Apart-hotel company Kasa has entered into a strategic combination with residential hospitality provider Mint House, through which Kasa will integrate its portfolio of nearly 1,000 units nationwide, according to a Wednesday announcement.
The combination — representing a cashless, all-equity combination, Kasa CEO Roman Pedan told Hotel Dive — will expand Kasa’s footprint in “multiple high-growth, premier markets,” including Washington, D.C.; Dallas; Nashville; and St. Petersburg and Tampa, Florida, according to a release.
The deal comes as hospitality brands increasingly turn to consolidation to grow scale in the apartment-style accommodations sector.
A ‘maturing’ sector
The combination “is proof that the alternative accommodations sector is maturing,” Pedan told Hotel Dive. “As the category evolves, owners are prioritizing disciplined operators with the infrastructure and processes to perform consistently across market cycles.”
The move follows other recent brand tie-ups in the apartment-style accommodations sector, including Marriott International’s now-defunct strategic licensing agreement with Sonder as well as Wyndham Hotels & Resorts’ partnership with Reside. Last year, Mint House acquired Locale to “drive greater scale, efficiency, and an enhanced offering for all guests,” Mint House CEO Christian Lee said in a previous statement.
In 2024, Lee — who will now join Kasa as a senior advisor, per the release — told Hotel Dive that consolidation was not then on the table for Mint House, though the company would “definitely explore” opportunities as they arose.
‘Strong value creation’
For this latest deal, Mint House “ran a comprehensive strategic process and selected Kasa because the combined platform delivers clear benefits: deeper operational expertise, stronger commercial capabilities, and a more resilient operating model for owners,” Pedan said.
Though Lee could not be reached for comment Wednesday, he said in the release that Kasa and Mint House “have always been aligned in our asset-light models and guest-centric operating philosophy.” As such, the companies’ “shared focus on operational excellence is why [Mint House] chose Kasa for this transaction,” Lee said.
According to Pedan, the combination will be “immediately and meaningfully EBITDA-accretive” to Kasa, strengthening the company’s balance sheet and overall financial position. Pedan declined to disclose detailed return metrics but said he anticipates “strong value creation driven by scale efficiencies, operating leverage, and improved unit economics.”
Kasa will take over properties including the landmark 70 Pine building in Lower Manhattan, an Art Deco tower with a fitness center, a gourmet market and the Michelin-starred restaurants Crown Shy and SAGA.
In line with Kasa’s existing portfolio, the properties will offer mobile-first check-in, 24-hour guest communications and a “convenient, thoughtfully-designed” experience, per the release.
Initially, the Mint House properties will operate under the Mint House by Kasa brand, Pedan said, with further brand positioning being evaluated over time as part of a broader portfolio and customer strategy.
In terms of future M&A activity, Pedan said Kasa is “only pursuing it where there are strong strategic reasons to do so.”
Kasa recently took over several Sonder properties in the wake of the accommodation provider’s abrupt November bankruptcy.
