Restoration Hardware Invests $105M in Aspen Portfolio
Restoration Hardware (RH), a curator of design, taste and style in the luxury lifestyle market, announced it is making an initial equity investment of approximately $105 million in connection with real estate development initiatives in Aspen. The investment includes properties that will be developed into retail locations, hospitality concepts, residential developments, and workforce housing projects.
Aspen has been selected to develop the first RH ecosystem inclusive of an RH Bespoke Gallery, RH Guesthouse, RH Bath House & Spa, RH Restaurants, and the first RH Residences. The RH Gallery on Galena, currently under development, will offer two floors of the RH Interiors, Contemporary, Modern, and RH Ski House collections, plus Interior Design, Architecture, and Landscape Architecture services. Additionally, the Gallery will include a transparent glass rooftop restaurant with views of Aspen Mountain, a Wine & Barista Bar, plus two private dining rooms with fireplaces and retractable roofs. The RH Guesthouse at the Historic Crystal Palace, also currently under construction, will feature guest suites with fireplaces, a live fire restaurant, wine vault, private rooftop pool and dining terrace with views of Aspen Mountain, and the brand’s first RH Bath House & Spa.
Gary Friedman, chairman & CEO of RH commented, “We believe Aspen represents a singular opportunity to elevate the RH brand by exposing the world of RH to the world’s most affluent and discerning customers in a single, walkable market.” Mr. Friedman continued, “Additionally, we believe the education RH will gain from a real estate development and ownership perspective will be immeasurable as the brand builds its global ecosystem of products, places, services, and spaces.” Mr. Friedman concluded, “We have long admired the community of Aspen, and are sensitive about designing experiences that respect and retain the town’s unique historical character and charm.”
The equity investment by RH is being funded from its existing cash balances. The company plans to operate the RH branded businesses mentioned above as part of the Aspen ecosystem and to be a real estate investor and partner for the remaining properties.
Commencing with its Form 10-K filing for fiscal 2020, RH will provide, as part of its ongoing reporting of its results of operations, additional information that enables investors to track the financial results of its real estate development investment activity separated from its other business operations.
RH currently plans to open the RH Gallery on Galena, and the RH Guesthouse at the Historic Crystal Palace, which will include the company’s first RH Bath House & Spa, in 2022.
Image courtesy of RH