Dive Brief:
- New York-based residential hospitality provider Mint House acquired Austin, Texas-based Locale, assuming its portfolio of furnished apartments that combine the comforts of a private residence with the amenities of an upscale hotel, according to a release obtained by Hotel Dive.
- The transaction consideration includes both cash and stock, and Mint House investors are supporting the deal through the investment of additional capital, per the company. With the deal, 12 Locale properties will be rebranded and integrated into Mint House’s portfolio, bringing the company’s total holdings to 22 properties across 13 markets.
- The deal drives operational scale for Mint House and positions the operator for continued growth in the competitive apartment-style accommodations sector, according to CEO Christian Lee.
Dive Insight:
With the deal, Mint House fortifies its presence in Dallas and Nashville, Tennessee, and expands into new markets like Menlo Park, California; Madison, Wisconsin; and Phoenix, per the release. The operator’s portfolio, encompassing apartment-style short-term rentals in buildings with hotel-style amenities, spans major U.S. cities including Denver, Miami, New York and Philadelphia.
The combination will “drive greater scale, efficiency, and an enhanced offering for all guests,” Lee said in a statement, adding that the alternative lodging sector “is at an inflection point” that makes now “a timely and strategic opportunity to scale.”
The deal comes as travelers increasingly seek upscale extended stay options in urban markets.
Travelers want lodging options that provide “all the comforts of home,” with a place to work, do laundry and cook, plus luxury hotel offerings like security and professional cleaning, Lee previously told Hotel Dive.
Demand for home-style accommodations, though, has been “tempered by issues with unmanaged platforms such as requirements to perform chores at checkout, consistency issues, hidden fees, and privacy concerns,” Lee told Hotel Dive Monday. “We’re able to offer both the comfort and functionality of a homestay with a level of reliability and consistency not found on unmanaged platforms, which has spurred our recent growth.”
Mint House is focused on operating in multifamily buildings — whether that’s entire floors within larger apartment complexes or boutique full buildings that operate entirely as residential-style hotels, Lee said. The company is actively targeting primary and secondary cities and downtown core locations across the U.S., where it can “pull demand from a diverse set of leisure and corporate drivers,” per Lee.
To meet this growing traveler demand, other hospitality companies are expanding in the apartment-style accommodations sector via brand partnerships. Marriott International, for example, inked a strategic licensing agreement with Sonder Holdings in August, assuming its portfolio of primarily apartment-style accommodations in urban markets.
Residential hospitality management company Reside, meanwhile, teamed with Wyndham Hotels & Resorts in October on a 10-year development relationship that will convert multifamily properties to apartment-style hotel offerings.
In addition to assuming the Locale properties, Mint House plans to launch new properties this year, including opening its first location in Washington, D.C., according to the release.
