DALLAS--(BUSINESS WIRE)--Encore Hospitality (“Encore”), a subsidiary of Encore Enterprises, today announced that it has formed a joint venture with Sage Hospitality to acquire and manage premium branded hotel assets. The joint venture will combine Encore’s rapidly expanding portfolio of hotel assets with Sage Hospitality’s nationally renowned hotel management expertise. As part of the joint venture, Encore has named Sage Hospitality exclusive third-party management company for all of Encore’s existing and newly-acquired hotels. Pineapple Management Services, a division of Encore, will assist Sage Hospitality with some of the day-to-day management responsibilities, while Sage Hospitality will assist with due diligence in Encore’s acquisition process.
“This is an exciting time in the evolution of Encore Hospitality and we are very pleased to partner with Sage Hospitality,” said Dr. Bharat Sangani, Chairman of Encore Enterprises. “We are currently seeing tremendous opportunity to purchase hotel assets well below replacement cost in markets with strong fundamentals for economic recovery. Bringing Sage Hospitality on board at this inflection point is a strong and strategic move as we seek to drive performance at every one of our hotels. Not only does Sage Hospitality bring best-in-class management, their team has a depth of experience that is unparalleled in the industry, and we look forward to working with them on many levels as we continue to build our portfolio.”
“This agreement is a strong endorsement of Sage Hospitality’s deep industry expertise and our world-class hotel management track record, and we are honored to welcome Encore as a highly valued partner,” said Walter Isenberg, President and CEO of Sage Hospitality. “Encore’s vision for hotel ownership and operations fits perfectly with Sage’s ability to effectively manage these assets while creating value across market cycles. They are well-positioned to continue gaining exciting momentum in the marketplace, as they bring vast capital resources, real estate expertise and hotel asset management capabilities. We look forward to collaborating with the Encore team to continue building one of the finest portfolios in the country.”
Pat Barber, CEO of Encore Enterprises, stated, “Since its founding in 1999, privately-held Encore Hospitality has purchased over $400 million of hotels consisting of 40 hotels in 13 different States. Encore’s portfolio currently includes six hotels. Encore’s Opportunity Fund I last year raised $150 million and is dedicated to hospitality-related acquisitions. Encore will continue to focus on acquiring premium branded select and full service hotels in primary and secondary markets throughout the United States.”
Sage Hospitality is an established leader in hotel management, development and ownership. Currently, they operate 63 hotels in the select service, full service and luxury/boutique segments. As part of the joint venture, Sage has assumed management of all of Encore’s existing hotel properties, the Hampton Inn San Antonio Sea World, the Radisson Memphis Airport, the Courtyard Biloxi North/D’Iberville in Mississippi, the Courtyard Spanish Fort in Alabama, and the Fairfield Inn & Suites Spanish Fort in Alabama.
About Encore Enterprises
Encore Enterprises, Inc. is a diversified commercial real estate firm with a unique blend of expertise, innovation and efficiency in acquisition, investment, asset management, property management, leasing and development. Founded in 1999, Encore acquires, develops and re-develops mixed use complexes, limited and full service hotels, multi-family projects, retail projects, and manages hotel and luxury vacation condominium resort properties and homeowner associations. Since its inception, Encore has completed over $1 billion of acquisition and development, with a focus on the southern, eastern and Midwestern United States. For more information, please visit www.encore.bz.
About Sage Hospitality
Sage Hospitality is one of the largest privately-held hotel management and development companies in the nation, operating 63 hotels in 26 states with a total of 13,118 guest rooms. Sage owns and operates hotels representing a broad array of major international brands, including InterContinental Hotels, Hilton, Marriott, Starwood, and Wyndam as well as independent luxury boutique hotels. Sage Hospitality helps owners increase occupancy and revenues, with 65 percent of Sage-managed hotels gained Revenue per Available Room (RevPAR Share Index) in 2009. Sage Hospitality also helps owners achieve distinction in key areas such as design and sustainability, garnering LEED Gold and LEED Silver certifications. Founded in 1984, Sage Hospitality is based in Denver with offices in New York City. The company has over 6,000 employees.