PHOENIX, AZ---Barcelona Hotel Group, a financial investment group, and Dow Hotel Company, LLC (DHC), a hotel ownership, investment and management company announced that they have signed a letter of intent to acquire and operate hotels.
Under terms of the agreement, Dow will become a Strategic Alliance Member (SAM) and co-invest with affiliates of Barcelona to acquire first-class, full-service hotels over the next 12-18 months.
Barcelona REIT One (BR-1), a private real estate investment trust, or an affiliate of BR-1, will acquire and own the properties.
The closed-end fund, managed by Barcelona, expects to acquire up to $450 million in hotel assets. BR-1 is the first in a planned series of Barcelona-administered hotel investment funds.
As a SAM, Dow will invest in BR-1, along with institutional investors. Dow will be responsible for sourcing acquisition candidates and will operate as a third-party manager for all properties it presents and that are acquired.
Also as part of the agreement, Murray Dow, (top right photo) president, Dow Hotel Company, has been named to the Board of Directors of Barcelona Hotel Group.
“We believe that the next several years will create exceptional opportunities to acquire hotels, reposition them and take advantage of an economic upswing,” said Richard Harkin, president of Barcelona Hotel Group.
“The industry is in the worst downturn in operating results in more than a generation. Hotel values have declined and hundreds of properties are in default.
"While there are other acquisition funds formed or forming, we believe that co-investing with a proven, well-regarded independent management company like Dow will more closely align the owner and operator and allow us to take greater advantage of the opportunities that lie ahead in the hotel industry.”
Barcelona Hotel Group Contact: Dick Harkins, Phone: 480-951-4135, harkins@barcelonahotelgroup.com
Dow Hotel Company Contact: Jerry Daly, Chris Daly Dick Harkins, Phone: (703) 435-6293
jerry@dalygray.com
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