BETHESDA, MD—As RLJ Development, LLC’s acquisitions strategy has evolved, the firm has consistently shown a preference for acquiring hotels with established brands. High on the list have been Marriott-, Hilton-, and Hyatt-branded assets. According to RLJ’s president, Thomas Baltimore, Jr., these companies’ brand segmentation, loyalty programs and worldwide reservations capabilities are among the reasons why. “But most importantly for us, companies like Marriott, Hilton, Hyatt and a few others have a demonstrated track record where they generate RevPAR indices that are higher than most of their competitors,” Baltimore said. Newcomers While a number of new brands have been introduced in the past few years in the upper end of the select-service sector, Baltimore has reservations. “We think both Courtyard by Marriott and Hilton Garden Inn have a superior, if not dominant, position in the marketplace,” he said. “Yet brands have to stay relevant. They’ve got to meet the changing needs of the customer. Both Marriott and Hilton are doing that. Having said that, we’re quite encouraged by Hyatt and what it’s doing with the Hyatt Place brand.” For his part, RLJ’s chairman and CEO, Robert Johnson, likes Hilton and Marriott’s owner outreach. “They’re really focused on working with their owners to make sure we really understand their philosophy when it comes to operating their properties to the highest level of efficiency, competence and quality customer service,” he said. “We know we’re dealing with a company that’s very cognizant of the value of a brand.”
