AMS Hospitality, a joint venture between The Allen Morris Company and the Atlanta-based Stormont Hospitality Group, has teamed up with the Miami-based Black Salmon Capital to launch a $300 million initiative to acquire hospitality assets across the United States within the next 18 months.
In December the JV closed on its first acquisition, The Pelham Hotel, a 65-key boutique hotel in the heart of New Orleans. The Pelham Hotel is designated a historic landmark and ideally set adjacent to the vaunted French Quarter, within the city’s Central Business District. The property will undergo a complete, multi-million dollar renovation of the ground-floor lobby, public areas, and guest rooms in order to modernize its design and enhance the guest experience. New Orleans-based HRI Properties has been selected to provide property management services for the hotel
“The capability of this partnership to acquire and transform a hospitality asset is compelling,” said W. Allen Morris, Chairman & CEO of The Allen Morris Company. “This initial acquisition of The Pelham is an ideal of example of how we envision leveraging all facets of our varied strengths.”
The partnership between AMS Hospitality and Black Salmon leverages the key strengths and expertise of both firms across the disciplines of acquisitions, asset management, and capital raising. The JV will seek hotel properties that have undergone a price reduction from pre-pandemic values.
AMS Hospitality was formed earlier this year, joining The Allen Morris Company, one of the largest, diversified real estate firms in the southeast and Stormont Hospitality, a highly acclaimed hotel developer and asset manager.
Black Salmon Capital has acquired nearly $500 million of prime office buildings and senior housing assets across the United States, including US Bank Center in Phoenix, Arizona. It is a strategic partner of TSG Group, a developer of multifamily and offices. Black Salmon Capital’s investment strategy focuses on acquiring stabilized assets, in addition to value-add opportunities, in high growth markets with an educated workforce, a robust technology industry, and strong market fundamentals.
“We are delighted to mark Black Salmon’s foray into the hospitality industry with this deal,” said Jorge Escobar, CEO of Black Salmon. “Through our partnership with AMS, we will further our reach into the hospitality sector and generate new opportunities for our investors.”
“We are truly pleased to have partnered with a group of such consummate professionals across these various disciplines,” concludes Jim Stormont, co-founder of Stormont Hospitality Group, and President of AMS Hospitality. “We look forward to expanding our relationships and our portfolio within this sector while creating landmark assets.”