Two Roads Hospitality Explained
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The hospitality industry has a new player on its hands: Two Roads Hospitality. The company came about as a result of a merger earlier this year between Destination Hotels & Resorts and Commune Hotels & Resorts.
Lowe Enterprises co-owns Two Roads Hospitality.
Two Roads Hospitality co-chairman Rob Lowe said his firm was not seeking a merger, but had hired an investment banker to help raise acquisition capital for buying hotels.
He introduced them to Commune Hotels, and the merger "seemed to make sense" the more time they spent together. The two firms approach the hotel business in the same way, according to Rob, being interviewed here by HOK SVP Pam Light. Rob was the keynote speaker at our LA Hospitality Development Boom event in DTLA last week.
Rob said his company, which had primarily focused on resorts, wanted to get into the urban space. Commune was urban-focused and aimed to get into the resort space.
Both share the philosophy that, in the hospitality business, the "primary customer" is really the owner of the hotel, according to Rob.
The two firms decided they would be a better management company, and create more profits at their existing properties, by working together.
As a result of having a "greater footprint," Rob said they can better serve the needs of loyal customers and have more crossover business.
Two Roads has a new property going up in Culver City, Ivy Station, near the Metro Expo Line. Rob said the development will be a "tremendous mixed-use asset."
It will include around 200 apartments, 200k SF of office and a 148-room boutique hotel, which Rob says Culver City really needs.