Maine Course Hospitality Group, a hotel ownership and management company based in Freeport, is continuing its expansion on a couple of fronts.
It recently acquired Homewood Suites by Hilton in Saratoga Springs, N.Y.
And construction will soon be completed on a hotel property called HomeAwhile, at 205 Southborough Drive in Scarborough.
The group declined to cite project prices. Financing includes investors and bank loans.
NY deal
Homewood Suites Saratoga Springs has 113 suites designed for both short and extended-stay guests, with fully equipped kitchens, complimentary breakfast, evening socials, a fitness center and an indoor pool. The hotel is near the Saratoga Race Course, downtown Saratoga Springs and Skidmore College.
The brand “fits perfectly with our family of hotels, which includes three properties in Albany, N.Y.,” said Sean Riley, the group’s CEO.
The group had eyed Saratoga Springs for many years, he added.
“Saratoga Springs fits our focus on quality properties in strong markets,” said Jonathan Bogatay, the group’s president.
The company partners with hotel chains Hilton and Marriott and has properties in New England, the Mid-Atlantic and Florida.
Industry cycles
Maine Course Hospitality Group was established as a restaurant company in 1986 under another name and different ownership, Riley told Mainebiz
In 1992, it bought its first hotel, the Freeport Inn. Riley worked for the inn and became a Maine Course Hospitality Group employee.
Today, the group has 27 hotels, three of them independent and the others Hiltons or Marriotts.
In Maine, the group has 13 hotels, in South Portland, Portland, Augusta, Brunswick, Bangor, Thomaston, Bath, Freeport, Waterville, Rockland and Rockport. The HomeAwhile in Scarborough will be its No. 14.
Some of the properties were acquired, others are ground-up construction.
“We go through cycles, as does the industry,” said Riley. “There are times when the cost to build is better.”
In the past couple of years, though, the group has mostly been in acquisition mode.
That’s where the Saratoga Springs property came in, he said.
Criteria for acquisitions include an opportunity to add “the Maine Course Hospitality magic” that helps the property perform better, he said. Improved performance can come from different angles, such as renovations, better revenue and expense management, better customer service or leveraging the group’s buying power.
Some properties need a total overhaul. By contrast, the Saratoga Springs property was in great shape. The brand will require certain renovations as part of Hilton’s periodic schedule of upgrades, he said.
Relationships
“It goes back to relationships,” Riley said of how Homewood Suites by Hilton Saratoga Springs came to the group’s attention. Being in the business for 40 years, mostly with Maine Course Hospitality, Riley and his team were acquainted with the local brokers and with the sellers.
“The broker knew us and knows our price range, so he called,” Riley said.
The group is putting together a property improvement plan with the brand’s input. That includes soft goods renovation such as paint, carpets, upholstery and drapery.
The property was an attractive investment for several reasons. That included demand generators such as the racetrack, a college and large businesses, drawing leisure, family and business travelers.
“And it’s a beautiful city,” he said.
With three hotels in Albany, the Saratoga Springs property adds to the group’s geographic presence, he noted.
Extended-stay brand
Two-thirds of the group’s properties are new builds. Siting criteria include having multiple demand generators.
The 109-room all-suite HomeAwhile hotel, at 205 Southborough Drive in Scarborough, is the group’s own brand, designed to address a gap in the extended-stay market, Riley said.
“We’re building our own brand,” he said.
The project broke ground a year ago. The hotel was developed in partnership with Opechee Construction, a Belmont, N.H., firm with expertise in the hospitality industry.
Opechee has built most of the group’s other properties.
Construction is wrapping up this month, furniture is expected to arrive in January and the hotel is scheduled to open in March, he said.
The extended-stay market is underserved in the area and includes people like traveling nurses, IT folks and construction workers, he said. The spaces are set up with home-like amenities such as kitchens and some with washer and dryers.
The group owns another extended-stay hotel next door: Homewood Suites at 200 Southborough Drive is more upscale, he said.
At 210 Southborough Drive, the group owns the Courtyard by Marriott, a traditional hotel for overnight stays.