PM Lodge Group and Sightline Hospitality just lately introduced a strategic merger that can additional the expansion of PM Lodge Group’s life-style lodge division, Modus by PM Lodge Group, by integrating Sightline’s experience in experiential journey and revolutionary property administration. The brand new entity will proceed to function beneath the PM Lodge Group identify. A shared historical past and cultural alignment between the 2 organizations paved the way in which for the merger, as PM Lodge Group President Joseph Bojanowski and Sightline Hospitality President Kirk Pederson advised LODGING.
“Now we have recognized one another for fairly a while, having served on a variety of business advisory boards and councils collectively, and there was at all times a deep mutual respect for the accomplishments of every group,” Bojanowski associated. “So, there was a friendship and a relationship, and it kind of developed into ‘Hey, possibly combining these shall be higher than the 2 alone.’” From a cultural standpoint, each PM and Sightline are “folks first” corporations, he added. “One of many issues that we share from a tradition perspective is that each of our organizations have at all times targeted on making certain that efficiency will at all times intersect with alternative. We’ve acquired quite a lot of excessive performers on each side, and this [merger] creates quite a lot of alternatives for his or her efficiency to intersect with private progress. And we believed that there was a very complimentary depth and degree of expertise in every of our organizations and not using a super quantity of overlap.”
From a enterprise improvement perspective, the merger won’t solely bolster PM Lodge Group’s life-style lodge division, but in addition improve Sightline’s operations by way of PM’s sources. “Life-style hospitality is right here to remain, and that’s the place our enterprise is rising,” Pederson affirmed. “And I feel we do an excellent job at Sightline on unbiased and life-style resorts, and we’ve been working in some very distinctive markets. However there wasn’t a day that I didn’t fall asleep and take into consideration how good it might be to have these extra sources.” Bojanowski famous that these sources and providers embody “every thing from threat administration to insurance coverage to sustainability to power procurement to advertising and marketing … all these issues could possibly be a drive multiplier to [Sightline’s] expertise and experience, particularly in that experiential journey market. And for those who have a look at among the bigger administration corporations, that experience simply doesn’t exist in too many locations. And to the extent that it does, it’s not very scalable. With Kirk and the group that he’s put collectively, it’s distinctive in that side.”
The merger with Sightline will add 22 properties to PM’s portfolio which can be both open or set to open throughout the coming months—principally beneath the Modus model—and convey the overall property rely to 85. The growth will diversify the geography of the portfolio, particularly in mountain areas alongside the West Coast, and introduce PM’s first lodge within the Hawaiian Islands. Distinctive manufacturers that Sightline manages will be a part of the portfolio, together with RESET, offering immersive, nature-centric experiences, and evo Accommodations, which mixes mix city consolation with quick access to out of doors actions. These manufacturers significantly attraction to the youthful generations. “Each examine that’s completed is displaying a fairly important demographic shift from nearly all of vacationers being Child Boomers to Millennials and Gen Z. And whereas Child Boomers should be spending extra per journey, Gen Z is taking extra journeys, spending extra total, and is very targeted on an expertise once they journey. In order that equates to the life-style and the experiential aspect,” Bojanowski defined.
He added that the merger is an instance of PM’s deal with considerate progress. “We’re privately held, and so we don’t have these fixed pressures of internet unit progress and squeezing the final greenback of profitability out of the administration firm. … We align with companions that we need to do enterprise with [so] we will have some sturdiness in these relationships and people earnings streams. And so, we’re feeling fairly good about the place we’re proper now.”
