GREENWOOD VILLAGE, COLORADO Richfield Hospitality added three hotels to its portfolio in January, following on the six properties it added during 2010.
Richfield has taken over management of the 564-key Sheraton Bloomington, Minnesota, and will oversee a US$12.5 million renovation of the hotel to convert it to the DoubleTree Hotels brand.
Richfield has also signed contracts to acquire two unidentified full-service hotels in major metropolitan markets, one of which Richfield will invest 75% of the capital, and the other as a sliver investor. Both transactions are expected to close during the first quarter, and Richfield will manage both hotels.
“We met or exceeded all of our 2010 goals and are particularly encouraged by a number of new partnerships and relationships that will allow us to leverage our and our partners’ capital to aggressively acquire hotels in 2011,” says President Greg Mount. “We expect to exceed our 2010 pace in 2011 and add as many as 10 properties to our portfolio both through third-party management and acquisitions or joint venture partnerships. Our partners, Richfield and our parent company, City Development Ltd., continue to have significant capital to deploy, ranging from structured finance to joint ventures and direct acquisitions.”
Third-party management will remain Richfield’s core business, although it has the flexibility and capital to provide sliver equity of up to 25%. “We have added significantly to our bench strength with experienced operators like Moby Ahmed and Tom Clearwater to accommodate our recent growth and our planned growth this year,” Mount says. “We are opportunistic but will grow on a deliberate, planned basis.”