NEWPORT BEACH, CALIFORNIA Tarsadia Hotels has divided its corporate structure into three companies: Evolution Hospitality LLC, T2 Development LLC and Tarsadia Investments LLC. The new alignment will allow all three companies to pursue opportunities on their own behalf, as well as collaborate on projects together.
Evolution Hospitality comprises the hotel management team from Tarsadia and will be led by President John Murphy, a 12-year veteran of Tarsadia who has served as senior vice president of operations for the last four years. Evolution is positioned to grow by acquiring fee-based management contracts and associated joint venture, sliver-equity or wholly-owned real estate investment opportunities.
Evolution is under contract to manage the Tarsadia portfolio and two third-party management contracts with Chesapeake Lodging Trust.
“Our goal is to be top-of-mind when someone is searching for management services for hotels that fit well into our wheelhouse—full-service, lifestyle and premium branded focused-service hotels, primarily in the Western United States,” Murphy says. “We are equally interested in working with partners that offer an equity participation. We’ve always thought like owners, driving sales, ROI and NOI through our talented team and brilliant technology. It’s how we do business now, and that will never change.”
T2 Development will be led by President Mont Williamson and includes the development and construction team from Tarsadia. Prior to joining the Tarsadia team two years ago, Williamson managed Taisei Construction for 14 years as its executive vice president. T2 Development has the turnkey abilities to develop an asset from site and brand selection and entitlement through the design, construction and delivery of an operating hotel facility. This full-service approach applies both to new facilities and integrated renovation programs.
Through CEO Mike Patel, T2 Development offers over 30 years of hands-on hospitality development experience and brand knowledge previously available only to the Tarsadia portfolio. T2 Development will grow through third-party merchant build projects, joint venture or sliver-equity deals, turnkey joint venture opportunities, or as an owner operator.
“We know of other companies that can provide similar development services, but there aren’t many that also want to put ‘skin in the game,’” Williamson says. “Even fewer have the ability to offer a turnkey solution that includes management capabilities and an investment company relationship. The alliance of these three companies allows us to provide a complete package.
“We know we will have many different opportunities to grow, including some instances where we only provide third-party development services. Our primary focus, though, will be to partner with landowners with sites that could support profitable hotels who need the expertise to develop and manage the asset, or building a portfolio of hotels ourselves,” Williamson says.
Tarsadia Investments will be led by Tushar Patel and Greg Casserly. Representing clients holding a diversified portfolio that includes hospitality assets, pharmaceuticals, financial services, infrastructure funds and net leases, Tarsadia Investments will manage its clients’ growth through the selective acquisition of a variety of investment assets.
“Tarsadia Investments has always been very active in the hotel space, and that won’t change,” Casserly says. “We’re always on the hunt for new deals and enjoy working with the guys that know how to make them happen.”
As Tarsadia Investments’ clients broaden their interests in areas outside of hotels, Tarsadia Hotels founder BU Patel and his two sons, Mike and Tushar Patel, see the tremendous opportunities available in the establishment of the new entities by their respective ownership groups. “We are excited for these teams because we know their capabilities; they have been the foundation for all the value we’ve added to the Tarsadia Hotels clients’ portfolios during the past 35 years and have been instrumental in our success,” BU Patel says. “Mobilizing these teams as the economy begins to improve is great timing for this incredible opportunity and we look forward to their success.”
Matt Raine has been hired by the alliance as senior vice president of business development. In this role, he will be responsible for new hotel business activity through management contracts, joint ventures and acquisition opportunities. Prior to joining the team, Raine was senior vice president of development for Hard Rock Hotel Holdings and a 10-year veteran of Starwood Hotels & Resort Worldwide.