Raleigh is now the center of the news as real estate veterans merge their forces to create a brokerage firm that specializes in buying and selling hotel properties in the whole country.
According to bizjournals.com, Don Walston and Sanjay Mundra will work with an international brokerage firm Sperry Van Ness and their own brokerage firm will be called SVN Hotels which will aim for the more than $45 million- per- year industry that only few brokerage firms have set their eyes on. The impending corporation will possibly be on a good shape due to fewer competition.
SVN Hotels will aim to get 5% - 7% of the market share in hotel brokerage market for the next five years. If the company succeed with their goal, it will place them in the top five hotel brokerage firm in the country. The top 5 firms are CBRE, Hodges Ward Elliot, JLL and Eastdil Secured.
Sanjay Mundra will serve as SVN Hotel's Chief operating officer and he said that they already have more than 40 listings looking for investors who will buy their hotels in the two years. SVN Hotels had already finalized franchise agreements with different hotels in US key cities such as Pittsburgh, Chicago, Los Angeles, Miami and many more.
In a report by newsobserver.com, SVN Hotels will be based in Raleigh and it is expected to grow with dozen offices across the country. The company also plans to hire 20 people only for the start but they believe that the employees' number will grow quickly.
SVN International already have 190 offices around United States and their firm focuses to commercial transactions which include hotels. Mundra and Walston new venture with SVN international will give them an instant 43 hotel properties valued all in all with about $250 million.
Raleigh- based SVN Hotels' main funding will come from SVN International assets and national broker network.
What do you think about these real estate giants' partnership? Sound it in the comments!
