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| Ethan Kramer |
FAIRFIELD, N.J., Jan. 28, 2013—Paramount Hotel Group, an
independent hotel management and ownership company, today announced the launch
of a new expansion initiative with the addition of three new management
contracts.
Company officials said that the growth is being fueled by
relationships with a select group of sophisticated hotel real estate capital
partners who seek to acquire hotels with significant upside potential in this
phase of the hotel real estate cycle.
Paramount expects to add 10 to 12 hotels to its management portfolio in
2013.
The three hotels recently were acquired by Lightstone Value
Plus Real Estate Investment Trust, Inc., a non-traded REIT. The properties include a SpringHill
Suites by Marriott and Fairfield Inn & Suites by Marriott
located in West Des Moines, Iowa, and a Courtyard by Marriott in
suburban Cleveland, Ohio.
“More hotels are coming to market now and we expect to work
closely with The Lightstone Group in the current year to help achieve their
growth targets,” said Ethan Kramer, President of Paramount.
“Our 30-plus years
of hotel experience are a huge benefit for investors in sourcing and analyzing
hotel investment opportunities, some of which have hard-to-identify, unique
attributes. These properties have
intangibles that go beyond repositioning and strong management, often in
markets that are overlooked.”
Paramount and its investors/owners seek full-service and
select-service hotels, primarily in secondary and suburban markets that have
the “bones” to be premium-branded.
“While these properties may not be as ‘sexy’ as a downtown urban hotel,
we know that they can generate high returns with prudent risk,” Kramer
added. “The key is finding and
unlocking the value that others do not see.”
Kramer noted that many hotels currently on the market have
significant PIP requirements because upgrades were pushed back well beyond the
normal cycle during the recent recession.
“Those properties create both a dilemma and an opportunity. Renovations can be costly and disruptive in
the short-term which make these investments appear to be unattractive, but they
also provide the opportunity to reposition and rebrand and become market
leaders.
"With strategic investment,
smart positioning and strong management, those hotels can generate superior
returns. We are fortunate to work with Hospitality CPM, a renovation management
company, in quickly understanding the costs and opportunities of renovation and
repositioning.”
For a complete
copy of the company’s news release, please contact:
Jerry Daly/Lauralee Dobbins
(703) 435-6293
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