While Marriott, Hyatt, and Accor have spent years selling buildings to chase franchise and management fees instead, Peregrine Hospitality is running the opposite trade as an operating arm of private-equity firm KSL Capital Partners.
Peregrine Hospitality manages and asset-manages 64 hotels valued at $2.5 billion and all owned by KSL or its affiliates. It’s betting that being an owner-operator is an advantage in a sector with few natural moats.
“We don’t have a patented technology or a secret black box to create a competitive moat,” said Peregrine Hospitality CEO Greg Kennealey, comparing the hotel sector to tech and pharmaceutical companies that have proprietary intellectual property.
Every hotel the company runs typically faces 3 to 10 local rivals offering rooms with similar amenities, pools, and breakfasts.
Kennealey is wagering that disciplined operations will produce advantages in talent, branding, and ancillary revenue that