Remington Hotels, an independent hotel management company with more than 40 years of experience in the hospitality business and a wholly owned portfolio company of Ashford Inc., has acquired privately held Chesapeake Hospitality, a third-party hotel management company.
The strategic transaction is expected to increase the scale and scope of Remington’s hotel management business, while expanding its geographic footprint to complementary Midwestern markets, including Pittsburgh, Milwaukee, Detroit and St. Louis. Further, the acquisition adds several IHG Hotels & Resorts to its portfolio (including the Hotel Indigo St. Louis, (pictured above), as well as the 877-key Showboat Atlantic City, which will be the largest hotel in Remington’s portfolio. The combined company will operate under the Remington brand and will be focused on leveraging its enhanced scale to pursue profitable growth opportunities, including the continued expansion of hotel management business to third parties. This transaction also diversifies Remington’s client base away from the company’s advised REITs. As a result of the acquisition, Remington’s mix of third-party hotels will increase from approximately 20% to approximately 40%.
“Though the hospitality space has faced massive challenges over the past few years, Remington has remained steadfast in its commitment to being the best hotel manager in the industry,” said Sloan Dean, president/CEO, Remington Hotels. “By melding Chesapeake’s culture and know-how with ours, we believe we are well-positioned to cultivate even stronger relationships with our properties’ owners by providing them with more resources, better economies of scale and a more satisfying guest experience.”
Chris Green, former president/CEO, Chesapeake, and newly appointed divisional president, Remington, said, “I’m so proud that Chesapeake is joining Remington, a company that is known for its stellar results and has made a real cultural shift in the hotel management space. This partnership will be a practice in blending two companies that have operated in different geographical lanes and have a steadfast commitment to doing what is best for their clients and employees. I’m looking forward to taking the service our clients know and love to the next level as we access the resources Remington has to offer.”
“This is a powerful combination of two highly complementary and synergistic businesses, and we are confident this transaction will come as a value-added partnership to our combined third-party client base,” said Monty J. Bennett, chairman/CEO, Ashford. “This is a terrific acquisition for Remington, and underscores Ashford’s commitment to supporting our portfolio companies as they execute on organic and inorganic growth initiatives to create shareholder value.”
With the completion of this acquisition, Remington now manages 121 hotels in 28 states across 25 brands, including 19 independent and boutique properties. The combined company will be headquartered in Dallas, where Remington’s management will oversee day-to-day operations of its entire national portfolio of properties. Upon integration, all former Chesapeake-managed hotels will remain under the same teams to ensure continued delivery of excellent service to owners and guests.