Dive Brief:
- Hotel Equities and Springboard Hospitality entered a strategic merger effective May 1, the hospitality management firms announced Tuesday. The firms did not disclose terms of the deal.
- Springboard CEO Ben Rafter will take over as CEO of the combined company. Brad Rahinsky, former president and CEO of Hotel Equities, will serve as chairman. For now, both parts of the combined company continue to operate under their own names, a spokesperson told Hotel Dive.
- The move combines Atlanta-based Hotel Equities’ branded, select- and full-service hotel portfolio with Springboard's roster of independent, lifestyle and resort properties. The resulting portfolio spans 300-plus urban, resort and outdoor destinations across the the U.S., Canada, the Caribbean and Latin America.
Dive Insight:
The merger combines Hotel Equities’ “operational excellence, scaled purchasing power and expansive North American footprint” with Springboard’s “entrepreneurial roots and strengths in commercial strategy, technology leadership, and deep expertise in West Coast and Hawaii markets,” per the announcement.
Al Smith, previously Hotel Equities’ president of hotel operations, will be chief operating officer of the new company. Rob Robinson, formerly executive vice president of Springboard, will be Springboard’s president.
In a statement, Rahinsky said the combined company "establishes scale with expanded regional insight and entrepreneurial agility to support owners across every asset class.” Rafter added that the firms’ combined expertise will allow the new company to “move faster, think more creatively, and deliver long-term value in ways that legacy operators simply can’t.”
The merger follows a long line of partnerships furthering Hotel Equities’ growth strategy. In March, the firm announced a strategic partnership with Arkansas-based Pinnacle Hotel Group, effective May 1.
And since 2021, Hotel Equities has partnered with Colorado-based Greenwood Hospitality, North Dakota-based National Hospitality Services, Tennessee-based Maximum Hospitality, Maryland-based Coakley & Williams Hotel Management, Washington-based The Hotel Group and Florida’s Trust Hospitality.
Hotel Equities’ portfolio has approximately 300 hotels in the U.S., Canada, Caribbean and Latin America, while Springboard brings 48 hotels and resorts across 14 states to the deal.
Hotel Equities named Greg O’Stean chief development officer last month.
