Hotel management and development company First Hospitality agreed to buy Hostmark Hospitality Group.
Through the deal, Chicago-based First Hospitality will take over a majority of Schaumburg, Illinois-based Hostmark’s hotel management agreements, growing First Hospitality’s portfolio to more than 70 hotels across the U.S., according to a news release. The deal is expected to close early in the fourth quarter subject to third-party approvals.
The acquisition will add 17 hotels with more than 10,000 rooms from Hostmark to First Hospitality. It will also grow First Hospitality’s geographic footprint to markets in California, Texas and Florida while adding to its existing presence in Midwestern cities.
In the first half of 2020, Hostmark bought RAR Hospitality, a hotel management company with 20 hotels in its portfolio.
The alignment with Hostmark fits well with First Hospitality’s strategy of being the operator of choice in each of its markets, said David Duncan, president and CEO of First Hospitality, in the release.
“This acquisition positions us for further accelerated growth in key markets throughout the U.S. and builds deeper relationships with hotel ownership groups that prioritize superior financial performance, enriched guest experiences, and increased associate satisfaction,” he said.
Hostmark President and CEO Jerry Cataldo, who will join First Hospitality’s team, said: “This next chapter in our story aligns us with a team that shares our values, our passion, and our dedication to delivering outstanding hospitality management.”