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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.

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.

Process

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.

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Process

Underwriting

In-depth analysis, looking to out-research competition.

Closing

Stakeholder centric approach to drive fast to successful closing.

Portfolio Management

Maximize value creation while preemtively mitigating risks.

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 relations

Communication

Quarterly newsletter with updates on our investments, pipeline.

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Investor relations

Investor Events

Regular events with thought leaders to discuss latest relevant trends.

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.

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.

Pipeline

Unique pipeline of opportunities in hotel investing.

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.

Contact

Thank you for interest in Crimson Rock Capital. Please fill out the form below to indicate your interest.

Contact Crimson Rock Investments