Highgate Hotels, an affiliate of Los Angeles-based real estate investment and hospitality management company Highgate, has entered into an agreement to purchase the lifestyle-to-luxury Viceroy Hotels & Resorts.
The deal is part of a growing trend of larger companies in the hospitality space bolting on smaller ones that have peaked or can’t accelerate further without the backing of a more deep-pocketed player.
Highgate Hotels, which has more than 500 owned or managed properties globally, but not a true brand, has one now thanks to this acquisition. The transaction is expected to close early next year, but no sum has been specified.
Viceroy’s 10 current hotels, with two more reportedly on the way in Portugal and Panama by the end of 2024, will likely be folded into Highgate’s Lifestyle & Luxury division, joining such other hotels as The Knickerbocker and Park Lane in New York.
For Highgate, the deal may be more about the management contracts than the brand, with some key assets, including Viceroy Los Cabos, Viceroy Chicago and Sugar Beach, A Viceroy Resort, in St. Lucia.
Highgate said it now aims to add hotels to the Viceroy portfolio in “key urban gateway markets and select resort destinations” in the coming months.
Viceroy has built an outstanding customer reputation due in part to its strong service culture and incredible team. Through complementing Viceroy’s platform and DNA with Highgate’s diversified ability to grow through real estate acquisitions, development and third-party growth channels, Highgate intends to add brand-accretive hotels to the Viceroy portfolio that will further enhance customer perception and brand awareness. Further, through powering Viceroy with a proprietary relationship with Highgate’s operating company, and imparting the benefits of Highgate’s scale, we will be able to provide significant incremental value to associates, guests, owners and partners.
Richard Russo, principal at Highgate
We are excited for Viceroy’s future and we believe that this acquisition will not only fuel the future expansion of our brand, but also give us a true partner, one who will offer incredible support, opportunity and collaboration. This deal will accelerate our momentum, and solidify our position as the leading modern luxury lifestyle brand in our space.
Bill Walshe, CEO of Viceroy
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