Hotel owner, operator and developer Hotel Equities (HE) has entered into a strategic partnership with Arkansas-based Pinnacle Hotel Group.
Pinnacle’s current hotel portfolio and its development pipeline—which includes properties from Marriott, Hilton and IHG—will be integrated into Hotel Equities’ management platform effective May 1. This partnership builds on an existing relationship, as HE already manages the recently opened AC Hotel by Marriott Kansas City Downtown, of which Pinnacle is an owner.
“We have been watching the progression of Pinnacle for some time now in the Southern region of Arkansas,” Joe Reardon, chief development officer, HE, told Hotel Business. “We have always been impressed with how they have grown their portfolio and, more importantly, their construction and development side of the business. They have a unique ability of finding the right product with acquisitions and ground-up development as they have built an incredible team from the development and construction side of the business. We think they make us better in the space along with our other strategic partners. We also think there are opportunities for us to work together and assist them with future growth in this area with strategic capital opportunities.”
Pinnacle Hotel Group, led by principals Chet Patel, Rocky Govind, Shawn Govind and Nayan Nagin, has developed and operated high-performing hotels in key markets. As the company has continued to grow, Pinnacle recognized the need for a management partner with the scale, resources and expertise to support its expanding portfolio while also creating greater career opportunities for its team members.
“As our pipeline for future developments grows, we believe now is the time that we need to look into the future and position ourselves with a partner that can supplement our properties with the resources that are critical in the competitive landscape of our industry,” Patel told Hotel Business. “At Pinnacle, our desire has been to bring value to our partners and investors. And we believe at the helm of every property, our GMs are the key to our portfolio’s success. In order for our GMs to perform at optimal levels, it’s our obligation to provide them with the resources and support that they need on a daily basis. Hotel Equities has had the vision to invest continuously in cutting-edge technology and management training. This is the driving force that excites us to partner with Hotel Equities.”
The transition process began with an initial town hall meeting that occurred recently, providing associates with an “open and transparent” forum for Q&A and dialogue. According to HE, this important first step is critical to create a positive first impression that sets the stage for long-term success and to ensure clear communication and alignment before the official transition takes place.
“Our team is honored to welcome Pinnacle to the HE family,” said Brad Rahinsky, president/CEO, HE. “We’ve had the privilege of witnessing Pinnacle’s leadership firsthand through our collaborations over recent years, and their track record speaks for itself. With a foundation of trust, shared values and a unified vision for long-term success, we look forward to strengthening this relationship and achieving great things together.”
Al Smith, president, hotel operations, HE, reinforced his company’s commitment to sustaining excellence across Pinnacle’s portfolio.
“We take great pride in exceeding expectations—both for our guests and for our ownership partners. We are eager to bring our support, proven strategies and added resources to Pinnacle’s hotels, ensuring they achieve peak performance and deliver exceptional hospitality.”
Reardon added, “All of these things are the right ingredients for a good strategic partnership, but quite honestly, it started the senior leadership connections and the people connections. We just absolutely felt like doing life and doing business with the Pinnacle senior leaders was the biggest attraction for us to form a strategic partnership together. We look forward to the future together.”
“This partnership is another example of HE growing smart with the right partners,” he noted. “We are selective about who we align with and Pinnacle’s strong acumen in developing hotels and their vision for the future is representative of the type of engaged, forward-thinking owner partners we seek. Together, we will drive sustainable growth and long-term success.”
