Lowe has reacquired Destination Residential Management, the vacation rental management business it had sold to Hyatt Hotels Corp. in 2018. The business comprises management agreements for individually-owned resort residences in 36 properties in Hawaii and Colorado, along with many of the properties’ homeowners associations (HOA), Lowe said in a statement.
CoralTree Hospitality Group, Lowe’s wholly-owned hospitality management vertical, will manage the rental units, resort facilities and HOAs. CoralTree will be in charge of owner relations and services, accounting and financial services, guest/concierge services, front desk and amenity management, maintenance and capital project oversight, marketing, distribution and pricing, housekeeping and procurement.
Los Angeles-based Lowe and CoralTree will be rebranding Destination Residential Management.
The deal will transition the management of more than 1,000 resort residences and 27 HOAs in Vail, Aspen/Snowmass and on three islands in Hawaii (Kauai, Hawaii Island and Maui) to Lowe through CoralTree. The transition will start once the transaction closes and continue in the next few months.
In October 2018, Hyatt acquired Two Roads Hospitality, a global operator of independent, boutique and lifestyle hotels, resorts and vacation residences. The company was created in 2016 when Destination Hotels, a wholly-owned subsidiary of Lowe founded in 1973, merged with Commune Hotels and Resorts. The acquisition price was $480 million, with the potential for Hyatt to invest up to an additional $120 million in the aggregate, contingent outcome of specific terms.
The deal marks a “welcome return” for Lowe and CoralTree to the roots of their business and to “familiar markets” where the companies have been active in the past, Co-CEO of Lowe Rob Lowe said in a statement.
“Our hospitality management business was formed in 1973 to provide residential resort management services. Lowe and CoralTree are committed to providing the same personalized service, meticulous attention to detail and spirit of hospitality that defined the company’s vacation rental management approach from the beginning,” Lowe said.
Resort residential rentals have been rising in popularity and interest has increased exponentially in the past few years, driven by lifestyle changes, interest in extended stays and an increase in remote work, Lowe said.
This is the ideal time to tap into the potential of this growing segment of the hospitality business, said Mike Lowe, co-CEO of Lowe.
HYATT’S NEW OFFERING
As part of the deal, Lowe and CoralTree will become a part of Hyatt’s new upcoming short-term vacation rental platform — Homes & Hideaways by World of Hyatt. The platform is expected to launch in the next few weeks and will feature premium, private homes and remote hideaways, ranging from beachfront properties to ski chalets, across the U.S., Hyatt said in a release.
Rental residences included in the transaction with Lowe will be available for booking (standard and award) on the new platform to around 40 million World of Hyatt members.
“We are committed to evolving access to the type of accommodations World of Hyatt members are seeking that go beyond our hotels – from a large family who travels together or guests looking to work from anywhere for an extended period of time,” said Amy Weinberg, senior vice president, brand, loyalty and data, Hyatt. “Homes & Hideaways by World of Hyatt brings a unique collection of curated homes which increases Hyatt’s home offerings and expands new ways and new places where we can extend care to members.”