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:
Redevelopment
Renovation of physical property to optimal, modern standards.
Rebranding
Contract with a stronger brand or reposition the property to an independent hotel.
Turnaround
Management reorganization through new additions of talent and expertise.
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.
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.
Pipeline
Focus on markets that are attractive to millennials and experiential travelers.
Screening
Innovative mix of traditional and technology driven approaches.
Due Diligence
Extensive property diligence to ensure risk mitigation.
Underwriting
In-depth analysis, looking to out-research competition.
Closing
Stakeholder centric approach to drive fast to successful closing.
Portfolio Management
Portfolio Management
MANAGEMENT
Proactive
Proactive asset management and collaboration with operator to maximize value creation.
Risk Mitigation
Continuous effort to mitigate risks at property and portfolio levels by proactively interacting with management.
Reporting
Detailed and transparent institutional quality reporting at both asset and portfolio level.
Investor Events
Regular events with thought leaders to discuss latest relevant trends.
INVESTOR RELATIONS
Communication
Quarterly newsletter with updates on our investments, pipeline.
Non-Deal Roadshows
Outreach to the broad community of investors active in our focus areas.
Fundraising
Presentation of current investments, upcoming pipeline, and funding needs.
Investor Feedback
Ongoing dialogue responding to investor inquiries and feedback.