NASHVILLE, Tennessee — The deals and demand environment both present pressing challenges for hotel investors, but Highgate's Ankur Randev said he's optimistic based on recent deals the company has been able to close.
Randev, who is principal for the New York-based hotel ownership and management platform, said Highgate's deals to acquire Viceroy Hotels & Resort and a portfolio of hotels in Portugal have driven growth in a less-than-ideal environment.
Highgate announced a deal to purchase the luxury hotel brand in December. Highgate closed on Viceroy in the first quarter, and Randev praised it as "an incredible customer-facing brand."
"We're very pleased with how we have come out right off the bat in terms of performance and how wonderful that team is in terms of the brand they've created," Randev said.
Highgate's purchase of 18 hotels in Portugal included properties in Algarve, Lisbon and Porto, among others.
More serious challenges still loom, including a transactions environment where hotel deals are hard to pencil and sellers aren't compelled to sell due to relatively steady operations and profitability.
Randev said "demand is flattening but not declining."
In "markets like Key West and Miami, we've seen deceleration, and at the same time, we've seen urban markets come back really strong," he said, citing New York and Chicago specifically.
For more from HNN's interview with Highgate's Ankur Randev, watch the video above.