Third-party hotel management companies Benchmark Global Hospitality and Pyramid Hotel Group announced they are merging to create Benchmark Pyramid.
The new company will have a portfolio of 210 properties operating in the U.S., Caribbean and Europe, according to the news release announcing the deal. It will have annual operating revenue under management of more than $3 billion.
The two companies' longtime investment partners, Gencom and TZP Group, are backing the new entity. Pyramid co-founder Rick Kelleher and Benchmark founder Burt Cabañas will serve as the company’s co-chairs.
Warren Fields, formerly the CEO and founding partner of Pyramid Hotel Group, will be CEO of Benchmark Pyramid. Alex Cabañas, formerly CEO of Benchmark Global Hospitality, will serve as president. Frank Croston, CEO of United Kingdom-based Hamilton Hotel Partners, a Pyramid Hotel Group Company, will continue on to lead the merged companies’ European platform.
“Entertaining the idea of a merger has always been about finding the right fit in terms of both business strategy and employee culture,” Fields said in the news release. “We recognized early in our discussions there were unique and exceptional advantages in combining the respective strengths of our organizations. Together, Benchmark Pyramid has the depth, capability and DNA to innovate and lead for years to come, which will significantly increase owner value, employee advancement opportunities, and portfolio growth.”
Specialization and differentiation have been the focus of the merger conversations from the start, Cabañas said in the release.
“Our goal is to be the best in independent and brand management as well as the most experiential hotel company in the industry for our guests, our employees and the communities we’re in,” he said.
Benchmark Global Hospitality was based in Woodland, Texas, and focused on management of hotels, resorts and conference centers. The company had two portfolios under its management umbrella: Benchmark Hotels & Resorts and Gemstone Collection. It was the creation of a merger in 2016 between Benchmark Hospitality International and Gemstone Hotels & Resorts.
Pyramid Hotel Group was based in Boston and managed a portfolio of branded and independent full-service and select-service hotels and resorts.