Two management companies, Benchmark Global Hospitality and Pyramid Hotel Group, announced a merger on Thursday to create a new organization called Benchmark Pyramid, which will come to market with a combination of 210 independent lifestyle and branded hotels in the U.S., Caribbean and Europe with annual revenue under management of more than US$3 billion.
What likely made this merger work was the disparate portfolios coming together to create an offer with a wider range of management specialty service. Benchmark has been known for its conference center hotels as well as an independent and lifestyle portfolio, whereas Pyramid has a predominance of branded management contracts.
As consolidation continues among third-party players, the new entity is backed by each company’s investment partners, Gencom and TZP Group. Serving as co-chairs are Pyramid Hotel Group Co-Founder Rick Kelleher and Benchmark Founder Burt Cabañas.
Warren Fields, formerly CEO and founding partner of Pyramid Hotel Group will act as the new company CEO, while Alex Cabañas, the former CEO of Benchmark Global Hospitality, will become Benchmark Pyramid president. The group’s European platform will continue to be led by Frank Croston, CEO of U.K.-based Hamilton Hotel Partners, a Pyramid Hotel Group Co.
The combined company will maintain offices in Boston; The Woodlands, Texas; Cincinnati; and London.