Firm to Acquire and Develop Hotels with Focus on Mid-Atlantic States and Florida
Hotel veteran Jerry Herman has joined with Washington, D.C.-based real estate and hotel investors William Lipnick and Dr. Robert Lipnick to form BJB Hotels, LLC.
The new company plans to acquire and develop premium-branded and independent, upscale, full-service, all-suite, extended-stay and limited-service hotels, located in urban and top-tier suburban locations. BJB Hotels will concentrate on hotels along the East Coast, with a focus on the Mid-Atlantic states and Florida. In addition, the company will provide management and/or asset management services for its portfolio, as well as consulting services to third-party owners. The company also will explore strategic relationships with management companies that have expertise with BJB’s product type and markets.
Combined, the principals of BJB Hotels have more than 50 years of hotel and real estate industry experience, including the direct ownership and management of more than $350 million in hotels. Herman will serve as president and managing member of BJB and will be responsible for identifying acquisition and development candidates and day-to-day operations. He has more than 25 years experience in hotel ownership and operations. Previously, he was president and CEO of Arlington Hospitality. Prior to that, he was partner and CEO of City Hotels USA from 1992-2002.
Messrs. Lipnick, the company’s other principals, are second-generation real estate and hotel investors whose family businesses include Lipnick Construction Company and South Decatur Inc., which have focused on the construction, ownership and management of commercial, residential and hotel real estate in Washington, D.C. The Lipnick’s affiliates currently own and operate two upscale boutique hotels and lease a third hotel in the city.
“We believe the hotel industry outlook remains positive for the foreseeable future, especially in areas like the Mid-Atlantic states and Florida,” Herman said. “We realize that there is significant competition for properties at this phase of the real estate cycle. Our plan is to be aggressive in locating transactions and development opportunities but to be focused, disciplined and selective in our execution. We see opportunities for both acquisitions and development in markets with proven demand generators and significant barriers to new competition. We have equity and debt sources available to execute our strategies, both in joint ventures and for our own account.”
The company will seek to acquire a select number of full-service, boutique and franchised hotels with 150 to 250 rooms, as well as upscale all-suite, extended-stay and limited-service properties with 100 to 200 rooms. “We will be particularly interested in acquisitions with turn-around and conversion opportunities where we can add value to the transaction with strategic investment, repositioning and highly focused management,” Herman added.
BJB Hotels also will seek to acquire sites in prime locations with high visibility and multiple demand generators for either stand-alone or mixed-used developments. Target locations will be in metropolitan areas in Florida and the Mid-Atlantic states with populations greater than 500,000 people.
BJB Hotels is located:
BJB Hotels, LLC
1825 K Street, NW
Washington DC 20006
Phone: (202) 331-3222
Fax: (202) 331-3822