How the Pandemic Made This Investment Firm a Leading U.S. Hotel Player Overnight
Photo Credit: Highgate, owner of properties like the Newbury Boston (pictured), is rapidly becoming one of the largest U.S. hotel owners through pandemic investment opportunities. Highgate
Skift Take
Highgate's mega-hotel portfolio acquisition makes it a top national hotel landlord, and it is likely just the beginning of further pandemic investment opportunities across the entire hospitality industry.
Real estate investment firm Highgate earlier this fall scooped up the biggest known U.S. pandemic-induced distressed hotel deal to date. Highgate bought $2.8 billion in hotel assets from Colony Capital for nearly $68 million and took on $2.7 billion in debt obligations.
The Colony deal is likely just the beginning when it comes to pandemic fire sales within the hotel industry.
“The disruption caused by Covid is unprecedented, and, as a result, there will certainly be a wide swath of opportunities to provide fresh capital and a fresh take on business plans. We constantly push our team to find innovative solutions to reconstructing hotel business plans,” said Mahmood Khimji, co-founder and managing principal at Highgate. “The Colony investment also speaks to the fact that we remain resolutely bullish on the long-term prospects for hospitality and travel.”
The Colony deal, comprised of nearly 23,000 hotel rooms across 197 hotels, is slated to close early next year and w
