From its annual convention, Choice Hotels International on Thursday announced it has entered into a joint venture with private investment firm Fillmore Capital Partners, LLC and its affiliates to develop multiple Cambria Suites hotel properties.
The brand’s first institutional investor has committed to developing a minimum of five properties, according to Steve Stoycos, managing director, capital markets, Choice Hotels. None of the developments have been announced thus far, but Stoycos says Fillmore plans to deploy the capital within the next 18 months, adding that the total capitalization, debt and equity will exceed US$200 million.
“This is further proof to the investment and development communities that we are truly making great strides with Cambria Suites,” said Stephen Joyce, president and chief executive officer of Choice Hotels International. “Institutional investors bring instant influence to the table and Fillmore Capital is as good as it gets. Their team has the relationships with investors and access to capital coupled with a deep understanding of the hospitality industry.”
The venture with Fillmore provides for the future development of multiple Cambria Suites hotels at locations within urban markets, which aligns with Choice Hotels’ plan to establish Cambria Suites as a major brand in such key markets.
Notably, Cambria Suites celebrated a landmark triple groundbreaking in the New York City market at the end of 2012 and more recently broke ground in downtown Washington, D.C. as part of a highly anticipated mixed-use project next to the convention center. Further, Cambria Suites is part of a major mixed-use development in Rockville, Maryland, next to Choice Hotels International’s new global headquarters and announced a double development agreement for the Dallas and Phoenix markets.