Aparthotel company Kasa is buying luxury residential hospitality operator Mint House.
Mint House and its nationwide portfolio of nearly 1,000 units will join Kasa’s 85 properties of apartment and hotel units. That includes Mint House’s flagship property, 70 Pine in lower Manhattan, which will be known as Mint House at 70 Pine by Kasa.
The price of the deal was not disclosed, but KASA founder and CEO Roman Pedan said via email it was a cashless, all-equity combination. The deal is immediately and meaningfully earnings before interest, taxes, depreciation and amortization-accretive to Kasa, strengthening its balance sheet and overall financial position, he said.
The deal has already closed, and integration should be complete by the end of January.
Mint House had 22 properties prior to the deal, and Kasa will onboard a majority of them, Pedan said.
"We are closing properties where the contract type didn't fit our strategy or the quality standard didn't meet our quality bar," he said.
Initially, the Mint House properties will operate under the Mint House by Kasa brand, he said. Over time, the company will evaluate brand positioning as part of the broader portfolio and customer strategy.
"We expect our combined scale to deliver meaningful operating efficiencies and stronger commercial outcomes for owners,” Pedan said in the news release announcing the deal. “We’re thrilled to welcome Mint House’s buildings, owners and guests into the Kasa network.”
Mint House CEO Christian Lee will take the role of senior advisor at Kasa to help with the transition.
“Kasa and Mint House have always been aligned in our asset-light models and guest-centric operating philosophy,” Lee said in the release.
The combination of both companies will create scale to drive down costs while also strengthening Kasa’s commercial capabilities and expand its platform even further, according to the news release. It will also improve multiple elements of its operations, including distribution, revenue management and more.
To date, Kasa has completed 35 hotel and aparthotel management transitions in the U.S. Its operational model is like third-party hotel management companies in that it signs management agreements with property owners as opposed to master leaseholds.