| Hotel Building Parameters |
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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. |
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| Improvements Quality |
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Upscale and luxury buildings and improvements 3 to 5 Star |
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| Market Location |
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Primary and secondary resort, urban, and suburban markets in the U.S. |
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| Other Market Criteria |
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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. |
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| Site Ownership |
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Prefer fee simple land but will consider longer-term economic leaseholds
(>60 - 80 years) |
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| Transaction Size |
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$18 Million to $120+ Million individual assets.
Portfolios will also be pursued. |
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| Investment Profile |
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Both current income and value-added projects including, renovation,
repositioning, and management efforts. |
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| Development Component |
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Development upside and major redevelopment potential will also be
considered with assets that can continue to produce interim cash flows. |
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| Management |
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Prefer unencumbered projects or those in which management can be
terminated during investment period. |
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| Franchise Brands |
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Will consider primary franchise affiliations if market driven |
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| Targeted Investment Returns |
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Leveraged Return 17% - 20% (60-65% LTV)
Minimum 12-14% unleveraged return
Low initial yields are acceptable where appropriate |
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| Replacement Cost Threshold |
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Purchase price below replacement cost (<95%). |
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| Transaction Funding |
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All-cash purchase |
