Why NewcrestImage's Mehul Patel Walked Away From Hotel Operations
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The pandemic was an eye-opening experience for NewcrestImage’s Mehul Patel. He realized that he wanted to wake up each morning and do what he enjoys: making deals and investing in hotels.
That’s the revelation that led Patel, managing partner and CEO of NewcrestImage, to have the company sell a portfolio of 27 hotels to real estate investment trust Summit Hotel Properties and sell its management contracts to Aimbridge Hospitality.
Speaking at the Caribbean Hotel & Resort Investment Summit, Patel said his company is currently in the process of a deal to acquire 16 more hotels, all of which Aimbridge will manage.
“We just feel like if you’re aligned with the right operator, you can do everything you want,” he said. “So every morning, I’m able to wake up and do more deals, able to invest more and let Aimbridge manage for us.”
Along with the scale, the resources, the wealth of people and the technology, Aimbridge has the footprint that will allow NewcrestImage to expand its reach further, Patel said. With his company’s portfolio in Texas, Arkansas, Oklahoma, Louisiana and California, it was difficult to try to expand into places such as New York.
“Today, having the Aimbridge platform, I’m able to buy a hotel anywhere I want,” he said. “I don’t have any of those boundaries.”Investment Opportunities
With today’s hybrid work environment, the Caribbean islands are a great place for investment, Patel said, adding that resorts allow investors to maximize their dollars.
Five years ago, U.S. hotel investors were focused on full-service hotels that could host conferences, he said. Now that interest is in resorts, even those in the U.S., where hoteliers can give travelers a customized travel experience whether they’re headed for leisure, business, conferences or a mix of those.
