The move leverages vast industry experience and reputation, while broadening the business platform, depth of expertise and knowledge base of both companies to provide superior asset management and hospitality advisory services to their respective clientele, the companies report.
The two firms have had dealings with one another in the past, and Chad Crandell, managing director/CEO, CHMWarnick, and Rachel Roginsky, principal, Pinnacle Advisory Group, have known each other for many years.
Given the current climate because of the COVID-19 pandemic, they agreed that an alliance would help both companies. “We wanted to have some structure in place so that we weren’t fumbling opportunities away because we didn’t have the structure in place,” Crandell said in a press conference announcing the deal. “Let’s build a structure so that when those opportunities present themselves, we can react and do it quickly. That, we felt, was really important to do, not only for our existing clients, but also for hopefully some new clients that we will be able to attract as well.”
Roginsky added, “We want our clients to get the best of both worlds. It just seemed like a natural shot for us.”
Combined, the strategic alliance immediately will service an asset management portfolio approximating 80 hotels with more than 32,000 rooms nationwide, representing virtually all segments and major brands, including among others, Marriott, Hilton, Hyatt, IHG and Accor, as well as a growing number of independent and lifestyle properties and select-service portfolios. The companies specialize in convention headquarter hotels, complex resorts, urban lifestyle and luxury properties, upper-upscale landmark assets, select-service and extended-stay hotels, as well as properties proximate to airports and college and university campuses. Beyond the $15 billion in lodging real estate overseen as part of the asset management platform, the alliance collectively is advising owners and lenders on approximately 250 lodging projects annually, including hotel development, repositioning, management/brand selection, operations assessment, acquisition due to diligence and ownership-entity accounting services.
Pinnacle has guided clients on a wide range of critical decisions throughout the life of hotel investment, from initial feasibility and branding strategy to operational reviews and competitive impact studies. Often, its work is on the front end of an investment strategy, providing due diligence and advisory prior to the development of an asset or during the initial stage of acquisition. The alliance provides an opportunity for Pinnacle clients who may be looking to continue with professional oversight to access CHMWarnick’s asset management and accounting platform and related services geared toward value enhancement. Likewise, CHMWarnick can tap into Pinnacle’s market research, trends analysis and related expertise to support their clients with acquisition opportunities, strategic repositioning and development planning and asset management engagements. The affiliation will bring a combined professional staff of more than 50 industry experts across 13 offices nationwide.
“We saw this as an ideal match between the two companies—we fit like a hand in a glove,” said Roginsky. “Both of our groups are recognized as leaders within the industry with reputations for delivering sound, strategic advice based on decades of experience. By drawing on each company’s distinct strengths, this alliance allows us to offer the most comprehensive services available and expanded benefits for our clients.”
Crandell added, “We complement each other very well. Through the relationship that we are going to have with Pinnacle, it is going to allow us to look at more deal opportunities and hopefully for us, that leads to asset management, so our platform on the due diligence side is going to be very beneficial.”
Tags: Chad Crandell CHMWarnick Pinnacle Advisory Group Rachel Roginsky
