Adam Flatto’s Georgetown Company is looking to make a big splash in the hotel space.
The firm is launching a new fund and management partnership that will target $1 billion worth of hotels across the country, representatives from Georgetown announced Tuesday.
Flatto said his company moved to expand its hotel portfolio earlier last year before the pandemic hit and then decided to go even further.
Georgetown bought a stake in the hotel management firm First Hospitality and is now looking to buy up to $1 billion worth of hotels. Despite the pandemic, Flatto said he’s not expecting to pick up properties at cut-rate prices.
“Clearly, Covid has created a considerable amount of displacement in that business. We’re going to take a hard look at those opportunities,” he said. “At the moment this is not a fire sale situation.”
Georgetown last year hired Michael Fishbin, who for a dozen years led EY’s global hospitality group, to spearhead the new platform. Flatto said the company already has one deal under contract and is in negotiations on two others.
The company is looking to buy properties ranging from select-service on up to luxury hotels, with a target of 150 to 400 rooms.
New York-based Georgetown already owns four hotels at its 1.9 million-square-foot Easton Town Center mixed-use project in Columbus, Ohio, and another in development in Atlanta. In New York City, the company has plans for a 1.1 million-square-foot office tower south of Hudson Yards, and recently signed a life-sciences tenant to its 787 Eleventh Avenue building on the Far West Side.