©2022 Saratoga Photographer.com
By Paul Post
In 1999, a Rochester-based company passed up an opportunity to build a hotel in Saratoga Springs, just when the Spa City was arguably becoming the hottest year-round resort destination in upstate New York.
But that company, DelMonte Hotel Group (DHG), never lost interest in the market, which it entered last year by acquiring the downtown Hampton Inn & Suites at 25 Lake Ave. Now the group has strengthened its local presence by purchasing the 113-room Homewood Suites by Hilton on South Broadway, in partnership with XSS Hotels of Hooksett, N.H.
Alex DelMonte, DHG president and chief executive officer, said plans call for a light renovation of the Homewood Suites, but a major overall of the Hampton Inn beginning next fall. “The scope of the renovation will touch all areas of the hotel allowing the Hampton to remain the premier downtown hotel for those traveling to Saratoga,” he said. “DHG is excited to be the owner and manager of the two premier properties in Saratoga.”
DHG now owns or co-owns six Capital District hotel properties, with three more in Albany and one in Troy, joining a portfolio that stretches to Pittsburgh and Cleveland as well.
“There’s a significant increase in the awareness of the rich history and cultural hotspots the Capital District has to offer,” said DelMonte. “This has driven demand for quality hotels that are in close proximity to these attractions for visitors.”
DelMonte declined to disclose the Homewood Suites sale price, which would include the business, furniture and equipment. But published reports say the real estate was acquired for $15.25 million and that DHG is responsible for an $18.7 million consolidated mortgage.
The four-story Homewood Suites was purchased from Latham-based Turf Hotels and Pioneer Companies of Syracuse. It has 56 studios suites, 53 one-bedroom suites and four two-bedroom suites, each with an in-suite kitchen complete with a full-size refrigerator, sink, dishwasher, microwave, cooktop, cooking utensils and place settings.
Onsite amenities include an indoor swimming pool, fitness center, outdoor basketball court, outdoor patio with a fire pit, business center and guest laundry. The hotel also has more than 490 square feet of event space.
DHG bought the downtown Hampton Inn & Suites, including a two-story parking garage, from Turf Hotels and co-owner Frank Parillo for $28.25 million.
Having two hotels in close proximity allows the properties to share staff, as needed, because the hospitality industry like many other businesses has been greatly impacted by a severe nationwide labor shortage.
“There’s no question the hospital industry took a hard hit at the height of COVID,” DelMonte said. “We’ve been working on the best solutions and new ways to address staffing challenges to ensure our hotels can continue to provide the service our customers deserve and expect.”
DHG’s first hotel in the Capital District was the Fairfield Inn & Suites by Marriott, which opened at 169 Wolf Road in January 1996. A year later the Courtyard by Marriott Albany Thruway opened at 1455 Washington Avenue.
In September 2018, DHG expanded to Troy by opening the Courtyard by Marriott Albany-Troy/Waterfront at 515 River Street. Then it built a second hotel near Albany International Airport, at 227 Wolf Road, a Courtyard/Residence Inn that opened in October 2019.
“We are always open to new possibilities in the market,” DelMonte said. “We expect that we will have exciting news to share regarding additional acquisition opportunities in the near future.”
DelMonte was one of the first Marriott franchises and has grown from a single full-service hotel in 1973 to a portfolio that now includes 16 hotels in addition to a spa and several restaurants and event venues.
XSS Hotels owns numerous hotels in New Hampshire, Maine, Massachusetts, New Jersey and New York.