Seattle Hospitality Group makes 'very significant' strategic investment in Kenmore Air

This article originally appeared in the Puget Sound Business Journal.

Seattle Hospitality Group has made a significant "strategic investment" in Kenmore Air, the largest seaplane airline based in the United States.

The two family-owned companies closed their deal Friday morning. They declined to disclose any of its terms.

However, SHG Chairman and Founder Howard Wright described it as "a very significant position in the company that allows the us work together on equal footing."

"I've been a customer of theirs for 40 years and have always admired the role that they have in the industry and in the community," Wright said. "I'm an investor. They're operating the company. I have a very long-term investment horizon, probably of 50 years."

Kenmore CEO Todd Banks said after 70 years, his family-owned business needed more expertise.

"Our priorities remain the same — safely deliver a unique, world-class flight experience, and reliably connect people throughout the Pacific Northwest and British Columbia," Banks said.

SHG is a private company that owns or holds interests in hospitality, tourism and transportation companies in Washington, Oregon, California and Hawaii. The company has 400 employees and revenues topping $100 million.

Kenmore Air was founded in 1946 and and employs between 130 to 180 people, depending on time of year. Kenmore Air flies more than 90,000 passengers a year in its fleet of 24 deHavilland Beaver and Otter aircraft that can often be seen taking off and landing on Lake Union and Lake Washington.

The airline provides scheduled flights to more than 45 water-based destinations throughout the Pacific Northwest and British Columbia. It also offers charter flights to smaller harbors and lakes.

The companies praised their new partnership, saying key synergies will be possible as both operate in Pacific Northwest travel and tourism sector.

Wright said discussions about a deal started two years ago, after he and Banks realized "how much we have in common, our shared visions and hopes for the future."

Wright said members of the Seattle-area families behind SHG and Kenmore, which he called "a beloved brand with a stellar management team," have known each other for a very long time.

"Our grandfathers were connected. Todd Banks' grandfather started the company and my grandfather was a client, and we've known each other ever since," Wright said. "What this deal does is that it brings together like-minded people, like-minded operators and a chance to have a sounding board outside one's immediate family."

Wright likened the deal to inviting a neighbor or dear friend over to dinner and seeking advice on important issues.

"They are a fantastic three-generation company, and they're looking forward to having a fresh set of eyes and a thought partner," Wright said.