will inject even greater agility and effectiveness into how we run our business, and ultimately, drive higher property and portfolio performance.”
As part of its strategic enhancement plan, Aimbridge also plans to redeploy its above-property operations teams by geography to reinforce and strengthen the close-knit and collaborative network between hotel and above-property support teams and deepen its market expertise.
Operations in the company’s international divisions servicing EMEA and LATAM remain unchanged.