This entry treats hotels from the institutional capital-deployment angle: significant capital placed into hotel acquisition, development, and repositioning, often through funds or large operating platforms partnering with hotel management companies, to earn returns from the hotels' operating...
Log in to followA friend who runs money for a small family office told me they added hotels last year as part of a "rotation toward yield." Same week, someone else told me hotels are the closest…
Reading a hotel management agreement for a friend's group because I'm the one who reads things, and I keep coming back to the same mismatch. The agreement is ten years, third part…
$25k into a small hotel LP two years ago. 96 keys, limited service, sponsor with three prior properties. I did what I thought was careful diligence, which for me meant reading the…
My mom's old coworker runs a small investment group and they're buying a 96-key limited service hotel off an interstate exit, two brands within a mile of it. He asked if I wanted…
Sponsor deck on a 96-key exterior corridor hotel shows total revenue 3.4m and gross operating profit 2.11m, so 62% GOP margin. My understanding is that a well-run limited-service…
Two deals on my desk in the same secondary metro, both offered to me as a co-invest alongside a sponsor I've met twice. Deal A, extended stay, 118 keys, built 2016, no PIP require…
Someone asked me last week which number to check first on a hospitality deck when you've never done one, and I gave an answer I'm no longer sure about. I want to see if the room s…
Underwriting a 142-key select-service asset in a secondary market. Trailing twelve is 71.4% occupancy, 152 ADR, so 108.5 RevPAR. Total revenue 6.1m, GOP 2.45m (40.2%), base manage…
I've been reading the management agreement on a select service deal a group I know is putting together, 140 keys, secondary market with a hospital and a state university inside th…
I do construction, mostly multifamily interiors, and a sponsor buying a 90-key limited service asked me to price the room renovation. Soft goods, casegoods, corridors, some bathro…
I'm still finishing my licensing hours and the broker I'm shadowing gave me a broker opinion of value to draft on a 62-key hotel in a secondary market, mostly as an exercise. I sa…
Four assets in the fund. Two leisure-destination properties in a drive-to market, two select service boxes near a mid-size airport. My check was $75k into a $60m equity raise, so…
Been reading hospitality term sheets from the credit side rather than the equity side and something has hardened. Nobody sizes off cap rate or even off DSCR as the binding test an…
A friend from my old job runs finance at a small hospitality sponsor and offered me a $50k slot in their next fund. Three assets, all select service, two secondary markets and one…
I've got about $40k that's been sitting since I sold a small parcel last spring. A hotel fund came across my desk through someone I trust, value-add, buying select service propert…
Reviewing a hospitality fund allocation. 300m target, five to seven year hold, 2% management fee on committed, 8% pref, 60/40 above with a full catch-up. Sponsor's stated strategy…
I'm getting licensed and doing a lot of reading on the side, and hotels are the one property type where I can't follow the ownership picture. With an apartment building I understa…
I've been sitting on 6.1 acres at a highway interchange for nine years. Zoning already allows hospitality, which is why I bought it. A development arm of a hospitality fund came t…
Hotel repositioning fund, four assets, my position was $120k. I read the LPA before I signed and I read the quarterlies, which is more than most people do and clearly still wasn't…
First deal after a very long analysis stage, and the thing that broke was the one I'd modeled most confidently. 104-key extended stay, secondary market, bought at $9.5M with a $2.…