Stonebridge Companies is a manager and operator of over 11,500 hotel rooms in 13 states
TowerBrook and Related Fund Management partner with Stonebridge to seize growth opportunities in favorable market
NEW YORK & LONDON–(BUSINESS WIRE)–TowerBrook Capital Partners LP (“TowerBrook”), an international investment management firm, and Related Fund Management (“RFM”), a real estate investment management firm, announced the completion of their investment in Stonebridge Companies (“Stonebridge” or the “Company”). The transaction was financed by a majority investment from TowerBrook, with a significant minority investment from RFM and a substantial rolling investment from Navin Dimond, founder and CEO of Stonebridge. Along with this investment, TowerBrook, RFM and Mr. Dimond have also committed significant capital to establish a real estate investment platform to fund further hotel acquisitions.
Based in Denver, Colorado and founded by Navin Dimond in 1991, Stonebridge manages and operates more than 11,500 hotel rooms (67 hotels) in 13 states in the Midwest, Northeast, South and West Coast markets. The Company provides hotel management services, hotel investment opportunities and development services across its portfolio. The company’s mission to deliver Distinguished Hospitality™ to guests, team members and partners has allowed it to grow its hotel portfolio across multiple brands of full service, extended stay, select service and mid-range. The company also holds franchise licenses with Hilton Worldwide, Marriott International, Hyatt, InterContinental Hotel Group and Wyndham, as well as independent hotels.
Michael Recht, Managing Director of TowerBrook, said: “Stonebridge is a strong operator that has demonstrated a track record of consistent growth over several decades. Navin is a visionary who has built a unique platform sought after by hoteliers and investors. We are excited to partner with Navin and the company to continue to grow and scale the business. »
Mr. Dimond added: “This transaction and partnership with TowerBrook and RFM will allow Stonebridge to grow our current portfolio, further expand our geographic footprint and continue to refine our operations. TowerBrook and RFM are ideal partners to help Stonebridge achieve its next phase of growth.
Michael Winston, Managing Director of Related Fund Management, added: “We were attracted to Stonebridge for its strong operational prowess and diverse portfolio of managed properties across well-known brands, with an emphasis on comprehensive and selective service in geographically desirable areas. With hotel occupancy rates expected to return to pre-COVID levels over the next 12-18 months, Stonebridge’s current managed portfolio and our new property investment platform will be well positioned to benefit from an extended period of travel from consumption, business and group. recovery.”
“Given Stonebridge’s strong hotel investment history and established platform, TowerBrook is pleased to commit additional capital to pursue investment opportunities in the hotel real estate market. The new investment vehicle will seek to develop strategic capital partnerships alongside our captive operating solution, with the goal of investing over $1 billion,” said Luke Doramus, Managing Director of TowerBrook.
As part of the transaction, Mr. Dimond will continue in his role as CEO. Jim Abrahamson, a hospitality industry veteran who was formerly CEO of Interstate Hotels & Resorts and who is currently independent chairman of the board of directors of VICI Properties, Inc. and director of the board of other travel-related companies, to hospitality and services, was appointed non-executive Chairman of the Company’s Board of Directors.
Stonebridge Companies was advised by Bryan Cave Leighton Paisner LLP. TowerBrook was advised by Sidley Austin LLP. RFM was advised by Sullivan & Cromwell LLP. Financial terms of the transaction were not disclosed.
TowerBrook Capital Partners is a purpose-driven, transatlantic investment firm that strives to grow and improve large and midsize businesses by partnering with management teams and employees to create great businesses that have a positive impact on society. Since its inception in 2001, TowerBrook has raised a total of $18.7 billion and invested in more than 85 companies on both sides of the Atlantic. TowerBrook operates as a single, unified team of experienced investment professionals focused on creating value in complex situations. The firm’s highly synergistic family of funds make controlled and uncontrolled investments in the capital structure, providing capital and resources to transform the capabilities and prospects of its portfolio companies.
As a disciplined investor with a commitment to fundamental value, TowerBrook seeks to provide investors with superior risk-adjusted returns on a consistent and responsible basis. TowerBrook is the first mainstream private equity firm to be certified as a B Corporation. The B Corporation certification is administered by the non-profit organization B Lab and is awarded to companies that demonstrate leadership in their commitment to environmental, social and governance (ESG) standards and responsible business practices.
For more information, please visit www.towerbrook.com
About Related Fund Management
Related Fund Management is a multi-strategy real estate investment manager currently managing approximately $10.3 billion in combined funds and separately managed accounts on behalf of public and private pension plans, endowments, family offices and sovereign wealth funds (estimate as of 09/30/21). RFM has a team of over 40 professionals headquartered in New York City with additional offices in Dallas, Los Angeles and South Florida. Since its creation in 2010, RFM has invested in all parts of the capital and in all the main real estate sectors.
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Related fund management: