Hotel operator Midas launches $100 million fund to build bigger projects

By Brian Feldt St. Louis Post-Dispatch Feb 9, 2018

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Midas Hospitality, a growing hotel operator in the St. Louis area, has plans to raise up to $100 million to help fund future acquisitions and development.

The money raised will be deployed in key markets such as Charlotte, N.C., Dallas, Atlanta, Denver and St. Louis, and help accelerate future growth. Midas, along with an affiliated development firm called MC Hotel Construction, separately reported a combined $137.7 million in revenue in 2017, a 40 percent increase over 2016.

Established in 2006, Midas has developed approximately $500 million worth of hotel properties across 14 states. The company is behind two high-profile projects soon to begin in midtown — the $25 million, 153-room Element by Westin on the site of the current Habitat for Humanity St. Louis headquarters at 3763 Forest Park Avenue, and the $28 million, 129-room Aloft Hotel in Cortex at 4245 Duncan Avenue. Habitat for Humanity St. Louis is moving its headquarters to a former grocery store property at the corner of South Grand Boulevard and Chippewa Street in south St. Louis.

Midas also recently opened the $25 million dual-branded Residence Inn and Fairfield Inn & Suites by Marriott in Maryland Heights in January.

The new fund, said co-founder and managing member J.T. Norville, is a “unique vehicle for our investors in St. Louis.” Approximately $5 million of the total fund has been raised to date, Norville said.

“There are other real estate funds in St. Louis, but none that are strictly focused on the hotel sector,” he said. “With that type of capital, we’ll be going after bigger projects moving forward.”

U.S. hotel transaction volume is expected to remain flat around $28 billion in 2018, according to research from real estate firm JLL. JLL found an increase in buying activity from private equity and institutional investors — more than 70 percent of hotel transactions worth $45 billion were acquired by such investors, up from 62 percent in 2014.

Revenue per available room (RevPAR) and average daily rate (ADR) — two key metrics watched closely by industry experts — have risen in the St. Louis market from $73.55 and $108.18, respectively, in fiscal 2016 to $76.01 and $111.85 in fiscal 2018, according to data from the St. Louis Convention and Visitors Commission. Occupancy rates, meanwhile, have remained about flat.

Midas, with nearly 900 employees nationwide, has steadily increased revenue over the last decade to $79.4 million in 2017. The MC Hotel Construction affiliate, which shares an office building in Maryland Heights with Midas, has grown rapidly since being founded in 2013 from just $1 million in its first year to $58.3 million last year.

Both companies actually leveraged the economic recession between 2008 and 2010 to grow.

“We started at an ideal time,” said Midas co-founder David Robert. “We didn’t have any old, ugly assets in our portfolio that would have to suffer through the recession, and we also had the opportunity to find some opportunities to buy assets low.”

Robert said Midas is on track to grow into a 50-hotel portfolio company by 2020 with enterprise-wide revenue of $270 million and more than 1,500 employees.

Gary Andreas, a hotel analyst with H&H Consulting, said Midas’ growth trajectory is similar to Drury Hotels, the St. Louis-based firm founded in the early 1970s that has more than $500 million in annual revenue.

“Drury got started as a construction company and then started building limited service hotels,” Andreas said.

Andreas said investors for hotels typically seek a company ready to act on several projects at once. “Midas has made that commitment and they’ve got the staff in-house to start on considerably larger properties than a lot of pure property management ownership companies do,” he said.

$25M Dual-Branded Marriott Hotel Opens in Maryland Heights, Missouri


MARYLAND HEIGHTS, MO. — Midas Hospitality has opened Residence Inn and Fairfield Inn & Suites by Marriott in Maryland Heights, about 20 miles northwest of St. Louis. The $25 million project is Marriott’s first dual-branded hotel in the St. Louis area. The 119,000-square-foot property is located at 11918 Westline Industrial Drive, formerly home to Clayton Engineering. The hotel includes 96 rooms for the Residence Inn and 88 rooms for the Fairfield Inn & Suites. The property features a fitness center, indoor pool, meeting rooms, guest laundry facilities and backyard seating areas with a grill and pergola. Midas Hospitality will manage the hotel, which was built by sister company MC Hotel Construction.

Groundbreaking Ceremony Held for Home2 Suites in Kansas


A groundbreaking ceremony was recently held for Home2 Suites by Hilton, a 123-room extended-stay-hotel in Overland Park, Kansas. Located at 7121 W. 135th St., the new 65,000-square-foot four-story all-suite hotel will be completed in late 2018.

Midas Hospitality, a premier hotel management group, will develop and manage the $16.5 million hotel. The general contractor is Thomas Construction, which specializes in new hotel construction and renovations. The architecture firm is Gray Design.

Home2 Suites will offer fully equipped kitchens, state-of-the-art fitness center, business center, indoor pool, outdoor living area all in a pet-friendly environment.

“This is our third hotel in the Kansas City area, and we are proud to be a part of the growing Overland Park community,” said J.T. Norville, Co-Founder of Midas Hospitality.

Founded in 2006, Midas Hospitality has developed, opened and currently manages numerous properties including 40 hotels in 14 states. The company serves global brands including Hilton, IHG, Marriott, and Starwood. Midas Hospitality’s headquarters are located at 1804 Borman Circle Dr. in Maryland Heights, Mo. For more information, call (314) 692-0100 or visit http://www.midashospitality.com.

Legacy Suites Opens New Hotel in South Carolina – Managed by Midas Hospitality

Legacy Suites recently opened at 1835 Canterbury Glen Lane in Rock Hill, S.C. The $11 million 64,000-square-foot hotel is four stories and includes 115 all-suite rooms with fully-equipped kitchens. This is the second Legacy Suites hotel in the country. The first one is located in Donaldsonville, La. A third Legacy Suites, which will have 107 all-suite rooms and cost $11.5 million, will open in the summer of 2018 at 1011 Woodruff Rd. in Greenville, S.C.

General Manager Michael Williams said Rock Hill was selected for Legacy Suites’ second hotel location because “our company wants to support and be a part of the area’s continuous business growth.”

Legacy Suites, which offers modern and spacious studio suites, features an all-inclusive extended stay experience complete with kitchen and full size appliances. Additional amenities include a gathering room, fitness center, laundry facilities, and a backyard seating area with barbecue grills and a picnic area.

“Legacy Suites are an excellent option for extended stay travelers who are looking for comfort and a wide array of amenities,” said Williams. “We look forward to joining this community with our newest property, which is perfectly situated in order to accommodate the growing area.”

Midas Hospitality, a premier hotel management group, is managing the hotel. Sister company MC Hotel Construction, a general contractor specializing in new hotel construction and renovations, built the hotel.

Founded in 2006, Midas Hospitality has developed, opened and currently manages numerous properties including 40hotels in 14 states. The company serves global brands including Hilton, IHG, Marriott, and Starwood. Midas Hospitality’s headquarters are located at 1804 Borman Circle Dr. in Maryland Heights, Mo. For more information, call (314) 692-0100 or visit http://www.midashospitality.com.

MC Hotel Construction, which is also located at 1804 Borman Circle Dr., specializes in hotel construction and renovations with projects currently underway in six states. MC Hotel Construction builds for leading brands such as Hilton, Marriott, IHG, Starwood and Legacy Suites. For details, call (314) 339-6600 or visit http://www.mchotelconstruction.com.

Midas Hospitality breaks ground on $28 million development in Minnesota

The development will consists of two hotels, including a 100-room Hampton Inn and a 107-room Home2 Suites. The hotels will open in the summer of 2018.