Thayer Lodging Group, Inc., Announces its Acquisition by Brookfield Asset Management
NEW YORK, May 21, 2014-- Thayer Lodging Group, Inc., a privately held investment company that invests in hotel real estate, announced its acquisition by Toronto-based Brookfield Asset Management.
The former Thayer Lodging will continue to operate Thayer's investment management, asset management and property management businesses as a subsidiary of Brookfield Asset Management. The new company's employees will continue to report to Bruce Wiles, Thayer's President, Leland C. Pillsbury and Fred V. Malek, Co Founders and Chairmen of Thayer Lodging Group, will serve as Co-Chairmen & Co-heads of Global Lodging of the new company and as senior advisors to Brookfield.
Lee Pillsbury said, "We are happy to announce this acquisition, which is both the capstone of a quarter-century of growth, and a clear signal that the best days for investing in global hotel real estate are yet ahead."
He concluded, "In Brookfield, we have found a partner that shares our optimistic view of the acquisition market for full service hotels in major markets worldwide, and provides access to an ongoing source of capital. We look forward to moving quickly to leverage those advantages on many fronts."
The roots of Thayer Lodging Group, Inc., go back to 1989. Since its founding, Thayer has established a consistently successful track record spanning every investment cycle. In 2004, the company formed a join venture in China with that country's largest hotel and hospitality company, the Jin Jiang Group. In 2010, Thayer expanded its partnership with Jin Jiang to acquire Interstate Hotels and Resorts, the world's largest third-party, independent hotel manager. Interstate Hotels and Resorts manages approximately 400 hotels, with annual sales over $2.7 billion, 27,000 associates, and $10 billion of assets under management. It has operations throughout Europe, Russia, India, and China as well as the U.S.
Fred Malek, said, "This transaction brings together two companies that share similar investment objectives, management approaches and a common outlook on the global real estate market."
He concluded, "We are pleased that Brookfield sees in Thayer a portal to attractive real estate investment opportunities, a proven value-added operating partner, and a profitable operating platform. At Thayer, we will continue to do what we have always done – acquire hotel real estate below replacement cost, and aggressively increase NOI by increasing market share, managing channels of distribution, and controlling costs."
Since forming its first private equity fund more than two decades ago, Thayer completed 43 hotel investments with a total acquisition cost of approximately $2.5 billion. The firm has consistently met and exceeded the investment objectives of institutional investors that seek superior returns through hotel real estate ownership.
About Thayer Lodging Group
Thayer Lodging Group, based in Annapolis, Md., is a privately held hotel investment company that was formed in 1991 by Frederic V. Malek and Leland Pillsbury. Since its founding, Thayer has established a consistently successful track record spanning every investment cycle. For more information about Thayer, visit the company's web site, www.thayerlodging.com.
Michael Frenkel, MFC PR – New York
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