ATLANTA — Partnerships, acquisitions and conversions have been in the mix of activity lately for Raines.
Raines is a hospitality management, development and investment group based in Florence, South Carolina. Its acquisition of HP Hotels in 2023 more than doubled Raines' portfolio from 22 to 49 hotels across the Southeast U.S.
Brands in the portfolio include Hilton, Marriott International, Hyatt Hotels Corp., Choice Hotels International and Wyndham Hotels & Resorts.
Speaking during a video interview at the recent Hunter Hotel Investment Conference, Raines Vice President of Investments Kristen Myers said the opportunities are there to acquire third-party management contracts.
"Whether it be organically or there's a lot going on in the lending environment right now that's forcing the hand of some people to make some changes. We're getting a lot of deal flow that way; but for us our focus is still selective, organic growth. It's a lot of underwriting ... and really looking at the bottom line. Cash flow has been hit hard the past few years, so for us [we're] trying to partner with the right groups location-wise but also brand-wise. We're really looking to push rate to drive to the bottom line," she said.
Raines' investment strategy in the Southeast includes clustering properties by acquiring ones that are near or within the markets where the company already has a presence.
The biggest change in this year's strategy is Raines is partnering with new groups and developers in the market to help them get their properties off the ground, "whether it be co-development, strictly management or just on the investment side," she said.
Previously, Raines was solely investing in deals that only it was developing and managing.
Myers' advice for owners who are looking to deploy capital today is to pay attention to timing.
"The lending environment changes monthly, especially in the Southeast. With us, we're still having a lot of luck with our regional, local lenders, and their buckets change I would say every few months," she added. "So timing's important, it depends on how quickly you can get the project started and when that project opens."
Throughout this year, Raines will continue focusing on selective growth, both on the management and development side, and fine-tuning some partnership opportunities.
For more insight on Raines' investment strategy, watch the video with Kristen Myers above.