Barcelona Hotel Group, Dow Hotel Co. to Acquire Hotels

Barcelona Hotel Group, a financial investment group, and Dow Hotel Company LLC have signed a letter of intent to acquire and operate hotels. Under terms of the agreement, Dow will become a Strategic Alliance Member and co-invest with affiliates of Barcelona to acquire first-class, full-service hotels over the next 12 to 18 months.

Barcelona REIT One (BR-1), a private real estate investment trust, or an affiliate of BR-1, will acquire and own the properties. The closed-end fund, managed by Barcelona, expects to acquire up to US$450 million in hotel assets. BR-1 is the first in a planned series of Barcelona-administered hotel investment funds.

As a SAM, Dow will invest in BR-1, along with institutional investors. Dow will be responsible for sourcing acquisition candidates and will operate as a third-party manager for all properties it presents and that are acquired. Also as part of the agreement, Murray Dow, president, Dow Hotel Company, has been named to the Board of Directors of Barcelona Hotel Group.

Acquisition candidates will be properties that can benefit from Dow’s turn-around and repositioning expertise. Target properties will be capable of operating under the leading, premium brands in the mid-market through upper upscale segments. Locations will be primary and secondary U.S. and Canadian markets.

The Dow Hotel Company, headquartered in Seattle, is a national hotel owner/investor and operator of hotels. The company’s portfolio of owned and managed properties is comprised of institutional grade hotels, under such brands as Hilton, Marriott, Sheraton, Crowne Plaza, and Radisson.

Founded in 1997, the company aggressively seeks to acquire, co-invest with joint venture partners and/or manage mid- to large-size, institutional-grade, full-service hotels, especially those that have extensive food and beverage capabilities. Barcelona Hotel Group was organized in 2009 by a group of former hotel industry executives in the finance and corporate arenas. The company is headquartered in Scottsdale, Arizona.