As part of a proprietary approach that helps enhance the appeal and increase the value of high profile hotels in major urban markets, Thayer intends to invest up to $17 million in the property in its first twenty-four months of ownership.
Similar to the J.W. Marriott San Francisco, which Thayer acquired in 2011, Thayer's approach focuses on increasing market share, effectively managing channels of distribution, and making impactful changes to the hotel's offerings, services and amenities.
Since Thayer's acquisition of the J.W. Marriott, the property's Net Operating Income (NOI) has tripled, and the hotel has risen to the top of its competitive set in the San Francisco market.
Lee Pillsbury, Co-Chairman and Chief Executive Officer of Thayer Lodging Group, said, "We are happy to announce Thayer's acquisition of the Ritz-Carlton, San Francisco, a truly wonderful property and the first investment for Thayer Fund VI." He concluded, "We are bullish on the San Francisco market, and bullish on the environment for investing in hotel real estate. We look forward to making additional announcements in the weeks ahead."
Fred Malek, Thayer Lodging Chairman, added, "With this transaction, we hope to replicate the success of our Orlando Grand Lakes Ritz Carlton, one of our highest return investments."
Since forming its first private equity fund more than two decades ago, Thayer has completed 43 hotel investments with a total acquisition cost of approximately $2.5 billion. The firm has consistently met and exceeded the investment objectives of institutional investors that seek superior returns through hotel real estate ownership. Thayer Fund VI is targeted as a $300 million Fund.
Thayer Lodging Group, based in Annapolis, Md., is a privately held hotel investment company that was formed in 1991 by Frederic V. Malek and Leland Pillsbury. Since its founding, Thayer has established a consistently successful track record spanning every investment cycle. In 2010, Thayer acquired Interstate Hotels and Resorts, the world's largest third-party, independent hotel manager, which operates nearly 400 hotels globally. Through Thayer and Interstate, the company has invested in more than 100 hotels.
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