Aimbridge Hospitality has acquired Houston-based Terrapin Hospitality’s management portfolio of 71 hotels across the U.S.
The deal adds 8,100 rooms in 21 states in the upper-midscale and upscale segments to Aimbridge’s Select Service Division, according to a news release. The hotels operate under all major brand companies.
Plano, Texas-based Aimbridge will build on its existing relationship with Waramaug Hospitality and Terrapin Investments, two hotel owners in the Terrapin Hospitality portfolio. Aimbridge will increase the number of hotels it manages for Waramaug and Terrapin Investments from 12 to 42. The companies have entered into a long-term strategic development relationship they expect will generate incremental unit growth as early as the first half of this year.
Aimbridge is the world's largest third-party hotel management company.
Terrapin acquired K Partners, a San Antonio-based third-party management company, in September 2021, growing its portfolio from 35 to 70 hotels across 13 states. Earlier that year, Waramaug founders Paul Nussbaum and Leslie Ng became significant investors in Terrapin Hospitality, which had acquired a five-hotel portfolio from Waramaug in February 2021.
“We are pleased to welcome these new properties and owners into the Aimbridge Hospitality family,” said Mike Deitemeyer, president and CEO of Aimbridge, in the news release. “We are already applying our expertise and operating acumen to the Terrapin Hospitality portfolio, and we look forward to a long-term relationship where we can generate meaningful results and chart a path to future success."
“The strategic relationship with Aimbridge will allow Terrapin’s properties to benefit from the scale and experience of the top management company in the industry,” said Tony Sherman, Terrapin Hospitality founder and CEO.
“It was critical we found the right partner for my portfolio and my clients,” he added.
Sherman will continue to serve as an operating partner to Aimbridge.
In a video interview at the Americas Lodging Investment Summit, Aimbridge’s Deitemeyer shared his thoughts on consolidation among third-party hotel management companies.
In recent years, Aimbridge has been actively working with hotel owner-operators interested in divesting their management operators to focus solely on hotel development and transactions. The most notable example was its acquisition of NewcrestImage's management operations.