Hotel Equity Investment Criteria - We Invest in Hotels & Developments

Hotel Building Parameters
  • 85 to 350+ room full-service properties
  • Minimum $10MM gross revenue
  • Prefer>50 SF meeting space per room
  • Could include golf, fitness, spa, condo management, F&B, etc.
Improvements Quality

Boutique Hotels, Upscale and luxury buildings and improvements 3 to 5 Star

Market Location

London UK, Jerusalem & Tel Aviv Israel, New York City, West Hollywood Ca, Los Angele California, Chicago, Berlin, Toronto, San Francisco, Washington DC and South Beach Miami FL,

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 – 100 years)

Transaction Size

$10 Million to $150+ Million individual assets. Portfolios will also be pursued.

Investment Profile

Both current income and value-added projects including, Hotel Renovation, Hotel Repositioning, and Hotel management efforts.

Development Component

Hotel 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% un-leveraged return
  • Low initial yields are acceptable where appropriate
Replacement Cost Threshold

Purchase price below replacement cost (<95%).

Transaction Funding

All-cash purchase.

Hotel Investments Regions

Chicago

Chicago Hotel Investments

Washington DC

Washington DC Hotel Investments

Toronto

Toronto Hotel Investments

New York

New York Hotel Investments

Montréal

Montreal Hotel Investments

Los Angeles

Los Angeles Hotel Investments

San Francisco

California Hotel Investments

West Hollywood

West Hollywood Hotel Investments

Paris

Paris Hotel Investments

London

London Hotel Investments

Jerusalem

Jerusalem Hotel Investments

Tel Aviv

Tel Aviv Hotel Investments