Property Developments» Hotel/Operational Property
Hospitality
Our primary hospitality business strategy is to acquire underperforming hotel properties that are in the path of urban growth and area revitalization. It is important for us to work with city officials to better understand their development goals for the area surrounding the property. These acquisitions are primarily for income and secondarily for appreciation potential. We seek to partner with flag brands to develop construction and operational plans for the property. In addition we also look to partner with experienced hospitality managers under long term combination agreements to ensure positive cash flow arising from hotel operations. These contracts may require hospitality operators to pay minimum returns or rent plus a share of the increased cash flows realized from the hotel operations.
We base our acquisition decisions on the historical and projected operating results of the target properties, the strength of the hospitality brand and the financial condition and expertise of the operators, among other considerations.
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