TowerBrook, RFM invest in Stonebridge

TowerBrook Capital Partners LP, an international investment management firm, and Related Fund Management (RFM), a real estate investment management firm, have completed their investment in Stonebridge Companies. The transaction was funded through a majority investment from TowerBrook, with a significant minority investment from RFM and a substantial rollover investment from Navin Dimond, founder/CEO, Stonebridge. In conjunction with the investment, TowerBrook, RFM and Dimond have also committed significant capital to establish a real estate investment platform to fund new hotel acquisitions.

Based in Denver, Stonebridge operates more than 11,500 hotel rooms (67 hotels) across 13 states in Midwest, Northeast, South and West Coast markets (including Moxy Seattle Downtown, shown above). The company provides hotel management services, hotel investment opportunities and development services across its portfolio. Its mission to deliver “Distinguished Hospitality” to guests, team members and partners has allowed it to grow its portfolio of hotels across multiple full-service, extended-stay, select-service and midscale hotel brands, the company reports. It also holds franchise licenses with Hilton, Marriott International, Hyatt, IHG Hotels & Resorts and Wyndham, as well as supports independent hotels.

“Stonebridge is a strong operator that has demonstrated a consistent history of growth over several decades,” ​​said Michael Recht, managing director, TowerBrook. “Navin is a visionary who has built a unique platform that is sought after by hotel owners and investors. We are excited to partner with Navin and the company to continue to grow and scale the business.”

Dimond added, “This transaction and partnership with TowerBrook and RFM will allow Stonebridge to grow our current portfolio, further expand our geographic footprint and continue to refine our operations. TowerBrook and RFM are ideal partners to help Stonebridge achieve its next phase of growth.”

Michael Winston, managing director, RFM, added, “We were attracted to Stonebridge for its strong operational prowess and diversified portfolio of managed properties across well-known brands with a focus on full- and select-service in geographically desirable areas. With hotel occupancy rates expected to return to pre-COVID levels in the next 12-18 months, Stonebridge’s current managed portfolio and our new real estate investment platform will be well-positioned to benefit from a prolonged period of consumer, business and group travel recovery.”

Luke Doramus, managing director, TowerBrook, said, “Given Stonebridge’s strong history of investing in hotels and its established platform, TowerBrook is excited to commit additional capital to pursue investment opportunities in the hotel real estate market. The new investment vehicle will seek to develop strategic capital partnerships alongside our captive operating solution, with the objective of investing [more than] $1 billion.”

As a part of the transaction, Dimond will continue his role as CEO. Jim Abrahamson, a hotel industry veteran who previously served as the CEO of Interstate Hotels & Resorts and currently serves as independent chair of the board of VICI Properties Inc. and as a board director of other travel, hospitality and service-related companies, has been named as non-executive chairman of the board for the company.

Stonebridge was advised by Bryan Cave Leighton Paisner LLP. TowerBrook was advised by Sidley Austin LLP. RFM was advised by Sullivan & Cromwell LLP. Financial terms of the transaction were not disclosed.