FAIRFIELD, NJ-Paramount Hotel Group, an independent hotel management and ownership company based here, has added three new management assignments to its portfolio for hotels acquired by a Lightstone REIT. The company says it expects to add up to a dozen hotel management contracts this year.
The three hotels that have recently come under Paramount’s management were acquired by Lightstone Value Plus, a non-traded REIT. The properties are a SpringHill Suites by Marriott and a Fairfield Inn & Suites by Marriott in West Des Moines, Iowa, and a Courtyard by Marriott in suburban Cleveland, Ohio.
“More hotels are coming to market now and we expect to work closely with The Lightstone Group in the current year to help achieve their growth targets,” said Ethan Kramer, president of Paramount. Paramount expects to add 10 to 12 hotels to its management portfolio in 2013.
“Our 30-plus years of hotel experience are a huge benefit for investors in sourcing and analyzing hotel investment opportunities, some of which have hard-to-identify, unique attributes,” said Kramer in a release. “These properties have intangibles that go beyond repositioning and strong management, often in markets that are overlooked.”
Paramount and its investors/owners seek out both full-service and select-service hotels, usually in secondary and suburban markets that have the “bones” to be premium-branded, the Paramount executive said. “While these properties may not be as ‘sexy’ as a downtown urban hotel, we know that they can generate high returns with prudent risk,” Kramer added. “The key is finding and unlocking the value that others do not see.”
Many hotels currently on the market need significant updating, since upkeep was delayed during the recent recession, he said. “Those properties create both a dilemma and an opportunity. Renovations can be costly and disruptive in the short-term which make these investments appear to be unattractive, but they also provide the opportunity to reposition and rebrand and become market leaders,” Kramer said.
Paramount works with a renovation management company, Hospitality CPM, to achieve better returns as quickly as possible, he said.