Dive Brief:

• Investment firm Three Wall Capital selected hotel management company Aimbridge Hospitality to manage five recently acquired Marriott properties, totaling 642 keys in the Phoenix and Fort Lauderdale metropolitan areas, the company announced Wednesday in a release obtained by Hotel Dive. 
• The deal, including three hotels branded under Marriott International’s extended stay Residence Inn flag, is one of several Aimbridge and TWC have made since establishing a partnership in 2019. Aimbridge will now manage nearly 80 extended stay, select-service and full-service properties owned by the firm.
• The deal adds extended stay weight to Aimbridge’s management portfolio at a time when the product type is gaining significant development momentum, including in Florida where two of the TWC-owned Residence Inn hotels are located.

Dive Insight:

Through its Select Service Division, Aimbridge will take over management of the Residence Inn Fort Lauderdale Plantation and the Residence Inn Fort Lauderdale SW Miramar, along with another Residence Inn hotel near Phoenix. The company will also manage a TWC-owned Springhill Suites property in Phoenix and a Courtyard by Marriott hotel in Miramar, Florida. 

Aimbridge adds the TWC hotels to a lofty portfolio of more than 1,500 properties across 20 countries, including 71 hotels formerly operated by Terrapin Hospitality that Aimbridge acquired earlier this year. 

With the TWC deal, Aimbridge expands its reach in the extended stay space as the product type becomes increasingly popular among investors, developers and guests alike. 

Marriott’s Residence Inn brand, particularly, is on pace to see significant development. As of Q1 of this year, the brand led other upper-tier extended stay brands in the U.S. construction pipeline, with 251 projects, or 30,280 rooms, according to Lodging Econometrics data obtained by Hotel Dive. 

Extended stay has shown strength in the Southeastern region, particularly in Florida, where real estate development and investment firm Rimrock Companies struck a deal with Choice Hotels International to develop 20 or more locations for its WoodSpring Suites and Everhome Suites brands. Noble Investment Group also recently acquired a 10-property WoodSpring Suites portfolio, including several Florida hotels.