Bainbridge DXS and Torrey Pines Hotel Group have formed a partnership to launch a full-service hospitality investment and management platform, starting with a $500 million fund to acquire equity investments as well as debt takeovers of hospitality assets.
Hospitality industry veteran and Torrey Pines Hotel Group CEO Michael J. Slosser, past president of Howard Hughes Hospitality; Nick Chini, managing director of Bainbridge Consulting and Bainbridge Capital; Michael Riady (member of the Riady family, founders of the Lippo Group); and David Bren (of the Irvine Company’s Bren family) are all founders and general partners in the new Bainbridge DXS platform.
According to Bren, the new venture will concentrate on hospitality asset acquisition, management and redevelopment with plans to acquire up to 200 properties over the next 15 years. “The COVID-19 pandemic has decimated the hotel industry with values significantly depressed,” he said. “Our intention is to acquire and manage underperforming yet top-quality hospitality assets—primarily in the United States but also in Europe and Asia—and optimize their financial performance, unlocking their full real estate values.”
The partnership has designed a debt and equity strategy to acquire distressed hospitality assets at a discount, matching these disciplines to a base of capital partners who have extensive experience in commercial real estate. “With this in mind, we are implementing a long-term, contrarian strategy, adapting to evolving market opportunities,” Riady said. “We are acquiring both debt and equity positions in underperforming hotels/resorts as well as shuttered properties, where we can bring a new capital strategy and operating expertise to tackle the challenges of the current and post-COVID business environments.”
The new venture will also pursue management agreements and other joint venture partnerships, deploying capital to renovate and reposition assets as long-term partners. According to Slosser, “With a global team of top executives, we have identified and have targeted some the most iconic hotels in the world—as well as core assets in recognized urban markets—to reposition through restructuring.”
According to Chini, the new venture has well-established networks and relationships with investors, lenders, service providers, developers and owners of real estate assets globally. “Our goal is to do business with well-respected institutions and companies where our aligned financial interests and culture match.”