PM Hotel Group and Sightline Hospitality find common ground and join forces

PM Hotel Group and Sightline Hospitality recently announced a strategic merger that will drive the growth of PM Hotel Group’s lifestyle hotel division, Modus by PM Hotel Group, by integrating Sightline’s expertise in experiential travel and innovative property management. The new company will continue to operate under the name PM Hotel Group. A shared history and cultural fit between the two organizations paved the way for the merger, according to Joseph Bojanowski, president of PM Hotel Group, and Kirk Pederson, president of Sightline Hospitality ACCOMMODATION.

“We have known each other for quite some time, have served together on several industry advisory boards and councils, and there has always been a deep mutual respect for the achievements of each organization,” says Bojanowski. “So it became a friendship and a relationship, and it kind of evolved into, ‘Hey, maybe it’s better to combine the two than just the two.'” From a cultural perspective, both PM and Sightline are people-first companies, he says added. “One of the things we have in common from a cultural perspective is that both of our organizations have always focused on ensuring that performance is always aligned with opportunity. We have many top performers on both sides and this (merger) creates many opportunities for their performance to intersect with personal development. And we believed there was a truly complementary depth and level of talent within each of our organizations, without much overlap.”

From a business development perspective, the merger will not only strengthen PM Hotel Group’s lifestyle hotel division, but also improve Sightline’s operations through PM’s resources. “Lifestyle hospitality is here to stay, and this is where our business is growing,” Pederson affirmed. “And I think at Sightline we do a great job in independent and lifestyle hotels and operate in some very unique markets. But there wasn’t a day that I didn’t go to sleep thinking about how nice it would be to have these additional resources.” Bojanowski noted that these resources and services “include everything from risk management to insurance to sustainability to energy procurement and marketing… all of those things could be a force multiplier for (Sightline’s) experience and expertise, particularly in this experiential travel market.” And if you look at some of the larger management companies, that expertise just isn’t there in a lot of places. And to the extent that this is the case, it is not very scalable. With Kirk and the team he has assembled, it is unique in that regard.”

The merger with Sightline will add 22 properties to PM’s portfolio that are either open or scheduled to open in the coming months – mostly under the Modus brand – bringing the total number of properties to 85. In particular, the expansion diversifies the geography of the portfolio into mountainous regions along the West Coast and introduces PM’s first hotel in the Hawaiian Islands. Distinctive brands managed by Sightline will join the portfolio, including RESET, which offers immersive, nature-centric experiences, and evo Hotels, which combines urban comfort with easy access to outdoor activities. These brands particularly appeal to younger generations. “Every study done shows a pretty significant demographic shift from the majority of travelers to Baby Boomers to Millennials and Generation Z. And while Baby Boomers still spend more per trip, Generation Z is taking more trips, spending more overall and …” attaches great importance to an experience when traveling. So that matches the lifestyle and the experience side,” Bojanowski explained.

He added that the merger is an example of PM’s focus on thoughtful growth. “We are privately held and therefore are not under constant pressure to drive net growth in our units and squeeze every last dollar of profitability out of the management company. … We work with partners that we want to do business with so that we can ensure some consistency in those relationships and those revenue streams. And so we feel pretty good about where we are right now.”