David Simon, who co-founded the firm in 1999 along with Ethan Kramer, Peter Marino and Steve Siegel, tells GlobeSt.com that the company expects to increase its management assignments and hotel investments in a move that could bring the New Jersey-based business into the national arena. "It's time to be thinking about the next level of growth," says Simon, whose firm manages more than 3,000 rooms in the Eastern US.
The company, established by four former executive officers of Prime Hospitality Corp., already has a proven track record. Its first transaction was a joint venture in 2000 with Olympus Hospitality that resulted in the purchase of the former Suisse Hotel chain.
Within a year, the group converted 19 of the 27 properties into Marriott's Fairfield Inn brand, renovated four hotels into Park Inns by Carlson Hospitality Worldwide, sold another to an independent buyer and divested the remaining three properties. The transaction was voted the "Deal of the Year" at the 2001 UCLA Conference.
The company's tactics paid off, not only in deal recognition, but financially as well.Under the Fairfield flag, the portfolio's gross operating profit increased 35% and revenue per available room rose 25% in the first nine months of 2002, despite the soft economy.
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