Lowe Acquires Vacation Rental Management Business From Hyatt
CoralTree Hospitality to Assume Operations of Rental Units, Resort Facilities and Homeowners Associations in Premier Leisure Destinations
Lowe, a leading national real estate investor, developer and manager, has acquired Hyatt’s vacation rental management business. The business consists of management agreements for individually-owned resort residences across 36 properties in Colorado and Hawaii, as well as many of the properties’ homeowners associations (HOAs). Lowe’s hospitality management subsidiary, CoralTree Hospitality Group, will assume management of the rental units, HOAs...
“Our hospitality management business was formed in 1973 to provide residential resort management services. This transaction represents a welcome return for Lowe and CoralTree to the roots of our business and to familiar markets where we have been active for decades,” said Rob Lowe, co-CEO of Lowe. “Lowe and CoralTree are committed to providing the same personalized service, meticulous attention to detail and spirit of hospitality that defined the company’s vacation rental management approach from the beginning.”
Interest in resort residence rental has increased dramatically over recent years, fueled by lifestyle changes, the desire for extended stays and the ability to work remotely from anywhere. “This is the ideal time to renew our commitment to this growing segment of the hospitality business. Lowe and CoralTree look forward to providing world class service to our existing owners, HOAs and their guests, and to resort residence owners and guests in new markets across the country,” added Mike Lowe co-CEO of Lowe.
As part of the transaction, Lowe and CoralTree will soon be a key part of Hyatt’s forthcoming new vacation rental offering, Homes & Hideaways by World of Hyatt. The booking platform will provide the ability for the rental residences included in the transaction to be available for booking (standard and award booking) to the 40 million World of Hyatt members. This exciting new offering will augment the robust marketing capabilities and distribution channels already in place at CoralTree to ensure the widest possible exposure for the rental residences.
The transaction will transition management responsibility for more than 1,000 resort rental residences and 27 homeowners associations in Vail, Aspen/Snowmass and on three islands – Kauai, Hawaii Island, and Maui – in Hawaii to Lowe via CoralTree Hospitality Group. CoralTree will provide its signature customer-focused approach and commitment to superior financial performance while overseeing the physical properties with utmost care. Among the services provided will be owner relations and services, accounting and financial services, guest/concierge services, front desk and amenity management, maintenance and capital project oversight, marketing, distribution and pricing, housekeeping and procurement.
“CoralTree Hospitality is dedicated to delivering personalized service for our owner-clients and creating one-of-a-kind experiences for their guests. Residential resort management is how our company began and it is a service that we know well. We foresee a bright future as we guide this business toward new achievements,” said Tom Luersen, President of CoralTree Hospitality.
In 2018, Lowe sold its hospitality affiliate, Two Roads Hospitality, to Hyatt. “When we selected Hyatt in 2018 as the buyer for Two Roads Hospitality, we were confident that we had chosen the best platform to position the assets of our hotel owners and partners for future investment success. We appreciate Hyatt’s same confidence in Lowe by selecting us to guide this vacation rental management business to future growth and success,” said Mike Lowe, co-CEO of Lowe. The 2018 sale included the Destination Residential Management business that Lowe had built starting in the early 1970s, and is now re-acquiring, as one component of the significantly larger business it sold to Hyatt.
The transition of management to CoralTree Hospitality began upon closing of the transaction and will continue over the next few months to ensure a smooth, efficient and seamless experience for residence owners, colleagues and guests.
"We believe Lowe is well-positioned and highly qualified to operate the valuable business, and to help it reach its maximum potential," said James Francque, Global Head of Transactions at Hyatt. "We are confident Lowe is the best steward to continue to grow the business even further."
The term “Hyatt” is used in this release for convenience to refer to Hyatt Hotels Corporation and/or one or more of its affiliates.
About Lowe
Los Angeles-based Lowe, formerly known as Lowe Enterprises, is a leading national real estate investment, development and management firm. Over the past 51 years, it has developed, acquired or managed more than $36 billion of real estate assets nationwide as it pursued its mission to build value in real estate by creating innovative, lasting environments and meaningful experiences that connect people and place. Lowe currently has more than $2 billion in commercial real estate projects in the pipeline or under development. In addition to its Los Angeles headquarters, Lowe maintains regional offices in Southern California, Northern California, Charleston, Denver, Seattle, and Washington, DC. For more information visit www.Lowe-RE.com
About Hyatt Hotels Corporation
Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company guided by its purpose – to care for people so they can be their best. As of June 30, 2024, the Company's portfolio included more than 1,350 hotels and all-inclusive properties in 78 countries across six continents. The Company's offering includes brands in the Timeless Collection, including Park Hyatt®, Grand Hyatt®, Hyatt Regency®, Hyatt®, Hyatt Vacation Club®, Hyatt Place®, Hyatt House®, Hyatt Studios, and UrCove; the Boundless Collection, including Miraval®, Alila®, Andaz®, Thompson Hotels®, Dream® Hotels, Hyatt Centric®, and Caption by Hyatt®; the Independent Collection, including The Unbound Collection by Hyatt®, Destination by Hyatt®, and JdV by Hyatt®; and the Inclusive Collection, including Impression by Secrets, Hyatt Ziva®, Hyatt Zilara®, Zoëtry® Wellness & Spa Resorts, Secrets® Resorts & Spas, Breathless Resorts & Spas®, Dreams® Resorts & Spas, Hyatt Vivid Hotels & Resorts, Alua Hotels & Resorts®, and Sunscape® Resorts & Spas. Subsidiaries of the Company operate the World of Hyatt® loyalty program, ALG Vacations®, Mr & Mrs Smith™, Unlimited Vacation Club®, Amstar DMC destination management services, and Trisept Solutions® technology services. For more information, please visit www.hyatt.com.
Forward-Looking Statements
Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable when made, are inherently uncertain, and are subject to numerous assumptions and uncertainties, many of which are outside of Kiraku, Inc. or Hyatt's control, which could cause actual results, performance or achievements to differ materially from those expressed in or implied by such statements. Forward-looking statements made in this press release are made only as of the date of their initial publication and neither party undertakes an obligation to publicly update any of these forward-looking statements as actual events unfold, except to the extent required by applicable law. If one or more forward-looking statements is updated, no inference should be drawn that any additional updates will be made with respect to those or other forward-looking statements.
About CoralTree Hospitality Group
Launched in December 2018, CoralTree Hospitality Group is a wholly-owned subsidiary of Lowe. Colorado-based CoralTree delivers distinctive, memorable experiences that celebrate the surroundings, culture and community of each property. CoralTree was named among the top 20 hotel management companies in the U.S. after only one year of operation by Hotel Business magazine. The company provides hospitality and asset management services to 19 hotels and resorts in the United States and Mexico. The collection includes independent, branded and soft-branded properties such as Terranea Resort on the Southern California coast, Vivo Resorts in Mexico, Hotel Lincoln in Chicago, Hotel Vitale in San Francisco and Ptarmigan Inn in Steamboat Springs, Colo. The company also is overseeing the creation of The Eddy Hotel in Golden, Colo. which is scheduled to open in 2021. . For more information on CoralTree, visit www.CoralTreeHospitality.com.