RH Becomes a Partner of the Premier Real Estate Portfolio in Aspen
06 January 2021 - 8:05AM
Business Wire
Aspen Selected to Develop the First RH Ecosystem, Inclusive
of an RH Gallery, RH Guesthouse, RH Bath House & Spa, RH
Restaurants and RH Residences
RH (NYSE: RH) announced today the Company is making an initial
equity investment of approximately $105 million in connection with
real estate development initiatives in Aspen, Colorado. 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 our 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. The RH
Residences at the Historic Boomerang Lodge will include up to five
fully furnished four bedroom custom homes, and The RH Residence on
Red Mountain will be a fully furnished six bedroom home with
multiple terraces and an infinity pool with views of downtown,
Aspen Mountain and Independence Pass. All of the RH Residences will
include membership to the RH Bath House & Spa, plus priority
reservations at the brand’s restaurants and private dining
venues.
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.
ABOUT RH
RH (NYSE:RH) is a curator of design, taste and style in the
luxury lifestyle market. The Company offers its collections through
its retail galleries across North America, the Company’s multiple
Source Books, and online at RH.com, RHModern.com,
RHBabyandChild.com, RHTeen.com and Waterworks.com.
FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements within the
meaning of the federal securities laws, including statements
regarding the foregoing: our expectations regarding the real estate
development opportunity in Aspen and the benefits of the RH
ecosystem initiative, including that it will ultimately result in
retail locations, hospitality concepts, residential developments,
and workforce housing projects; the offerings and features of the
branded elements of the ecosystem including The RH Gallery on
Galena, The RH Guesthouse at the Historic Crystal Palace, The RH
Bath House & Spa, The RH Residences at the Historic Boomerang
Lodge, and The RH Residence on Red Mountain; our belief that Aspen
represents a singular opportunity to elevate the RH brand; our
belief that the education the Company will gain from a real estate
development and ownership perspective will be immeasurable as the
RH brand builds its global ecosystem of products, places, services,
and spaces; our plans to operate the RH branded businesses as part
of the Aspen ecosystem and to be a real estate investor and partner
for the remaining properties; our expectation regarding an initial
equity investment of approximately $105 million and the potential
need for additional equity or other investment by RH; our
anticipating timing for the opening of 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; and
any statements or assumptions underlying any of the foregoing, and
similar statements. You can identify forward-looking statements by
the fact that they do not relate strictly to historical or current
facts. We cannot assure you that future developments affecting us
will be those that we have anticipated. Important risks and
uncertainties that could cause actual results to differ materially
from our expectations include, among others, risks related to the
global outbreak of the COVID-19 virus and its impact on our
business; risks related to civil unrest; risks related to general
economic conditions and the housing market as well as the impact of
economic conditions on consumer confidence and spending; changes in
customer demand for our products; our ability to anticipate
consumer preferences and buying trends; consumer spending based on
weather and other conditions beyond our control; risks related to
the number of new business initiatives we are undertaking; our
ability to obtain our products in a timely fashion or in the
quantities required; risks related to our sourcing and supply chain
including our dependence on imported products produced by foreign
manufacturers and risks related to importation of such products, as
well as those risks and uncertainties disclosed under the sections
entitled “Risk Factors” and “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” in RH’s most
recent Form 10-K and Forms 10-Q filed with the Securities and
Exchange Commission, and similar disclosures in subsequent reports
filed with the SEC, which are available on our investor relations
website at ir.rh.com and on the SEC website at www.sec.gov. Any
forward-looking statement made by us in this press release speaks
only as of the date on which we make it. We undertake no obligation
to publicly update any forward-looking statement, whether as a
result of new information, future developments or otherwise, except
as may be required by any applicable securities laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20210105005937/en/
PRESS Chelsea Allen, callen@RH.com
INVESTOR RELATIONS Allison Malkin, 203-682-8225,
allison.malkin@icrinc.com
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