CHICAGO & NEW YORK–(BUSINESS WIRE)–Hotel management and development company First Hospitality and The Georgetown Company, a leading developer and owner of commercial, retail and mixed-use properties nationwide, announce a new platform targeting $1 billion of investment in upscale and luxury hospitality properties nationwide.
“We know that hospitality assets will inevitably see a strong rebound in the years following the pandemic, ultimately creating significant value for investors,” says Adam Flatto, CEO of The Georgetown Company. “First Hospitality has a stellar reputation and we are honored to partner with them as we launch this venture.”
While the industry has begun to recover from the pandemic, Georgetown and First Hospitality believe there is significant long-term growth potential for the industry moving into 2022 and beyond. In partnership with First Hospitality, Georgetown and its longstanding capital partners will direct $1 billion towards hotel investments and properties in areas throughout the U.S.
The Georgetown Company will also take a significant ownership interest in First Hospitality alongside Stephen L. Schwartz and the Schwartz family. Schwartz, First Hospitality’s founder, will continue as Chairman, and his family will maintain long term strategic control of the 35-year-old company. First Hospitality’s existing leadership team, headed by Duncan, will continue to run day-to-day operations of the company.
“We’re honored to formalize our partnership with The Georgetown Company,” says David Duncan, president & CEO of First Hospitality. “We believe strongly in the long-term outlook for high-quality lodging assets, and Georgetown is an agile and highly successful investor who shares our values and strategic investment goals.”
The new venture will benefit from both Georgetown’s experience and deep relationships to source and identify leading hospitality properties along with First Hospitality’s best in class hotel management expertise. By aligning ownership and operations into a single investment vehicle, the new partnership between Georgetown and First Hospitality is well positioned to maximize value in every property and transaction over the long term.
The new platform is led by Duncan and Michael Fishbin, who joined Georgetown as managing director and head of hospitality in February 2020 to grow the company’s hotel development and acquisition portfolio prior to the onset of the pandemic. With 35 years in the industry, including serving as EY’s Global and Americas Hospitality Leader for more than 12 years, Fishbin is a nationally renowned leader in hospitality who has served as an advisor on more than $30 billion of hospitality transactions over the course of his career.
“We have been planning on growing our hospitality portfolio even before COVID because there is significant long-term value in these assets,” said Fishbin. “The opportunity now is even greater than before, especially by combining our own capabilities with the hotel management expertise of First Hospitality.”
“We have maintained a steadfast focus on the long-term growth and success of First Hospitality for over three decades,” says Stephen L. Schwartz, First Hospitality Chairman. “Our family is excited to partner with The Georgetown Company to continue acquiring exciting assets and grow our management portfolio nationwide.”
First Hospitality will also continue to expand its third-party management business.
For more information about First Hospitality, go to firsthospitality.com. For more information about The Georgetown Company, go to georgetownco.com.
About The Georgetown Company
The Georgetown Company develops and invests in residential, commercial and mixed-use properties throughout the United States, with a focus on emerging neighborhoods in best-of-class locations. Led by President and CEO Adam Flatto and founded in 1978, Georgetown is a privately-held diversified real estate development company that is recognized for attracting long-term partners and creating popular destinations after carefully selecting properties and diligently nurturing them through all stages of development and ongoing operations. Georgetown is headquartered in New York City and currently owns and is developing properties in New York City, Los Angeles, Chicago, Columbus, OH, Boston, and Washington, DC.
About First Hospitality
First Hospitality is a nationally recognized hospitality investment, development, and management company. Founded by Stephen L. Schwartz in 1985—the company operates and owns properties throughout the United States with a portfolio of over 50 properties across 21 brands. First Hospitality credits its success to its award-winning, people-focused culture, which delivers outstanding guest experiences, high associate engagement, and superior financial performance. Frequently recognized as industry leaders and sought after by investors and guests alike, the company ranks among top employers and operates acclaimed hotels and restaurants, including multiple AAA Four Diamond properties. First Hospitality redefines industry standards; its vertically integrated platform provides immersive hotel and food and beverage experiences and world-class investment, development, and third-party management services. For more information, visit www.firsthospitality.com.
