HREC, Neptune Merge for Market Share

DENVER-Neptune Hospitality Advisors of San Diego has merged with Denver-headquartered Hospitality Real Estate Counselors or HREC, adding a strong capital markets group to HREC’s expertise in lodging and gaming property sales, mortgage brokerage, equity/JV structuring, market research, appraisal, asset management and litigation support. HREC chief executive and founder Mike Cahill tells GlobeSt.com that the combined hospitality investment banking and brokerage services firm will operate under the existing HREC Investment Advisors banner and that Neptune founder Mike Armstrong is now an equal partner in the firm.

Neptune has offices in San Diego and Dallas. HREC has offices in Denver, Los Angeles, Chicago, New York, Tampa, Boca Raton and Memphis. Armstrong, who prior to founding Neptune in 2001 was senior managing director of the hospitality practice at Insignia/ESG Hotel Partners, says the merger combines firms with complementary services and locations, “which should lead to more opportunities in the market.”

“Even though hotel lending is slow right now, Neptune has a tremendous practice as mortgage brokers,” Cahill says. “Adding Neptune enhances our ability to find debt for clients in a tough market,” Cahill says. “In addition, when things turn around it enhances our capital markets and mortgage brokerage business.”