Knightstone Capital Management Inc. is excited to announce the formation of the Knightstone Hotel Group. Knightstone Hotels is a strategic partnership between Knightstone Capital Management and hotel industry veterans, Bill Stone and Deborah Borotsik.
Led by Stone as president, Knightstone Hotels will focus on the acquisition, development, and asset management of high-quality hotel assets in Canada and abroad. Stone brings a wealth of experience to Knightstone Hotels as one of Canada’s premier hotel advisors and consultants. Over the past 30 years, he has been involved in 350+ hotel transactions, valued at more than $6 billion, comprised of single asset and portfolio sales of both independent and branded properties.
Borotsik joins Knightstone Hotels, alongside Stone, as vice-president. Borotsik brings to Knightstone Hotels over two decades of sales, marketing, and underwriting experience in the Canadian hotel industry. Before joining Knightstone Hotels, she was vice-president of CBRE Hotels, where she was responsible for due diligence, strategic advisory, and valuation of transactions. Prior to CBRE, Borotsik worked at Colliers International, as well as Price Waterhouse and Laventhol & Horwath.
Both Stone and Borotsik are excited about their new venture with Knightstone Capital Management. “It’s something we wanted to do for awhile, and we couldn’t have better partners,” Stone told CLN. “The idea was conceived awhile ago. We do see great opportunities in the Canadian landscape to acquire assets.” The two of them have worked together for 22 years at Colliers and CBRE. Both also worked at Laventhol and Horwath, but at different times.
“It’s been super busy and super exhilarating,” said Borotsik. “It’s exciting because we’re starting something new, right from scratch. It’s our vision — we’re creating something.”
“Bill is an icon within the Canadian hotel landscape, and, coupled with Knightstone’s hospitality and development expertise, we will be exceptionally positioned to establish and grow a successful hotel portfolio to augment our existing asset base. Bill brings immense experience in skillfully structuring and negotiating hotel transactions. Having worked with him closely over the past 10 years, we are excited to launch this new venture and harness Bill’s vast expertise to position Knightstone Hotels as an industry leader,” said Alan Perlis, president of Knightstone Capital Management.
“We believe in the long-term potential of the Canadian hotel industry. Our relationship with Knightstone has complementary synergies and the united goal of acquiring and developing a portfolio of significant urban assets. We look forward to helping Knightstone accelerate its growth in the lodging sector,” said Stone.
Founded two decades ago, Knightstone has developed different asset classes, including academic, residential and retail. They currently have one hotel, the Sheraton Gateway at Toronto Pearson Airport which they purchased in 2019.
“[Knightstone Capital Management] has strong technical knowledge of asset classes outside of hospitality, as well as very strong relationships,” said Stone. “Our strengths are our knowledge and relationships in the hotel sector, plus a firm understanding of the processes of the hospitality business in Canada.”
“We can pull on our experiences — we have so much knowledge to draw on,” said Borotsik.
Knightstone Hotels is now starting to look at assets, concentrating on larger assets on the full-service side in major markets. “We do like airport hotels and in-terminal hotels, and we will be looking at in-terminal properties right across North America and Europe,” Stone said, adding that the initial focus will be on Canada.
Although Stone expects that business will be slow over the next few months, they have already had some owners contact them directly regarding assets. “I think we will have more to look at come early next year,” he said.
Before joining Knightstone Hotels, Stone was the executive vice-president of CBRE Hotels, where, since 2010, he established and led one of the largest hotel brokerage and advisory firms in Canada. Stone is well versed in complex transactions laden with brand, management, land leases, and rights of first refusal. He is an industry resource when assessing hotel values, and during management contract and franchise agreement negotiations. He also worked as a hotel real estate advisor for two decades before CBRE at Colliers International and Laventhol & Horwath. Additionally, Stone sits on the board of directors for the York School and chairs its Premises Committee.
Founded in 2001, Knightstone Capital Management Inc. is a Toronto-based real estate development firm focused on developing and managing assets that produce long-term cash flow through long-term ownership. Knightstone currently manages a portfolio of investment properties valued in excess of $1 billion with a concentration on hospitality and academic assets.