TPG Hotels, Resorts and Marinas (TPG), Providence, Rhode Island, has beefed up its third-party management business with the acquisition of Marshall Hotels and Resorts, which specializes in operating 3- and 4-star branded hotels and resorts. The combined company, which becomes one of the 10 largest third-party providers, will be headquartered in Salisbury, Maryland, and will oversee all day-to-day operations of the combined portfolio and Mike Marshall will serve as president and CEO. Details of the deal are not being released.
The new business unit intends to seek strategic management company acquisitions as well as aggressively pursue one-off third-party engagements, Robert Leven, chief investment officer, The Procaccianti Companies, told HOTELS on Tuesday.
Marshall said the move provides the obvious efficiencies as well as access to greater capital, allowing it to invest alongside ownership groups when prudent, as well as attract a new level of talent sophistication.
“This was a unique opportunity, as this acquisition enabled TPG Hotels, Resorts & Marinas to insert one of the most experienced senior-level hospitality talents in the industry, Mike Marshall, into a leadership position responsible for the continued success of the combined portfolios and future growth,” Leven said.
Leven added that because Marshall is serving as president/CEO of the combined management company, logistically it makes sense to base the operations and third-party management business at the corporate offices in Maryland, while retaining our staff in Rhode Island. “It is also important to note that TPG Hotels, Resorts & Marinas is part of the Procaccianti family of companies which remains based in Rhode Island and supported by a significant corporate infrastructure,” Leven said.
With the completion of the transaction, TPG will boast a portfolio of more than 130 operated properties comprising nearly 20,000 rooms in 26 states. The management company will focus on expanding the third-party platform.