This follows Hamister's October acquisition of a four-property portfolio here aggregating 456 rooms for approximately $40 million or $87,719 a key. Its equity partner in both deals is the New York City office of HSBC Capital USA Inc. The four properties are the Cranberry Township Residence Inn by Marriott, the Greentree Hampton Inn by Hilton, the Pittsburgh Airport Hampton Inn by Hilton, and the Cranberry Township Holiday Inn Express by Intercontinental Hotels.
The principal seller of all five properties is Donald Rodgers, a private investor based in Cranberry Township. Anjali Bagat Peterson of the Chicago real estate investment office of Marcus & Millichap represented the seller in the latest negotiation while Hamister spoke for itself.
Williamsville, NY-based Hamister Hospitality was formed in 2004 by Mark Hamister, CEO of the Hamister Group, which is a long-time leading provider of assisted living and health care facilities. Since its formation, the hotel affiliate has acquired 10 properties with an aggregate of 942 rooms. The initial buys were a Fairfield Inn and a Sleep Inn in the Nashville metro area, followed by three Choice branded properties in Tennessee and Kentucky.
Expansion to hospitality, according to Hamister, extends from his company's decision 25 years ago to "begin operating health care facilities like fine five-star hotels. We began emulating the hospitality field, and customer satisfaction shot up significantly." He tells GlobeSt.com the hotel company plans to buy or build two to three more properties in the Pittsburgh area in the next two to four years and buy or build 40 more properties over the next five to eight years.
He estimates that about half will be acquired. "We prefer properties that are 15 years old or less," and the focus is on suburbs east of the Mississippi in regions of one million people or more that have multiple drivers. The chief drivers are "stable business travelers for weekday traffic and a leisure travel segment for weekends," he says. Pittsburgh, he points out, fills the bill with weekend traffic driven by youth sports sponsorship.
Regarding flags, he says Marriott and Hilton top the list for new construction. Those two brands, plus Intercontinental and Choice are primary, "but not exclusive" acquisition candidates. The partnership with HSBC, he adds, makes the ambitious growth plan possible, doubling what Hamister could do on its own in the short time frame.
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