Montage Hotels & Resorts and Ares Management, L.P., announced that a real estate fund managed by Ares has made a strategic investment in Montage. As part of the transaction, Ares will purchase a minority stake of up to 20% in Montage and will provide up to US$200 million in future growth capital to Montage, with a strategic focus on the continued expansion of its portfolio of Montage- and Pendry-branded hotels and resorts.
As the company’s largest shareholder, Alan Fuerstman will remain at the helm of Montage Hotels & Resorts, continuing to serve as founder and CEO, as well as chairman of the board. All original investors in Montage Hotels & Resorts also remain invested, including Ohana Real Estate Investors. Jay Glaubach, managing director at Ares Management and co-portfolio manager of Ares’ opportunistic real estate funds, will join the Montage board of directors.
This transaction marks the second Ares investment with Montage. Funds managed by Ares made an investment in Pendry San Diego, set to open later in 2016.
“We are delighted to welcome Ares into the Montage family,” said Fuerstman. “We greatly admire the vision, culture of excellence and track record of investment success that the Ares team has established over the last several years. With the continued support of our original investors and now also with Ares, Montage Hotels & Resorts is poised for tremendous growth and success in the years ahead.”