PROVIDENCE – TPG Hotels, Resorts & Marinas is moving its headquarters from Rhode Island to Maryland after acquiring a management firm in the mid-Atlantic state that specializes in the operation of three- and four-star hotels and resorts.
TPG Hotels, Resorts & Marinas, a national company that’s been based in Rhode Island as the hospitality management affiliate of the Providence-based Procaccianti Cos., announced this week that it acquired Marshall Hotels and Resorts Inc.
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TPG said a merged hospitality management company will be headquartered in Salisbury, Md., where it will oversee day-to-day operations of its national portfolio of properties. The website for Marshall Hotels and Resorts lists 75 properties in 16 states (none in Rhode Island) that it manages on behalf of the owners, including independent hotels and branded hotels that are part of chains such as Holiday Inn, Hilton, Hampton Inn and Wyndham.
With the completion of the transaction, TPG said it now operates 130 properties, with 20,000 guest rooms in 26 states.
Robert Leven, chief investment officer for TPG and Procaccianti Cos., called it a “natural fit” for the two businesses.
“Relationships are so important in our business, and this acquisition also represents a merger of relationships which will allow us to use our collective resources, systems, and experiences to provide our owners with higher returns and increased profitability for their properties,” Leven said. “It also allows us to continue our strategic growth plans as one of the preeminent management companies in our industry.”
Michael P. Marshall, who was CEO and president of Marshall Hotels and Resorts, and son of its late founder Charles L. Marshall, will serve as CEO and president of the combined management companies. Marshall Hotels and Resorts was established in 1980.
Michael P. Marshall said the merger makes TPG one of the 10 largest third-party management providers in the hospitality industry.
“This is a win-win for all parties involved,” Michael Marshall said in an announcement about the newly merged companies. “This creates advantages and efficiencies due to the combined workforce’s economies of scale, depth, talent, and deployment of best practices across the portfolio. This move also provides access to greater capital, allowing us to invest alongside ownership groups when prudent, as well as attract a new level of talent sophistication.”
Ralph V. Izzi Jr., a spokesperson for TPG and Procaccianti Companies, which dates back to the founding of Procaccianti Associates in 1958, said TPG is maintaining a presence in Rhode Island while relocating its headquarters.
“We are simply centralizing our operational reporting through the Salisbury, Md., office,” Izzi said. Rhode Island won’t lose any of the 120 corporate employees TPG and Procaccianti now have in the state, he said.
Asked about the financial details of the merger, Izzi said the price and terms of the acquisition will remain private.
“This is great news for Rhode Island,” Izzi said. “It’s another example of a Rhode Island-grown success story, as we continue to expand our company and its national platform.”
Earlier this month, TPG announced that it bought two Jamestown marinas, including Conanicut Marina and the Taylor Point Boat Yard. TPG also owns Dutch Harbor Boat Yard in Jamestown, and Champlin’s Marina and Resort in New Shoreham.
TPG has operated hotels throughout the Rhode Island area, including the Renaissance Providence Hotel, the Hilton Providence, Wyndham Garden Inn in Providence and many others.
(SUBS 11th paragraph to add number of R.I.-based corporate employees.)
Marc Larocque is a PBN staff writer. Contact him at Larocque@PBN.com. You may also follow him on Twitter @LaRockPBN.
Sorry, neither Procaccianti or TPG have ever been considered community centered organizations. You especially know that when you look at their low involvement in local affairs, especially their support of cultural, educational, and charitable groups which is zilch. When you gauge the impact of a successful corporation with its headquarters on a community, look no further than Microsoft and the benefits it has brought to the Seattle area. As the saying goes, Procaccianti can’t even carry Microsoft’s glove!