Charlotte-based Pharos Hospitality has announced the creation of a joint venture with New York-based CB Alliance focused on developing and acquiring hotels in growing urban markets. The entity will be known as Pharos CB Hospitality.
"This collaboration brings together two seasoned teams that will focus on high-value properties in growth markets that will generate attractive returns for our investors," said J. Edward "Buddy" Watson, CEO and founder of Pharos Hospitality. "Pharos' optimized hotel model, which lowers ownership and operating costs while aligning investors' interests, and CB Alliance's capital generation capabilities and global business expertise are a winning combination."
"We spent a great deal of time searching for the right team to be our capital generation partner. CB Alliance fits all of our criteria," added Watson.
Watson headed the development and operations of one of the first urban Marriott Courtyard hotels in the U.S. — the Marriott Courtyard in center city Charlotte, a 15-story, 181-room hotel built above a 700-car parking deck with a ground floor lobby and meeting space. Other developments include a Marriott Courtyard on land owned by Princeton University in Princeton Forrestal Center; a $60-million public-private 400-room full-service hotel and city conference center in Norfolk, Virginia; and a public-private waterfront full-service hotel, retail center, parking deck and marina in Hampton, Va.
CB Alliance is a global equity investor, and M&A advisory firm. Their investment portfolio consists of opportunities in the real estate, high-tech, and information analytics sectors. The principals in CB have been identifying, originating and leading value-add real estate investment opportunities in multiple commercial and residential sectors, for both institutional and high net worth individual investors, for over 30 years.
Doron Cohen, chairman and founder of CB Alliance, described the Pharos CB Hospitality venture as "an exciting opportunity for our teams to work together to bring premium returns to investors." Noting "the market timing is excellent," Cohen cited low interest rates, aging hotel inventory and the recovery of the U.S. economy as factors that have improved the market for hotels.
Pharos Hospitality, LLC is an institutional-grade hotelier headquartered in Charlotte, North Carolina that acquires, develops, owns, operates and monetizes upper upscale hotels and select upscale hotels.