ROCKVILLE, Md., Sept. 24, 2018 /PRNewswire/ -- Building on
Choice Hotels International, Inc.'s (NYSE: CHH) dedication to the
growth of its upscale Cambria Hotels brand, the company entered
into a letter of intent (LOI) with an affiliate of Oz Real Estate,
the real estate platform of Oz Management (NYSE: OZM), that sets
forth a framework for a co-investment platform to accelerate the
development of Cambria Hotels throughout the United States.
"The Cambria Hotels brand continues to drive success for Choice
Hotels and, as evidenced by signing this LOI, we are attracting
some of the largest institutional real estate investment groups in
the world. The LOI with Oz Real Estate signals our companies'
commitment to the brand through a contemplated 50-50 joint-venture
agreement that could result in building as many as 50 Cambria
Hotels in strong corporate travel markets," said David Pepper, chief development officer, Choice
Hotels. "We believe this will propel the Cambria brand to the next
level and rapidly deliver Choice's sought-after upscale brand."
To help support this planned joint venture and other growth
opportunities for Cambria Hotels, the Choice Hotels Board of
Directors has authorized an additional $250
million in capital investment.
Oz Real Estate invests in both opportunistic real estate private
equity and real estate credit in the U.S and Europe. Founded in 2003, Oz Real Estate has
raised approximately $3.8 billion of
dedicated real estate capital and completed more than 108
transactions across 19 diverse real estate asset classes as of
June 30, 2018.
"The hotel industry is growing rapidly and travel in the U.S.
continues to break records. Choice Hotels is a major participant in
that growth, and the Cambria Hotels brand has been a proven
performer – that's why we entered into this LOI. We look
forward to working with Choice for years to come and advancing the
Cambria brand," said Steven Orbuch, President of Oz Real Estate.
Choice Hotels is in the process of identifying sites in key
locations, as well as developers and management companies to build
and operate these hotels, in anticipation of entering into a
definitive agreement.
Cambria Hotels has nearly 120 properties open or in the
pipeline, and the brand is expecting to set a record for openings
for the second-straight year. Hotels have opened in several major
markets this year, including Charleston,
S.C., Nashville, Tenn.,
Phoenix, and Philadelphia. Future openings are planned in
Austin, Texas; Baltimore; Boston; Houston; Miami; Milwaukee; Minneapolis; Orlando, Fla.; Napa,
Calif.; San Francisco; and
Washington, D.C.
Cambria Hotels is franchised by Choice Hotels. For Cambria hotel development opportunities, visit
choicehotelsdevelopment.com/cambriahotels.
About Cambria Hotels
Cambria® Hotels are designed for
the modern traveler, offering guests a distinct experience with
simple, guilt-free indulgences allowing them to treat themselves
while on the road. Properties feature compelling design inspired by
the location, spacious and comfortable rooms, flexible meeting
space, and local freshly prepared food and craft beer. Cambria
Hotels is rapidly expanding in major U.S. cities, with hotels open
in Chicago, New York City, Pittsburgh, Washington, D.C., and Los Angeles. There are nearly 40 Cambria
properties open across the United
States, and over 100 hotels open or in the pipeline in the
U.S. and Canada. To learn more,
visit www.cambriahotelsandsuites.com.
About Choice Hotels
Choice Hotels International, Inc.
(NYSE: CHH) is one of the largest and most successful lodging
franchisors in the world. With more than 6,800 hotels, representing
more than 550,000 rooms, in over 40 countries and territories as
of June 30, 2018, the Choice® family of hotel
brands provide business and leisure travelers with a range of
high-quality lodging options from limited service to full-service
hotels in the upscale, midscale, extended-stay and economy
segments. The award-winning Choice Privileges loyalty program
offers members benefits ranging from everyday rewards to
exceptional experiences. For more information,
visit www.choicehotels.com.
About Oz Management
Oz Management ("Oz") is one of
the largest institutional alternative asset managers in the world,
with approximately $33.0 billion in
assets under management as of September 1,
2018. Oz serves the investment needs of a diversified
institutional base, providing asset management services through
funds that pursue a broad range of global investment opportunities
from its offices in New York City,
London, Hong Kong, Mumbai and Beijing. Oz currently manages multi-strategy
funds, credit funds, collateralized loan obligations, real estate
funds and other alternative investment vehicles.
About Oz Real Estate
Oz Real Estate, the real estate
platform at Oz, was founded by Steven E.
Orbuch to make investments in real estate and real estate
related assets across North
America and Europe. Through
June 30, 2018, the principals of Oz
Real Estate have invested in over $9.5
billion of private real estate assets, including direct
equity investments, preferred equity structures, mezzanine
financing, and senior loans. Oz Real Estate's portfolio has
included over 20,000 hotel rooms, over 30,000 multifamily and
residential units, and over 20 million square feet of retail and
office properties. In addition, Oz Real Estate has developed
expertise in certain niche real estate asset classes including
gaming, healthcare, senior housing, cellular towers, and land
development. Oz Real Estate is currently making (i) opportunistic
investments from Och-Ziff Real Estate Fund III LP, which has total
equity commitments of $1.5 billion,
(ii) credit investments from Och-Ziff Real Estate Credit Fund,
which has total equity commitments of $736
million, and (iii) special situations investments from other
capital sources within Oz. Prior to forming Oz Real Estate, Mr.
Orbuch was responsible for investing capital on behalf of
Blackstone's real estate funds,
including Blackstone Real Estate Partners I, II, III and IV.
Forward-Looking Statement
This communication includes
"forward-looking statements" within the meaning of federal
securities laws concerning future events, including the negotiation
of a definitive agreement with Oz Real Estate (or its affiliates),
the subsequent development of additional Cambria hotels and the performance of the
Cambria brand. Such statements are subject to numerous risks and
uncertainties, including the negotiation of a final agreement with
Oz Real Estate (or its affiliates), the ability to identify
suitable locations, developers and operators for additional
Cambria hotels, construction
delays, the attractiveness of the Cambria brand and the other "Risk
Factors" described in our Annual Report on Form 10-K, any of which
could cause actual results to be materially different from our
expectations. We make these statements as of the date of this
communication, and we assume no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise.
Addendum
This is not an offering. No offer or sale of
a franchise will be made except by a Franchise Disclosure Document
first filed and registered with applicable state authorities. A
copy of the Franchise Disclosure Document can be obtained through
contacting Choice Hotels International at 1 Choice Hotels Circle,
Suite 400, Rockville, MD 20850,
development@choicehotels.com.
© 2018 Choice Hotels International, Inc. All Rights
Reserved.
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SOURCE Choice Hotels International, Inc.
