Viceroy Lodge Group CEO Invoice Walshe at a Bisnow function in January 2018.
Highgate, the fourth-largest hotel administration company in the U.S., is upping its stake in the luxury way of living marketplace with a offer to acquire Viceroy Lodges & Resorts.
New York-primarily based Highgate, with $20B of assets underneath management, entered into a arrangement to buy Los Angeles-dependent Viceroy for an undisclosed sum, the business announced Thursday. Viceroy, which launched in 2000 with the Viceroy Santa Monica, has since built a chain of luxury-branded accommodations under the monikers of the Icon Collection, Life style Sequence and Urban Retreats throughout the world, which include inns in places like Washington, D.C., Chicago, San Francisco, Mexico’s Riviera Maya and Serbia.
The firm plans to open Viceroy at Ombria Vacation resort Algarve in Portugal following yr and Viceroy Bocas Del Toro Panama in 2024.
“This offer will speed up our momentum, and solidify our place as the foremost fashionable luxury life-style brand in our place,” Viceroy CEO Bill Walshe reported in a statement.
Highgate principal Richard Russo stated the firm intends to increase “brand-accretive hotels” to Viceroy’s portfolio relocating ahead. Highgate owns or manages more than 500 resorts in the U.S., Europe, Latin America and the Caribbean, encompassing 84,000 rooms.
“Imparting the advantages of Highgate’s scale, we will be ready to give significant incremental worth to associates, company, proprietors and associates,” Russo reported in the launch.
Highgate has been seeking to modify its portfolio to incorporate much more luxurious and way of life-branded resorts due to the fact previous calendar year. In November, Highgate and associate Cerberus Cash Administration offered an 80% stake in 89 find-service and extended-remain hotels, which includes brand names operate by Marriott and Hilton, at a transaction valued at a lot more than $1B to Flynn Homes and the investment fund Varde Partners.
The Viceroy deal comes as world luxurious lodges are anticipated to see a continued surge in revenues. Valued at more than $90B in 2021, the world wide luxurious lodge current market is projected to mature to $238.4B by 2030 driven by rising disposable incomes, very low-price airline service and the level of popularity of the “weekend tradition,” in accordance to an Oct report by the industry investigation firm Spherical Insights & Consulting.
“The increase in shelling out electrical power and the model of residing are two of the most vital things driving people today to luxury resorts,” Spherical Insights said in the report. “Travelers are increasingly opting for a luxurious life style all over their vacations or holiday seasons.”