(Corrected on Feb. 9 to update the headquarters of Palisociety and mention of Arrive Hotels & Restaurants locations in the second paragraph.)

Palisociety's January acquisition of Arrive Hotels & Restaurants adds a younger feel to its existing portfolio, and opens it up to new markets and segments.

Los Angeles-based luxury boutique hotel brand Palisociety picked up Arrive properties in markets such as Palm Springs and Memphis, which are exciting to the company, President Jorgan von Stiening said.

Other new markets, such as Wilmington, North Carolina, weren't on Palisociety's radar, he said.

He noted there are many similarities between Arrive and Palisociety, along with some key differences, that made the acquisition sensible.

Stiening said Palisociety is a more grown-up brand he described as "casually sophisticated" while Arrive has a more youthful energy.

"It's more fun and energetic and it's more approachable," he said. "For us, that was a piece that fit into our existing program that we weren't really tackling. It was a really great opportunity for us to take advantage of."

The pandemic has thrown the hotel industry into a "major period of market shake-up," which is "when the aptitude hits," Stiening said.

"Over the last 13 years at this point, we’ve developed a track record and a level of experience that I think sets us apart from a lot of the other players in the space," he said. "And quite frankly, it makes us really sought-after by partners, owners and other hotel companies."

Palisociety's expertise in its space made it a good time to acquire Arrive, he said.

"Especially in the pandemic, it’s really all about scale and maximizing efficiency," he said. "We had the infrastructure already established to take on this portfolio pretty much immediately."

The company also had the skill set and the right people to "not just operate the brand and the properties but to ... tell the Arrive story and showcase the brand in a way that is really going to resonate with people."

Palisociety's portfolio focuses on neighborhood hotels with fewer than 100 rooms, and there's opportunities to move this model to the luxury space and to "resort-esque" hotels, Stiening said.

The company is in the process of moving into luxury with the opening of Palihouse Santa Barbara on March 1, which will make it Palisociety's "highest-positioned product," he said.

"That’s going to be an interesting foray into a more luxury product type," he said. "The market is going to command that, especially for small-key hotels."

"Resort-esque" doesn't necessary mean a beach property, he said, "but a compound where people can come and stay and enjoy a lot of different facets and entities other than just needing a hotel room for a city adventure and staying in for work or exploring."

Arrive has a few properties like this in Palm Springs and Phoenix, which "have large, great pool areas."

"They have really awesome and well-programmed food and beverage; and we’ve historically only had one property that’s had a pool [and] has kind of … put together that resort-esque atmosphere," he said.