Driven by the desire to expand its management platform in Europe, Boston-based Pyramid Hotel Group on Thursday announced the close of a merger with London-based hotel management and investment firm Hamilton Hotel Partners.
The deal creates an entity that manages or asset manages 141 hotels with 32,000 rooms across eight countries worth £5.3 billion (US$6.9 billion).
Hamilton, which covers Europe, the Middle East and Africa, operates or asset manages more than 50 hotels in Europe. Pyramid is currently the third-largest independent hotel management company in the U.S., operating 90 hotels and resorts independently and under the world’s biggest hotel brand companies.
Post-merger, Hamilton will continue to source hotel and resort transactions, co-invest with capital partners and manage hotels and resorts, while drawing on the strengths and experience of the Pyramid team. Both the Pyramid and Hamilton brands will be retained for the foreseeable future.
Co-founder and CEO of Pyramid, Warren Fields, will be the CEO of the combined group, with Frank Croston and Chris Evans continuing in their roles leading the Hamilton business.
Fields told HOTELS on Thursday that the combined group will seek to enter into relationships with JV partners to pursue hotel deals with both existing and new capital partners. He added that it will also respond to opportunities to manage hotels in arms-length relationships with hotel owners and investors.
“The group will focus on asset management and direct management opportunities as they arise,” he said.
“We aim to achieve similar scale on both sides of the Atlantic within three to five years and will focus on market opportunities as they present themselves,” Fields added. ”The group’s goal is to be the preferred provider of management and asset management serviced for institutional investors on both sides of the Atlantic. The group will also continue to invest with existing partners, as well.”
Croston, partner and co-founder of Hamilton Hotel Partners, added, “The appetite for hotel investment activity in Europe remains strong. Capital sources are seeking qualified and aligned management partners to support their growth ambitions. This merger allows us to significantly accelerate our own organic plans for growth and to benefit hugely from the high quality and highly experienced team at Pyramid.”