Ares Management joined forces with Excel Group to invest in a portfolio of eight limited-service, select-service, and extended stay hotels affiliated with Hilton and Marriott. 

Located in high-demand East Coast markets, these properties mark a key expansion opportunity for both firms. Financial terms of the investment were not disclosed.

The partnership will enable Excel to deploy growth capital into additional Hilton and Marriott-branded limited-service and extended stay hotels across the U.S. Excel Group founder and principal Shoham Amin called the transaction a pivotal milestone, noting that Ares’ backing will support the firm’s continued expansion in the hospitality sector.

Ares Co-Head of Real Estate Secondaries, Jamie Sunday, highlighted plans to strategically grow the existing portfolio through further acquisitions. Ares, which managed over $525bn in assets as of 2024, sees strong potential in the select-service and extended stay segment. Excel Group, founded in 2011, has built a portfolio of approximately $1bn in hotel real estate.

Investor demand for select-service and extended stay hotels remains strong, with JLL reporting a 232,000 room night surge year over year in 2024. Business travel and temporary housing needs continue to drive the sector’s growth. With interest rates stabilizing, hospitality investment activity is expected to gain further momentum in 2025, particularly in urban markets.

This partnership reinforces the increasing role of private equity in the hospitality sector, as firms like Ares and Excel capitalize on evolving travel trends and strategic expansion opportunities.

Source: Hotel Dive