Investment Criteria
| Hotel Building Parameters |
150 to 600+ room full-service properties Minimum $10MM gross revenue Prefer>50 SF meeting space per room Could include golf, fitness, spa, condo management, etc. |
|---|---|
| Improvements Quality | Upscale and luxury buildings and improvements 3 to 5 Star |
| Market Location | Primary and secondary resort, urban, and suburban markets in the U.S. |
| Other Market Criteria | Prefer markets with convenient primary or regional airport service; reasonable barriers to entry; diversified demand generators; and multiple demand segments in corporate, group, and leisure. |
| Site Ownership |
Prefer fee simple land but will consider longer-term economic leaseholds (>60 - 80 years) |
| Transaction Size |
$18 Million to $120+ Million individual assets. Portfolios will also be pursued. |
| Investment Profile | Both current income and value-added projects including, renovation, repositioning, and management efforts. |
| Development Component | Development upside and major redevelopment potential will also be considered with assets that can continue to produce interim cash flows. |
| Management | Prefer unencumbered projects or those in which management can be terminated during investment period. |
| Franchise Brands | Will consider primary franchise affiliations if market driven. |
| Targeted Investment Returns |
Leveraging Return 17% - 20% (60-65% LTV) Minimum 12-14% unleveraged return Low initial yields are acceptable where appropriate |
| Replacement Cost Threshold | Purchase price below replacement cost (<95%). |
| Transaction Funding | All-cash purchase. |
