Hotel management and development company First Hospitality and The Georgetown Company, a developer and owner of commercial, retail and mixed-use properties nationwide, announce a new platform targeting $1 billion of investment in upscale and luxury hospitality properties nationwide.
While the industry has begun to recover from the pandemic, Georgetown and First Hospitality predict “significant long-term growth potential” for the industry moving into 2022 and beyond. In partnership with First Hospitality, Georgetown and its longstanding capital partners will direct $1 billion towards hotel investments and properties in areas throughout the U.S.
The Georgetown Company will also take a significant ownership interest in First Hospitality alongside Stephen L. Schwartz and the Schwartz family. Schwartz, First Hospitality’s founder, will continue as chairman, and his family will maintain long-term strategic control of the 35-year-old company. First Hospitality’s existing leadership team, headed by President & CEO David Duncan, will continue to run day-to-day operations of the company.
“We know that hospitality assets will inevitably see a strong rebound in the years following the pandemic, ultimately creating significant value for investors,” said Adam Flatto, CEO of The Georgetown Company.
“We’re honored to formalize our partnership with The Georgetown Company,” said Duncan. “We believe strongly in the long-term outlook for high-quality lodging assets, and Georgetown is an agile and highly successful investor who shares our values and strategic investment goals.”
Leadership
The new platform is led by Duncan and Michael Fishbin, who joined Georgetown as managing director and head of hospitality in February 2020 to grow the company’s hotel development and acquisition portfolio prior to the onset of the pandemic. Fishbin has worked in the industry for 35 years, including serving as EY’s Global and Americas Hospitality Leader for more than 12 years. He also has served as an advisor on more than $30 billion of hospitality transactions over the course of his career.
“We have been planning on growing our hospitality portfolio even before COVID because there is significant long-term value in these assets,” said Fishbin. “The opportunity now is even greater than before, especially by combining our own capabilities with the hotel management expertise of First Hospitality.”
“We have maintained a steadfast focus on the long-term growth and success of First Hospitality for over three decades,” said Stephen L. Schwartz, First Hospitality chairman. “Our family is excited to partner with The Georgetown Company to continue acquiring exciting assets and grow our management portfolio nationwide.”
First Hospitality will also continue to expand its third-party management business.