Hotel investment company Noble Investment Group and hotel management companyInterstate Hotels & Resorts have announced that Noble Management Group, Noble's operating division, is now part of the Interstate organization. The acquisition by Interstate, the price of which was not disclosed, creates the Noble-Interstate Management Group, a dedicated management division of Interstate. The group will be responsible for the management of Noble's existing and expanding portfolio of hotels.
Jim Abrahamson, Interstate's COO and CEO designate, told Hotel Management that the deal was made due to Interstate and Noble being so closely aligned, both business wise and culturally. "Our mutual interests crossed together," Abrahamson said. "We don't look at it so much as a sale. This is really a strategic benefit for both."
This strategic joint effort immediately adds approximately 60 hotels to Interstate’s management portfolio, which now encompasses nearly 400 hotels worldwide.
The deal allows Noble to move forward and look for more acquisition targets, while allowing Interstate to manage both its properties and ones in the current Noble portfolio. Abrahamson said the there will be quick integration of the new Noble-Interstate Management Group. "This deal solidifies our leadership position," Abrahamson said. "It creates terrific opportunities moving forward."
Through its discretionary, real estate private equity funds, Noble has invested more than $2 billion in lodging assets, including 11 new investments to date this year. This new management platform allows Noble and its senior leaders to remain focused on sourcing value-added investment opportunities, executing asset repositioning strategies and asset managing its owned hotel portfolio.
The longstanding relationships between the senior leaders at both Interstate and Noble helped enable the creation of this new management platform. Abrahamson has developed professional and personal relationships with Noble and its senior leaders over the past two decades. In addition, prior to joining Noble in early 2005 as a partner in charge of asset management, Bob Morse served as chief operating officer of Interstate.
"Noble Management Group brings a portfolio of high-quality branded hotels and outstanding operating talent to the Interstate organization," Abrahamson said. "This underscores the confidence of major hotel real estate investors in Interstate and further leverages our exceptional platform of associates, business intelligence systems and global management infrastructure."
Tom Hewitt, chairman and CEO at Interstate, said, "We have brought together two industry leading operating organizations, which will enable a built-in growth platform for both companies, truly a win-win arrangement benefitting owners, investors and associates at Interstate and Noble."
"In an increasingly complex and competitive business environment, this marks an unparalleled opportunity for two successful, mission-driven operating companies to put in place the infrastructure and resources that we believe will deliver great value to Noble’s portfolio of hotels," said Mit Shah, Noble's CEO.
The deal comes on the heels of Noble's sale of the Courtyard by Marriott Charleston Historic District to RLJ Lodging Trust for $42 million.