The Team at Hotel Equities, Stoneridge Mountain Resort

By Amy Bostock

The post-pandemic landscape for hotel management has become more competitive, with owners and investors seeking partners who can not only maximize asset value but also navigate uncertainty and change. 

“The need for agility, innovation, and a strong understanding of local, regional and global trends is more critical than ever,” says Martin Stitt, SVP of Operations, Hotel Equities (HE). “Contracts have adapted to reflect this new reality. There’s a stronger focus on flexibility and more performance-based management fees tied to key metrics like RevPAR and GOP. Hotel owners seek out partners with a track record attracting and retaining talent, delivering guest satisfaction, exceeding brand standards, and growing profitability in fluctuating market conditions.”

Over the past three decades, HE has evolved into one of the leading third-party hotel management companies in North America, managing more than 250 properties across the U.S. and Canada. Its Canadian portfolio showcases properties ranging from full-service hotels to limited-service and extended-stay brands.

Stitt says HE’s strong relationships with the top-tier brands such as Marriott, Hilton, IHG, Choice, Wyndham, along with independents, has been a cornerstone of the company since it was founded in the U.S. in 1989 by Fred Cerrone. In 2018, the company expanded into Canada with the addition of its first two Canadian properties — Alberta-based Fairfield Inn & Suites by Marriott Edmonton North and TownePlace Suites by Marriott Edmonton South. The move marked a significant milestone as HE built a regional team of experts in market and implemented its operational platform in Canada. 

At the core of HE’s business model is the recognition that management-based fees and length of contracts cannot be one-size-fits-all. “We certainly have minimums, but we recognize that every hotel asset is unique, with its own set of market conditions and opportunities,” says Stitt. “As such, we take a customized approach to each agreement. Our goal is to create terms that are mutually beneficial, aligning with both the owner’s objectives and our commitment to driving performance and value. We believe in fostering long-term partnerships, and we know that starts with flexibility but also alignment in vision.”

He adds HE’s primary goal is to add immediate value from Day 1 of assuming management of a hotel. 

“We bring value to an asset by leveraging our team’s extensive market knowledge, industry connections, and expertise in operational and financial management. Our centralized systems, procurement programs, and added corporate support resources allow us to reduce costs, enhance revenue streams, and optimize the performance of each property in our portfolio. We also rely heavily on data using BI tools that allow us to make real-time informed decisions that align with the property owner’s vision and goals. Our entry into Canada was based on these principles.”

With the recent opening of Moxy Halifax Downtown and the Courtyard Nanaimo, HE has expanded its presence from coast to coast and highlighted its commitment to growing strategically across the country. Opening soon in Ontario are the Tru by Hilton Oshawa and TownePlace Suites Woodstock and there are several lifestyle branded projects under development contracts, including in Vancouver and Vaughan, Ont.   

“We’re focused on expanding in both urban and suburban markets across Canada, particularly in Ontario, B.C. and Alberta,” says Stitt. “These regions offer strong growth potential due to their economic diversity, thriving tourism sectors and strategic importance in both domestic and international travel markets. Atlantic Canada also presents an opportunity with our introduction of the Moxy brand to Halifax.”

From a market share perspective, HE Canada is running over 110 RPI YTD in 2024.  While dropping interest rates should help occupancy as 2025 progresses, Stitt says overall, the company will see modest sales growth of 2.5 per cent to three per cent in 2025.

In terms of asset performance, he says extended-stay properties and select-service hotels have shown remarkable resilience and strong performance. “With travel patterns changing, these assets cater well to guests looking for longer stays, flexible booking options, and amenities that suit both business and leisure travellers. Regional resort markets have all also continued to perform very well. Full-service hotels in certain urban markets have faced a slower recovery due to reduced corporate travel and event restrictions but over the past 12 months are seeing steady improvement.” 

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