Hotel Acquisitions

Hi Guys

Hope all is well.

Does anyone have any insight as to what the exit opps could be for this:

Relatively boutique / not well known brand, family office with equity partners providing majority of capital. Looking to acquire 3/4 luxury hotels over 5 year period. 2.0x return target. Role will involve entire lifecycle, underwriting, asset management and exit etc. Very lean team - will lead / develop relationships with all stakeholders in market. Focused on core/value-add hotels

Wondering how to assess prospects in 2 years 

Coming with relatively limited hospitality experience (more generalist PE)

 

Exits opps will be plentiful, assuming the platform does well. You could stay in the hotel focused REPE space at a boutique, join a mega fund that invests a portion of their fund in hotels (Starwood, Bain), join one of the major brands (Accor, Marriott, etc), join a general PE shop that focuses on travel & leisure as a theme or focus, or best of all, start your own shop and do your own deals.

But as the other poster said and if you like hospitality, this is the exit.

 


The branding is what makes this role compelling and gives you broader exposure to other realms outside of just pure real estate.

I have no clue what brand this is, so if the brand sucks this won’t help you. But if you’re propco and opco building at a real company that’s an interesting role and will open many doors.



 

Thanks for the responses. 

I had two concerns - i) its relatively unknown shop so hard to tell what my experience will be like in terms of learning (not sure your MF platforms will assume my experience is "rigorous" enough given the family office nature), ii) is 3/4 hotel deals enough in 2-3 years? Majority of my time will be spent on managing the asset I assume given such few deals although I have no idea whether that is a good amount of deals in REPE terms

Thanks!

 

Hi there,

I'm in a relatively similar position with similar questions, currently working @ a value-add boutique REPE investing in hotels in and around London. 
The team is lean (2 MDs + Analyst i.e. me). The company had a plan to acquire several assets with similar characteristics, rebrand, refurbish and sell as a portfolio. Nevertheless, a different larger single-asset opportunity came into play, and since we've drifted away from initial portfolio-building strategy, however currently planning to return on the track with several acquisitions in the pipeline.

Also wondering how to assess my own options 2 years in. Currently 9m in.
Would you be up for a confidential chat to discuss our day-to-day responsibilities, comp and culture?

Thanks!

 

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