UNITE HERE releases updated list of responsible, irresponsible private equity real estate managers
UNITE HERE has released the third update to its List of Responsible and Irresponsible Private Equity Managers in the hospitality industry to help staff and trustees of pension funds and other institutional investors in their due diligence of fund managers.
New additions to the list of Responsible managers include GEM Realty and Wheelock Street for proactively engaging with UNITE HERE and its partners on labor issues. Blackstone Group and Rockpoint Group remain on the list and continue to be leaders in partnering with UNITE HERE in their hospitality portfolios.
New additions to the list of Irresponsible managers include Brookfield Asset Management, CBRE Global Investors, and Lowe Enterprises who have refused to engage with UNITE HERE and their own limited partners to find amicable resolutions to current labor disputes.
Many institutional investors have adopted or are considering Environmental, Social and Governance (ESG) policies to help guide their investment decisions. Increasingly, ESG principles are being applied to asset managers, including real estate funds.
UNITE HERE created this list in 2015 to help pension funds and other institutional investors identify socially responsible investment partners and steer clear of private equity managers with labor disputes that could impact their returns. In creating the list, UNITE HERE analysts used several criteria to evaluate private equity managers, including responsiveness to outreach, labor disputes at hospitality properties or portfolio companies, and track record of ensuring labor peace at hospitality properties or portfolio companies.
Responsible managers are managers that have reached an agreement ensuring labor peace at hospitality-related properties or companies, creating a basis for cooperation.
Irresponsible managers are managers that have refused multiple requests to meet, have failed to enter into a labor peace agreement or failed to resolve a labor dispute at a hospitality-related property or portfolio company.