Investment Strategy – Hospitality

Avistone’s Strategy

Avistone’s investment strategy focuses on the purchase of hotels in compelling markets where brand selection, capital improvements, repositioning, alignment with qualified operating companies, superior asset management and maximizing bottom-line cash flow can lead to stabilized yield and the potential for long-term capital appreciation. We mitigate risk by acquiring properties in markets with proven demand or potential for job growth and innovation with total capitalization after improvements below their replacement cost. Development of new hotels will be considered on a limited basis where new supply warrants outsized returns.

Avistone’s Investment Strategy

Yield

Avistone targets hotels with the potential for consistent in place cash flow after capital improvements, potential rebranding and repositioning, and the implementation of superior operations and asset management.

Risk Mitigation

Avistone reduces investment risk by vetting historical market performance in locations where it acquires properties, and by working with industry leading analytics firms to project future market performance. Additionally, properties are acquired and improved at a combined capitalization below their replacement cost, thus mitigating investment risk should new construction occur in the marketplace.

Capital Appreciation

Avistone seeks to enhance capital appreciation by acquiring properties in dynamic and growing markets, improving properties to top-notch condition, positioning them with a strong brand, increasing daily occupancy and yearly operating income, amortizing debt and positioning the property for potential cap rate compression upon sale.

Avistone’s Steps for Value Creation on Hospitality Properties

Target Strong & Growing Markets

Purchase in dynamic markets with proven demand or where demand with be enhanced through job growth and innovation.

Alignment

Engage with premium brands and best-in-class hotel operating companies to produce above average industry performance.

Arrange Fixed-Rate Financing

Creates a favorable spread between cap rates and financing rates producing higher yields for investors and protects against future interest rate increases.

Expert Asset Management

Lead and work in conjunction with hotel management companies to enhance value through improving guest satisfaction and maximization of revenues and profits.

Exit Strategy

Opportunistically sell properties individually, as a portfolio or via an UPREIT structure to maximize potential value and profit for investors.

Learn More About Avistone’s Investment Offerings

To view Avistone’s current offerings and learn about future opportunities complete the form to the right.