Thinking about in a broad sense of making the jump from a medium sized multifamily buy side shop to hospitality PE. No offers on the table, but thinking about future steps.
What do these hospitality RE firms who are buying the big hotels, hotel portfolios look for? Am I out of my league having only a few years of buy side time in multifamily. My current shop is buying multifamily deals from $10M to $150M in value in a JV structure, also manage a $1bn allocation from a large pension fund--deploy about $200M a year for this allocation. I've been with this shop for 2 years (first gig in real estate after joining from a $2bn fund manager)
Any advice:
What is translatable across these asset classes in terms of modeling, financing, deal structure? Multifamily seems less complex, less risky...
What are the considerations jumping from one to the other in terms of comp, deal pace etc? The real dollars to be made seem to be only at the principal level at my firm currently.
Would I be better served thinking about Cornell for the hospitality program to make the transition?
Would I be better served looking for IBD lodging/hospitality sector gig?
Should I focus more on building more operational experience in hotels?
Any other big considerations I'm missing here? Hotel Climate v Multifamily Climate over next 5-10 years?
Nobody's answering, so my thoughts are: You could try, but if I had to guess, the answer to your questions #3-5 is probably "yes."
I have seen lodging/hospitality funds recruit at the undergrad level. Not BX, but some. So, that should tell you something. If a college kid can do it, why can't you? You are no longer an undergrad, but if your undergrad was Harvard and your GPA was decent back when you graduated, and if you have serious connections, I would say sure.
Otherwise, be prepared to get asked, "Why should we hire you instead of this kid who worked at Marriott or this guy who did hotel appraisals for 2 years?" I have met some high-up hotel folks who love to act like their product type is so sophisticated and will tell you that you can't just go straight to doing deals when you haven't learned the fundamentals.
Just off the top of my head, if it were me, I would take option #5. I wouldn't worry about operator vs PE vs developer. If I wanted to do hotels, I would just break into the hotel industry in some way/shape/form and figure it out from there. That's just my personal style. I know someone whose business partner manages and develops dozens of beautiful hotels, and he started out as a fucking bell hop.
I really shouldn't be commenting on this; you should go straight to the source. Find someone who buys hotels for a fund and ask.
Shouldn't be difficult. It's like anything else. If you were breaking into commercial you'd have to learn intricacies of it, get used to sq. ft. vs. unit metrics, learn Argus, etc.
Many would agree that hotel is one of the most exciting property types. You'll have to learn the ins and outs of not only hotel operations, demand drivers, different demographic/pyschographic factors, occupancy relative to ADR, unique operating expenses (departmental vs. general and fixed costs) etc. but also things like food & beverage operations, their relation to room sales success, impact of branding/marketing, how hotel management/franchise agreements are structured/what provisions to know, etc. Things you could easily pick up in a book, reading appraisals, agreements, etc. before an interview.
Animi aliquam odit modi quas facilis. Et reprehenderit unde non voluptates provident aut velit. Asperiores laudantium asperiores optio enim. Quia deleniti quos eos nostrum incidunt saepe.
Dolore atque et illo saepe reiciendis aut. Fugit dolor numquam facilis ex. In quidem rerum qui voluptas provident. Aspernatur reprehenderit explicabo consequatur sit laboriosam commodi dolorum non. Culpa maiores est voluptatem praesentium qui est hic et. Facilis molestias sit minima molestiae. Unde accusamus asperiores quia perspiciatis consectetur facilis non est.
Ut alias excepturi quia molestiae et. Culpa dolor illo saepe vel quia. Fuga accusamus ut blanditiis id. Itaque vel perferendis consequuntur cupiditate beatae sed molestias. Rerum sequi qui reiciendis reprehenderit non.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...