Bigger is better. At least that is a belief held by some in the third-party management space. The newest case of M&A is Denver-based Stonebridge Companies, whose portfolio includes select-service, extended-stay and full-service properties in primary and secondary markets throughout the U.S., acquiring Ocean City, Md.-headquartered Real Hospitality Group.
Financial terms of the deal were not disclosed.
After the deal closes, Real Hospitality Group Founder and CEO Ben Seidel will join the Stonebridge team as principal and a member of the firm’s Board of Directors.
“From the day Real Hospitality Group was born 13 years ago, the growth of the company has primarily been the result of the support and the trust of the entire RHG team, from our owners, to our employees, to the hotel brands we have partnered with,” Seidel said. “This alignment with Stonebridge offers our owners the buying power, support, and resources that have become essential in today’s business and lodging environment while providing the geographical diversity that facilitates our ‘Boots on the Ground’ operating principle.”
“We’re thrilled to join forces with RHG as we embark on this next chapter of our evolution,” said Navin Dimond, founder and CEO of Stonebridge Companies. “The blending of these two companies will create a dynamic, leading hotel management group that will drive innovation and create exciting growth opportunities for our team members.”
The transaction broadens Stonebridge’s reach and bolsters its portfolio to now comprise more than 160 properties, encompassing 24,000 rooms across 20 states. The combined company will be headquartered in Denver, while maintaining its East Coast presence.
This transaction is an opportunity for us to pave the way for elevated success and prosperity for a shared vision for the future. We’re looking forward to a seamless integration that will preserve the best aspects of both organizations and foster a culture of collaboration and innovation for our team members,” Dimond further said.
Not unlike lodging companies buying up other brands or companies, third-party managers appreciate scale, too, as Seidel pointed out—buying power, support, tech and other resources “that have become essential.”
Similar deals include Remington Hotels’ 2022 acquisition of Chesapeake Hospitality, which took its portfolio up by 30 hotels. Others, like Hotel Equities, have grown via strategic alliances.
