Trilantic has acquired a minority stake in Highgate Hotels. No financial terms were disclosed. Moelis provided financial advice to Highgate on the transaction. Based in New York City, Highgate is an operator of hotels.
New York – October 7, 2014 – Highgate Hotels L.P. (“Highgate” or the “Company”), a premier operator of hotels in the nation’s largest gateway markets, and Trilantic Capital Partners (“Trilantic”), a global private equity firm, announced today that they have formed a partnership through which Trilantic North America has acquired a minority interest in the Company. The transaction provides Highgate with access to significant capital and positions the Company for accelerated growth in the hospitality management industry. Highgate’s ownership and management team will work closely with Trilantic to continue the expansion of the Company’s business both in the U.S. and internationally.
Mahmood and Mehdi Khimji, who founded Highgate in 1989, will continue to lead the Company and remain the majority shareholders. In addition to an investment from Trilantic, Ares Capital Corporation (“Ares Capital”) has provided the newly formed partnership with debt capital to pursue strategic growth initiatives. The partnership with Trilantic combined with Ares Capital’s investment will significantly enrich Highgate’s ability to grow.
“We have entered the next stage of our expansion strategy and are confident that our partnership with Trilantic will further strengthen Highgate’s industry-leading position through organic growth, acquisitions and continuous innovation in hospitality management,” said Mahmood Khimji, Co-founder and Principal of Highgate. “We see tremendous opportunity to expand Highgate beyond our core hotel management capabilities and are in the process of aggressively targeting opportunities to enter both adjacent and complementary business lines, all with the objective of continuing to present cutting-edge capabilities to our clients.”
“We are excited to work with Trilantic and believe the firm’s support and reputation for building world class operating businesses will dramatically enhance Highgate’s ability to achieve our shared goals for the Company,” said Mehdi Khimji, Co-founder and Principal of Highgate. “Our proprietary capabilities provide our hotel owners with an enormous competitive advantage today. We are focused on continually improving these capabilities and distributing our services globally.”
“Highgate has distinguished itself as a clear leader in the hospitality industry and we are thrilled to partner with the Company and its talented management team,” added Jon Mattson, Partner at Trilantic. “We look forward to helping Highgate execute on key growth initiatives and capitalize on the increasing demand for its services.”
Moelis & Company acted as exclusive financial advisor to Highgate. Sullivan and Cromwell LLP and Gibson, Dunn & Crutcher LLP provided legal advice to Highgate and Trilantic, respectively.
About Highgate Hotels
Highgate is a premier operator of hotels. Highgate manages approximately 60 hotel properties and has a significant presence as an operator of full-service hotels in several major markets including Honolulu, Miami, San Francisco and Boston and is the largest operator of hotels in New York City. Headquartered in New York City, Highgate has additional offices in Dallas, Seattle and London.
About Trilantic Capital Partners
Trilantic Capital Partners is a private equity firm focused on control and significant minority investments in North America and Europe, with a primary investment focus in North America in the business services, consumer, energy and financial services sectors. As of June 30, 2014, Trilantic manages five institutional private equity funds with aggregate capital commitments of $6.2 billion. For more information, visit www.trilantic.com.