Boston, MA (May 3, 2013) - Pillar Hotels and Resorts is ready to move into the next phase and become a part owner in some of the hotels it manages.
The Irving, Texas-based company, which was acquired in 2011 by Monroe, Louisiana-based InterMountain Management from Archon Group, is seeking sliver-equity positions in hotels as it looks to grow its portfolio of 213 managed hotels comprising approximately 21,000 guestrooms.
"Pillar is probably the largest hotel management company you've never heard of," said Rick Frank, who was hired as the company's chief investment officer earlier this year.
Frank said during a break at last month's Hotel Equity and Lender Perspectives Conference in Boston that the company is open to being part of an acquisition of hotels in its current portfolio. Most of that portfolio consists of properties owned by Archon, which is an affiliate of Goldman Sachs.
He is tasked with expanding the platform by acquisitions and by looking for management contracts-one-off hotels or large portfolios. Part of that acquisition process is to piece together equity for such transactions.
"We're looking at acquisitions," Frank said. "We have the ability to provide sliver equity and in some cases we have existing partners where we can provide a major part of the equity in acquisitions."
Frank said that despite its global nature, the hotel industry is a local business, and that's the emphasis Pillar will put on its acquisition and growth process.
"When I underwrite hotels it's important to understand what's happening in that city, in that part of that city, on that corner," Frank said. "The long and short of it is that we analyze globally, but we underwrite locally."
It's just as important to look at what the fundamentals will be in the future as it is to know the current situation, he said.
"We're very focused on the exit," he said. "Before we enter a market, before we enter a deal, what's the strength of the market? What would be the strength of the market three, five, seven years hence? That comes into play on the branding equation, too."