Rockbridge celebrates silver anniversary

Jim Merkel was just 25 years old when he became one of four founding partners of Rockbridge Holdings, a private equity firm specializing in hospitality investment. Now the company itself is celebrating its 25th year, with Merkel at the helm. Since he became CEO in 2008, Rockbridge has transformed an investment platform into a symbiotic team of affiliates that invest in, design, develop, operate and lend to hotels.

"A Very Dynamic Industry"

Merkel’s entry into the world of hospitality was fortuitous. “From a young age, I loved the idea of the investment business,” Merkel shared. After his junior year at the University of Michigan, he got an internship with Banc One Capital Markets in Columbus, Ohio. “Then, when I graduated, the bank had just started an alternative investment fund for hotels,” he said. “Three years later, the bank was sold to JP Morgan and the hospitality investment arm was spun off in 1999 to become Rockbridge.”

Merkel finds the hospitality industry unique from an investment perspective in that while it is a part of the real estate sector, “it also requires deep operational expertise. Because of those variables, it makes the asset type very interesting. It’s also a consumer product, so we have to make sure our investments are relevant to trends that are happening. So it’s always changing—a very dynamic industry.”

That change has been reflected during Merkel’s 16-year tenure as CEO. What started as a private equity investment firm is now a vertically integrated hospitality company. Among Rockbridge’s affiliates are RBHD, Rockbridge’s development and construction affiliate and RBHM, established in 2022 to elevate the oversight of asset strategy and performance. All management companies managing Rockbridge properties roll up under RBHM. HVMG, partially owned by Rockbridge, is a hotel management company and Makeready is Rockbridge’s version of an in-house soft brand. Makeready was formed to create and operate independent lifestyle hotels and F&B concepts. Makeready assets include acclaimed properties like Emeline in Charleston, South Carolina; Noelle in Nashville, Tenn.; and The Cliff House in Ogunquit, Maine.

Noelle Nashville
Noelle Nashville (Rockbridge)

A New Brand Identity

As the company approached its 25th anniversary, Merkel wanted to make sure the company’s values were articulated to its constituents. 

“Our consumers are investors and team members. Our new branding is communicating to them and to the world what we do and what we are about. Because we’ve meaningfully evolved over the last 15 years, the branding accurately reflects who we’ve become and the values that continue to guide us," he said. It’s not that the company ethos has changed, but using updated brand language and visual identity, Merkel added, can help attract new talent and ensure all team members are on the same page. “The interesting thing you learn is that as you evolve, you have to bring everyone the tools to articulate the brand message,” said Merkel. “I needed to make it clear and articulate who we are so everyone is speaking from the same script.” That said, “Change is constant at Rockbridge. To be a relevant and resilient company, you have to be constantly changing and improving and this language just makes it easier for team members and investors. When we communicate better, we can own the process.”

While words are just words, Merkel walks the walk. “A lot of my heart and soul is in this brand. We are driven to increase value and enrich life. The two have to go together. If you are in the investment business, you are going to make money. But it’s not a fulfilling  business unless you enrich life among your workforce and within your community. We have to do both or we don’t feel successful. We want to be on a team and lift up brothers and sisters inside and outside the company. On a personal level, I believe this deeply.”

The proof is in the pudding. Merkel’s drive to achieve better outcomes for the community at large is reflected in his work to foster breakthroughs in cancer treatment and to ensure brighter futures for youth. In 2012, he created and launched RTRX, an annual innovation and collaboration experience that inspires participants to make the best possible contributions to their community. All RTRX profits—more than $7 million to date—fund cancer research. Additionally, having raised more than $1.7 million, Merkel is the top individual fundraiser in the nation for Big Brothers Big Sisters of Central Ohio's signature fundraiser, Bowl for Kids' Sake. Because of Merkel’s dedication to the community, Rockbridge has been frequently honored as a top community-focused company in Central Ohio.

Rockbridge
Headquarters: Columbus, Ohio
Structure: Private Equity
Portfolio: 96 active investments; $4.3 billion current assets under management
Website: rockbridgeholdings.com