All Staff to Remain in Place
MOUNTAIN VILLAGE - Affiliates of Northview Hotel Group, in partnership with a fund managed by an affiliate of Apollo Global Management, LLC announced on Aug. 22 the acquisition of Hotel Madeline Telluride, one of Telluride’s premier hotels and residences. Northview will attempt to improve the already stellar reputation of the hotel, according to a statement, by improving guest experience. Upgrades will also include improving the quality and marketability of the hotel’s 50 residences, many of which currently sit empty.
According to the statement, Northview will operate the hotel on behalf of the partnership, and will oversee multiple, proposed capital improvements projects and the sale of the residences. Northview was pre-approved by the Mountain Village Town Council to manage the property in July.
During July’s Mountain Village Town Council Meeting, Mountain Village Mayor Dan Jansen stated, “I am very supportive of this operator and appreciate that the partnership will invest in improvements and additional amenities, as well as help grow our bed base by releasing the residences for sale.”
He continued, “Hotel Madeline Telluride is known as one of Telluride’s premier properties, and I am hopeful that Northview will continue to maximize its potential. I am looking forward to seeing more detail on the improvement plans and working with Town Council to make it happen.”
In an interview, Hotel Madeline’s Director of Sales and Marketing, Todd Gehrke, said that although capital improvements of the hotel have not been finalized, the hotel’s team will be having strategic design meetings in the coming month.
“Initial concepts include enhanced arrival experience and lobby area, expanding our pool area, and creating a retail storefront for the Spa at Madeline,” Gehrke said. “Our goal is to upgrade the luxury residences, and create owner services which continue to set Madeline apart as the premier full service luxury experience in Telluride.”
The hotel includes over 50 residential condos in addition to 100 hotel rooms. According to Gehrke, many of these residences have never been furnished and utilized, and the intent is to complete the interior design process and bring the residences onto the Telluride real estate market.
As of right now, the hotel’s popular restaurants, SmakBar and Rev remain unchanged, although Gehrke is certain the hotel will continue to build on and expand current offerings.
Gehrke also said that “all staff at Madeline are remaining in place as we move forward as Northview.”
What may change, however, are rates to stay at the upscale hotel. Although Gehrke was not inclined to cite specific plans or possibilities for raising rates, he did say that “Madeline Telluride Hotel & Residences is the premier full service luxury hotel in the region and we intend to continue enhancing the guest and owner experience, at a rate level commensurate with the services provided.”
With the goal of establishing the Hotel Madeline as the premier property in Telluride, and one of the top mountain properties in the U.S., Northview sounds like the right fit for the job.
Northview specializes in the management of full-service, upscale resort properties in seasonal markets, the company said in its statement announcing the acquisition, in particular in leveraging its proprietary set of management tools, systems, and unique processes to maximize peak season revenue, build shoulder season demand, and minimize off-season losses, while maintaining best-in-class guest and associate satisfaction.
Since forming in 2004, Northview has acquired over $800 million of lodging and real estate assets, and overseen renovation projects in excess of $145 million. Northview’s current portfolio includes fifteen properties ranging from small independent resorts to large urban branded hotels. The acquisition of Hotel Madeline marks Northview’s eighth acquisition in the last 24 months.
Apollo Global Management, the firm Northview has retained to manage the funds for this project, is a leading global alternative investment manager with offices around the world, and currently manages assets worth approximately $168 billion (as of June 30, 2014) in private equity, credit and real estate funds invested across a core group of nine industries.
In the statement, Northview’s founding partner, Mark Mance, said he believes Hotel Madeline to be one of the finest hotels in Colorado ski-county and he is delighted that it will join Northview’s collection of hotels and resorts.
“The on-property team has done a tremendous job re-establishing the hotel’s premier position in Telluride over the past year and delivering memorable experiences to its guests,” he is quoted saying. “We look forward to building on this success.”
“We have a lot of work to do to fully immerse ourselves in the Town of Telluride and Mountain Village, on-board the hotel team, build the right strategies and success measures for this tremendous property, and launch the residences for sale,” said Northview’s Senior Vice President Brent McLean in an interview. “We will seek considerable input from community members and the existing hotel team to meet our primary goal of ensuring the property is a considerable source of pride for everyone involved.”
He also took care to note that one of the primary reasons Northview will be seeking the community’s input is to ensure that the improvements to the hotel and its operation do not just benefit guests, but also all of the hotel’s current team members and the community as a whole.
Limited disruption to the hotel operation is expected while this work is carried out. The upgraded condominium residences will be released for sale as early as the 2014/15 winter season.