Highgate’s select, extended-stay manager gains traction

NEW YORK CITY – Following a big industry trend, owner-operator Highgate is growing its management platform in the premium select-service and extended-stay segments with its InnVentures division announcing it will assume management of the Embassy Suites Portland Washington Square, Oregon, and Embassy Suites Seattle Bellevue, Washington, both owned by New York City-based family office Parkview International.

The hotels represent 596 keys, the company’s third and fourth Embassy Suites under management, and brings the total number of properties managed by InnVentures to 85.

David Montrose

Leadership of the 40-year-old business, which has the distinction of being first franchisee of Marriott’s Residence Inn Hotels, said they anticipate a similar pace of expansion through the balance of 2024, with additional management contracts to be announced later this year, marking entry into additional new markets as well as existing regions.

David Montrose, executive vice president and head of InnVentures, told Hotel Investment Today he anticipates adding an additional five to seven assets by year end. "In 2025, we will continue to take a disciplined approach by leveraging existing relationships to grow our portfolio by 10 to 15 premium assets," he said.

In 2023, InnVentures’ portfolio increased by 25 hotels in nine states, including entry into Virginia, South Carolina, North Carolina, Connecticut and Maryland, as well as additional expansion in Florida, Colorado, Washington, and Oregon.

Montrose added that growth will come organically and not through Highgate's existing or new owned assets. "Highgate's property acquisition is independent from the growth of InnVentures," he said. "All of InnVentures' growth is from owners of existing assets making a management change or choosing to select InnVentures at the time of acquisition... It is a mix of existing InnVentures relationships and stronger collaboration across the entire Highgate ecosystem to put forth InnVentures as the optimal manager for an opportunity based on market, location or asset profile."

Recently, we’ve been making a push to expand into new markets, such as Florida and the Northeast… We continue to grow in a disciplined and methodical manner, and in geographies where we can quickly assemble best-in-class talent clusters.

David Montrose

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In reference to the two new Embassy Suite deals, Montrose added, “The Pacific Northwest has been our primary market for over 40 years, and we’ve continued to flourish throughout Northern California and the Rockies. Recently, we’ve been making a push to expand into new markets, such as Florida and the Northeast… We continue to grow in a disciplined and methodical manner, and in geographies where we can quickly assemble best-in-class talent clusters.”

Looking ahead, Montrose said there is tremendous opportunity for high quality third-party management in the premium select-service and extended-stay space. "InnVentures’ 40 year track record of success positions the organization for continued organic growth from existing owners, retaining management for new owners upon sale in addition to the introduction to new investors from our satisfied current owners," he said. "The familial Highgate relationship helps to expand that network and serve as an additional endorsement."

From a performance perspective, Montrose specifically cited InnVentures optimization of ecommerce strategies to maximize revenue management, as well as onsite direct sales teams generating market share increases of approximately 15%.

"Our goal isn’t to be the largest, but rather to be the best at delivering premium results that maximize ownership returns and asset value," Montrose said. "We achieve this by developing great leaders, having tremendous focus on revenue maximization (not just revenue generation) and disciplined operational execution. Additionally, our regional managers oversee eight to 12 properties to ensure high engagement with every property and owner."