JV Goes on the Hunt for $400M in Hotels

WASHINGTON, DC-Hotel management company Interstate Hotels & Resorts has joined forces with asset management firm Northridge Capital Inc. to create a new hospitality fund with the goal of snapping up as much as $400 million in hotel properties around the country. The companies, both based in the Nation’s Capital, will contribute equity to the fund, while the remaining monies will derive from secured debt. Interstate is bringing $5 million to the table, while Northridge is contributing $45 million of the equity.

The two companies are expected to complement one another in their acquisition endeavors. “We know that Interstate will bring management depth and expertise, proven operating systems and marketing programs, and excellent cost benefits and synergies due to their size and national distribution,” says Northridge president David Jackson. “We believe that the hospitality sector is poised to recover as the economy rebounds, and, therefore, this is an opportune time to acquire hotel real estate.” Interstate president and COO John Emery adds, “We are beginning to see some positive movement in hotel real estate pricing and feel that properties are starting to become more attractively priced.”