The Redstone Companies, L.P. is a Texas limited partnership representing a diversified investment management company specializing in hospitality, real estate and private equity.
Redstone was formed in the late 1980s, to capitalize on the struggling economy's effects on properties that otherwise showed growth potential in their long-term value. From the outset, the company demonstrated remarkable strengths in identifying, acquiring, recapitalizing and refurbishing underperforming assets. Redstone then installed management teams to turn the businesses around with great success. This strategy is characterized by Redstone's investments in hotels (The Houstonian Hotel, Club & Spa "The Houstonian"; The Westchase Hilton and The Hyatt Regency Austin) and banks (Northwest Bancorporation, Inc., and two other banks acquired through Northwest Bancorporation which were subsequently combined and sold) - two industries that were particularly hard hit during this time.
Redstone's early investment activities also included acquiring and managing regional commercial banks. After several successful operations in that sector, Green Bank is now the only bank in which Redstone and its partners maintain significant ownership positions.
By the mid-1990s, ever vigilant to lead market trends in an improving economy, Redstone maintained its opportunistic style of private equity investing by focusing on select, high quality transactions unearthed through its superior deal flow network. Investments were sourced through Redstone's proprietary relationships with the commercial banks, as well as members of the various Redstone-owned-and-operated businesses. These investments include specialty finance (SierraCities.com, Inc.; Future Financial Corp.), restaurants (Cafe Express, Cafe Annie and Taco Milagro), hotel/conference resort management, quick serve franchise restaurants (Whataco, Inc.) and real estate (Camden Property Trust).
Because of Redstone's expertise in complementary areas such as hospitality and real estate, the company became involved in golf course development and management in the late 1990s. The courses were developed on distressed properties acquired in the 1980s. Redstone's golf portfolio includes Shadow Hawk Golf Club, Redstone Golf Club (home of the PGA Tour Shell Houston Open), The Houstonian Golf & Country Club (home of the LPGA Tour Championship), and BlackHorse Golf Club.
Strategic locations and first-class development are the hallmarks of Redstone's real estate investment strategy. To further solidify its presence in the marketplace, Redstone moved into its 150,000 square-foot Class A office building on the campus of The Houstonian in 1999. The Redstone Building houses The Redstone Companies as well as a select group of third party tenants.
Redstone believes a common theme across all its investments, and a key factor to its historical and continued success, is the firm's adherence to identifying and improving value.
