First Hospitality announced an agreement to acquire the majority of the hotel management agreements of Hostmark Hospitality Group, headquartered in Schaumburg, IL. This strategic move significantly expands First Hospitality's geographic presence, augments its collection of restaurants and bars, and promises to bring added benefits to its expanded portfolio, which will include more than 70 hotels nationwide.
David Duncan, President and CEO of First Hospitality, stated, "Our alignment with Hostmark Hospitality Group fits well with our strategy of being the first and obvious choice in every market we serve. With our experienced team and strong operational capabilities, we are well-positioned to provide increased value to all our owners and partners, including the Hostmark community. This acquisition positions us for further accelerated growth in key markets throughout the US and builds deeper relationships with hotel ownership groups that prioritize superior financial performance, enriched guest experiences, and increased associate satisfaction."
The transaction adds 17 hotels to First Hospitality's management portfolio, bringing the total to over 70 hotels with more than 10,000 keys and supported by over 3,200 world-class associates. The company's footprint now extends to markets in California, Texas, and Florida, while further strengthening its presence in key Midwestern markets.
"We are thrilled to be joining forces with First Hospitality," says Jerry Cataldo, President & CEO of Hostmark Hospitality Group. "This next chapter in our story aligns us with a team that shares our values, our passion, and our dedication to delivering outstanding hospitality management."
This integration promises several advantages, including attracting top-tier talent, improved operational efficiencies and investments aimed at optimizing hotel performance and guest experiences.
Stephen Schwartz, Chairman of First Hospitality said, "I have known the Cataldo family for a long time and have great respect for the legacy, track record, and culture that Jerry Cataldo and his family have built at Hostmark. We look forward to building on this foundation."
Duncan added, "I am especially excited that Jerry has agreed to join our team to focus on further expanding our portfolio and strengthening owner relationships. This acquisition sets us up for accelerated growth in new markets and allows us to provide further depth of resources to benefit our entire ownership community."
Closing of the transaction, which is subject to customary third-party approvals, is scheduled for early fourth quarter.