Richfield Hospitality and Shelbourne Falcon Investors Complete Acquisition of Renaissance Syracuse Hotel

SYRACUSE, NY/DENVER, CO—Richfield Hospitality, a leading hotel management company, has completed the acquisition of the 279-room/suite Renaissance Syracuse Hotel (top left photo) in a 50-50 joint venture with Shelbourne Falcon Investors for an undisclosed amount.

The complex transaction involved acquiring the hotel’s loan and negotiating a deed in lieu of foreclosure exchange with the owner. Richfield will operate the hotel.

The hotel will convert to the Crowne Plaza brand in mid-August and begin a $5 million renovation in September that includes upgrading all guest rooms and public spaces, as well as enhancements to the exterior. The renovation will occur in phases to minimize potential guest disruptions.

Mark Zimmerman, a 30-year hotel veteran, has joined the hotel as general manager. Previously, he was general manager at another Richfield property in Albany.

 His career includes more than 17 years with Marriott International, including sales and marketing and operations, where he won awards for operating excellence. He is a member of the Advisory Boards for SUNY Delhi University and Schenectady Community College.

“Upon conversion to the Syracuse Crowne Plaza, this well located, newly renovated property will be well positioned to quickly gain market share,” said Greg Mount,  (middle right photo)Richfield Hospitality president.

“This is our first acquisition under our new growth strategy focused on adding hotels to our portfolio as owners/joint venture partners and through third-party management. We also have added third-party and asset management assignments.

"We have seen an increase in acquisition opportunities to our already robust pipeline since the first of July. We continue to focus on hotels and resorts in the U.S., Canada and the Caribbean.”

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

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