Warburg Pincus and Triyar Hospitality have launched a $160 million (€113 million) joint venture to acquire and develop “select-service” hotels in the Western and Southwestern US.
The transaction was made through Warburg Pincus Real Estate I, which closed in 2006 with $1.2 billion of equity and focuses on investments in North America, Europe and Asia.
The joint venture between the two firms will target the development of hotels such as Starwood’s new select service concept, aloft, which is geared toward business travelers. The venture will also look at acquiring, repositioning and developing hospitality assets in other sectors.
“We believe that Starwood has created a unique product that fills a market void between full-service boutique hotels and traditional select-service and limited-service properties,” Michael Mahoney, Triyar chief executive, said in a statement. “Our joint venture with Warburg Pincus will enable us to react quickly to opportunities and build a portfolio of state-of-the-art hotel assets.”
Triyar has real estate holdings across multiple sectors including hotels, office, residential, industrial and retail properties primarily in New York, Texas, California and Arizona. It also owns development land for mixed-use commercial and residential projects.
“Triyar has an established track record of successfully acquiring and developing real estate assets across multiple U.S. markets,” Michael Profenius, managing director at Warburg, said in the statement. “We believe our joint venture is well positioned to identify and invest in attractive opportunities in today’s current lodging environment.”
Triyar is currently developing the $105 million W Scottsdale Hotel and Residences in Scottsdale, Arizona and the $25 million aloft Tempe in Tempe, Arizona.