A team's longevity crystallizes in the face of challenges. Its reaction to changes, recovery from setbacks, and pursuit of opportunities all determine its success. The milestones that The Hotel Group has achieved have shaped our success and underscored our mission to create maximum value and opportunities for growth.
The Hotel Group was founded in 1984 with the pledge to provide exemplary, hands-on management services to hotel investors. Our first management contracts were for limited-service properties in Texas and Oklahoma. In an early flash of innovative thinking that has since become a company hallmark, THG™ offered guests value-added amenities such as complimentary continental breakfasts, which were highly uncommon in the early 1980's. Those properties gained market share.
Throughout the decade, THG™ secured pre- and post-opening management contracts from developers across the nation, focusing on an incipient brand concept originating in Memphis - Hampton Inn. We opened five Hampton Inns in the late 1980s in Las Vegas, Nevada; Wichita Falls, Texas; Phoenix, Arizona; Los Angeles, California; and Murfreesboro, Tennessee.
Building upon a base portfolio of more than ten hotels, The Hotel Group then seized upon a management opportunity then overtaking the industry in the late 1980s. This milestone was achieved as a consequence of a change in the 1986 tax code, which permitted lenders to own hotels. An aggressive development effort resulted in The Hotel Group becoming a preferred hotel management company for Bank of America, Continental Savings of America, and U.S. Bank, among others. The high-profile brands then managed for lenders included the likes of Hilton, Sheraton and Embassy.
When the savings and loan crisis emerged on the American business scene in the early 1990s, history presented another lucrative opportunity for us - asset management for the Resolution Trust Company (RTC). The Hotel Group formed a joint venture with the RTC, Hotel Asset Management and Disposition Associates (HAMDA), and was charged with the workout and disposal of more than $460 million in non-performing hotel loans and Real Estate Owned (REO) properties.
Later, as the federal government dissolved the RTC in the mid-1990s, we reacted by turning to a new strategy, hotel ownership. To this day, the decision to add ownership to our list of abilities has led to further growth and stability for THG™.
Today, The Hotel Group focuses on continuing to develop and manage hotels for a select group of client partners, all the while acquiring and re-developing carefully chosen properties. Over the past few years, the company has invested more than $130 million to purchase several upscale full-service hotels throughout the United States.
With a diverse portfolio of 25 properties, roughly one quarter of which are company-owned hotels, plus a talented corporate management team, dynamic property general managers and dedicated staff, The Hotel Group is ready to achieve the next milestone.
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