Ares Invests in Excel Group’s Premium Hotel Portfolio

Excel Group, an Arlington, VA-based real estate investment firm focused on hotel properties, has formed a strategic partnership with Ares Management’s Real Estate Secondaries funds to co-invest in a portfolio of eight Marriott- and Hilton-branded hotels.

The partnership aims to fuel the expansion of Excel’s hotel portfolio, which currently stands at 44 assets comprising 5,513 rooms across 14 states. This influx of (undisclosed) funds enables Excel to grow beyond its existing footprint, which already includes a mix of premium-branded, limited-service, and select-service hotels operating under flags like Hilton Garden Inn, Hyatt Place, and Courtyard by Marriott.

“Our collaboration with Ares combines significant capital resources and a deep understanding of the hospitality landscape,” said Shoham Amin, founder and principal of Excel Group.

Established in 2011, Excel Group has amassed around $1 billion in hotel real estate acquisitions over the years.

“We are excited to partner with Shoham Amin and the Excel team as we look to capitalize on continued favorable fundamentals across the limited and select service hotel segments,” said Jamie Sunday, co-head of Real Estate Secondaries at Ares Management.

Ares has been a key player in institutional real estate secondaries since 1996, pioneering the space by capitalizing on opportunities to buy or recapitalize existing real estate fund interests. In December 2023, the firm closed its ninth real estate secondaries fund with $3.3 billion in commitments.

Park Madison Partners served as the exclusive financial advisor on the transaction. Terms were not disclosed.