Hotel operator Midas launches $100 million fund to build bigger projects
Press Room | February 21st, 2018

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 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, 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.