NEW YORK & LONDON--(BUSINESS WIRE)--TowerBrook Capital Partners L.P. (“TowerBrook”), an international investment management firm, and Related Fund Management (“RFM”), a real estate investment management firm, announced the completion of their investment in Stonebridge Companies (“Stonebridge” or the “Company”). The transaction was funded through a majority investment from TowerBrook, with a significant minority investment from RFM and a substantial roll-over investment from Navin Dimond, Founder and CEO of Stonebridge. In conjunction with the investment, TowerBrook, RFM and Mr. Dimond have also committed significant capital to establish a real estate investment platform to fund new hotel acquisitions.
Based in Denver, Colorado and founded by Navin Dimond in 1991, Stonebridge manages and operates over 11,500 hotel rooms (67 hotels) across 13 states in the Midwest, Northeast, South, and West Coast markets. The Company provides hotel management services, hotel investment opportunities, and development services across its portfolio. The Company’s mission to deliver Distinguished Hospitality™ to guests, team members, and partners has allowed it to grow its portfolio of hotels across multiple full-service, extended stay, select-service, and mid-scale hotel brands. The Company also holds franchise licenses with Hilton Worldwide, Marriott International, Hyatt, InterContinental Hotel Group, and Wyndham, as well as supports independent hotels.
Michael Recht, Managing Director at TowerBrook, stated, “Stonebridge is a strong operator that has demonstrated a consistent history of growth over several decades. Navin is a visionary who has built a unique platform that is sought after by hotel owners and investors. We are excited to partner with Navin and the Company to continue to grow and scale the business.”
Mr. Dimond added, “This transaction and partnership with TowerBrook and RFM will allow Stonebridge to grow our current portfolio, further expand our geographic footprint, and continue to refine our operations. TowerBrook and RFM are ideal partners to help Stonebridge achieve its next phase of growth.”
Michael Winston, Managing Director at Related Fund Management added, “We were attracted to Stonebridge for its strong operational prowess and diversified portfolio of managed properties across well-known brands with a focus on full- and select-service in geographically desirable areas. With hotel occupancy rates expected to return to pre-COVID levels in the next 12-18 months, Stonebridge’s current managed portfolio and our new real estate investment platform will be well-positioned to benefit from a prolonged period of consumer, business, and group travel recovery.”
“Given Stonebridge’s strong history of investing in hotels and its established platform, TowerBrook is excited to commit additional capital to pursue investment opportunities in the hotel real estate market. The new investment vehicle will seek to develop strategic capital partnerships alongside our captive operating solution, with the objective of investing $1bn+,” said Luke Doramus, Managing Director at TowerBrook.
As a part of the transaction, Mr. Dimond will continue his role as CEO. Jim Abrahamson, a hotel industry veteran who previously served as the CEO of Interstate Hotels & Resorts and currently serves as independent Chair of the Board of VICI Properties, Inc. and as a Board Director of other travel, hospitality and service related companies, has been named as non-executive Chairman of the Board for the Company.
Stonebridge Companies was advised by Bryan Cave Leighton Paisner LLP. TowerBrook was advised by Sidley Austin LLP. RFM was advised by Sullivan & Cromwell LLP. Financial terms of the transaction were not disclosed.
About TowerBrook
TowerBrook Capital Partners is a purpose-driven, transatlantic investment firm that works to grow and improve large and middle-market businesses by partnering with management teams and employees to build excellent companies that make a positive impact on society. Since inception in 2001, TowerBrook has raised a total of $18.7 billion and invested in more than 85 companies on both sides of the Atlantic. TowerBrook operates as a single, unified team of experienced investment professionals focused on unlocking value in complex situations. The firm’s highly synergistic family of funds make control and non-control investments across the capital structure, providing capital and resources to transform the capabilities and prospects of its portfolio companies.
As a disciplined investor with a commitment to fundamental value, TowerBrook seeks to deliver superior, risk-adjusted returns to investors on a consistent and responsible basis. TowerBrook is the first mainstream private equity firm to be certified as a B Corporation. B Corporation certification is administered by the non-profit B Lab organisation and is awarded to companies that demonstrate leadership in their commitment to environmental, social and governance (ESG) standards and responsible business practices.
For more information, please visit www.towerbrook.com
About Related Fund Management
Related Fund Management is a multi-strategy real estate investment manager that currently manages approximately $10.3 billion in commingled funds and separately managed accounts on behalf of public and private pension plans, endowments, family offices and sovereign wealth funds (estimate as of 9/30/21). RFM has a team of over 40 professionals headquartered in New York City with additional offices in Dallas, Los Angeles and South Florida. Since inception in 2010, RFM has invested across all portions of the capital stack and in all major real estate sectors.