The Problem
The DEBT MARKET has changed.
The MODERN TRAVELER has changed
The yield curve has swiftly lowered the value of hospitality real estate assets
Travelers seek value in authentic experiences. The classic product & management style is not creating enough margin.
The chasm between profitable & unprofitable hotels is growing because legacy owners are not driving value for the modern traveler.
THE OPPORTUNITY
As Barry Sternlicht has modeled, if you lead with design and a lean operating model, you receive more market penetration & net margin to create higher real estae values
As Barry Sternlicht has modeled, if you lead with design and a lean operating model, you receive more market penetration & net margin to create higher real estate values
The Plan:
Acquire well-located, value-add assets at a discount to replacement cost
Execute branding, design, and programming
Create assymetric assets with smart debt and long-term equity partners
