PHILOSOPHY

We are value investors in hotel properties with turnaround potential and strong fundamentals for profitable growth. We focus on delivering superior investor returns through:

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We acquire hotel properties that are trading below intrinsic value as a result of:

Location

Property is located in neighborhoods or markets that are currently in transition.

Renovation

Brand standards or property needs require a renovation beyond owner’s budget.

Brand Fit

The market has evolved and the brand choice is a suboptimal fit for current consumer demand.

Complexities

The seller is confronted with special situations that complicate or make ownership less than optimal, including but not limited to partnership issues, family issues, financial hardships, retirement age.

CRITERIA

Our main focus is on properties that are or can be converted to select service or lifestyle properties. We seek properties that have the potential to attract the ideal mix of leisure, business, group demand and are most likely to lead to profitable growth.

Our investment criteria prioritize properties based on:

Location

Properties are situated in underappreciated locations with improving fundamentals that are poised for robust growth over the upcoming decade.

Value

Properties are traded, as defined by acquisition price plus renovation budget, below their intrinsic value, as defined by the replacement cost or current sales prices of comparable properties in the market.

Upside

Properties are suited for a strategic repositioning as a destination for millennial, creative travelers through a combination of significant renovation, rebranding for an optimal brand-market fit, and management turnaround.

MANAGEMENT


EDGE

Pipeline

Proactive approach to sourcing, with unique focus on locations, brands, star-ratings.

Screening

Creative, unencumbered assessment of potential by leveraging technology, big data.

Underwriting

Thorough, conservative underwriting, always seeking to out-research the competition.

Fundraising

Low deal costs and fees, proactive about deal-by-deal financing.

Closing

Nimble in moving negotiations to closing, while maintaining a principal perspective towards all stakeholders.

VALUE

Our focused approach enables us to provide investors with a unique value proposition.

Return

Creative hotel concepts with significant risk-adjusted return upside.

Low Fees

Low cost, low fee investment opportunities in hotel space.

Growth

Positioning for high-growth markets with a focus on millennials.

Expertise

A high performing team with extensive hotel investment expertise.

Risk Mitigation

Upfront about risk and detailed about specific mitigants.