Montage Hotels & Resorts LLC in Irvine said a real estate fund affiliated with Ares Management LP in Los Angeles will buy up to 20% of the company and “provide up to $200 million in future growth capital” to acquire and develop properties.
Montage operates resorts under the Montage name and urban “lifestyle” hotels under the Pendry name. It has five resorts open, along with resorts and hotels in various stages of development for both brands.
The first Pendry is scheduled to open in San Diego this year; Ares had already invested in the project. Montage signed a deal in November to manage a $60 million hotel being built in Baltimore that could become a Pendry, and it has been looking to operate one in downtown Los Angeles.
Founder and Chief Executive Alan Fuerstman owns the largest Montage stake; eBay founder Pierre Omidyar also is a partner in the company via his Ohana Real Estate Investors LLC. Ares will own the third-largest chunk of the firm, news reports said.
—Paul Hughes
