Endeavor Real Estate Group Acquires JMI Realty

A business relationship born nearly two decades ago has led to a major expansion for Endeavor Real Estate Group.

The Austin-based firm, which has $5.4 billion in assets, is expanding into the hotel sector by acquiring the hospitality development team and assets of JMI Realty after working with the group since the mid-2000s, the Austin Business Journal reported.

The purchase price was not disclosed.

The deal establishes a dedicated hotel acquisition, development and construction management division at Endeavor. Under this new division, the company will be able to develop hotels both as standalone projects and as components of mixed-use developments.

Gregory Clay, former president of JMI Realty, will take on the role of managing principal of hospitality acquisitions and development at Endeavor.

Endeavor’s Jamil Alam said he has collaborated with Clay on projects since 2005.

Their first mixed-use project was in Austin’s Rainey Street district; Alam developed The Shore, a 192-unit condominium completed in 2009, and Clay developed the 319-key Kimpton Hotel Van Zandt, which opened in 2015.

Beyond hotel acquisitions and development, Endeavor will offer project and construction management services to other hotel owners.

While the hotel acquisition market has slowed, Clay anticipates an increase in the latter half of the year as owners address maturing debt.

Despite adding nearly 16,000 rooms between 2016 and 2022, Austin’s hospitality market is thriving, with an occupancy rate of 67.4 percent, according to ConnectCRE, which cited Marcus & Millichap data. The average daily rate for luxury hotels in the city also increased, rising by 4 percent to $173.83, one of the highest in the South.

— Andrew Terrell