Richfield Hospitality Lays Out Aggressive Expansion Strategy

DENVER, CO, Feb.  12, 2010—Richfield Hospitality, a leading hotel management company, today laid out a new aggressive growth strategy that will broaden its core, third party-management business.

In addition, Richfield, along with its parent company, City Development Limited, said that it has significant capital to deploy, ranging from structured finance to joint ventures and direct acquisitions.

“In a cash-starved environment like today, we can provide up to 25 percent sponsorship equity for acquisitions and joint ventures with either existing owners or with capital partners seeking acquisitions,” said Greg Mount, (top right photo) Richfield Hospitality president.

“Third-party management will remain our core business, and our strategy, while aggressive, is to grow on a deliberate, planned basis. We are increasing our management bench strength to handle our future growth, and continue to attract great talent to our team. In addition, we have realigned our corporate services to become a field support center, rather than be bureaucratic red tape.”

As part of that support effort, the company announced plans to expand the role of its Sceptre Hospitality Resources division.

“The ability to deliver top-line revenues through sales and channel management is the key to creating optimum success as the hotel economy begins to rebound. Our corporate realignment ensures each property we operate receives enhanced revenue management supported with interactive marketing," says Mount.

Richfield has formed two operating divisions to provide specialized expertise to various types of hotels: a full-service division that will focus on three- to five-star, branded and boutique hotels and a select-service division that will concentrate on premium-branded properties.

“We will work closely with our contacts in the industry to source contracts and acquisition candidates,” Mount said. “Our goal is to more than triple our size over the next five years from our current portfolio of 20 managed hotels.

“We are aided by an impressive operating track record,” he said. “In 2009, 95 percent of our hotels posted higher year-over-year GOP gains. Our goal is to maintain a market-share RevPAR index premium for all of our properties in line with ownership’s objectives.”

The company will focus its third-party management and acquisition activity on major urban and top suburban markets in the U.S., Caribbean and Canada.

“We have the infrastructure in place to take over single assets or large portfolios on short notice,” Mount said.

Contact: Jerry Daly or Chris Daly, (703) 435-6293