How We Underwrite Hotel Assets Differently and Why It Works
When it comes to hotel investments, underwriting is where success begins. The way you evaluate an asset shapes everything that follows: acquisition price, operational strategy, investor returns, and long-term value. Many firms rely on broad market assumptions or formulaic approaches. We take a different path; one rooted in deep operational insight, select-service specialization, and disciplined market intelligence.
Here’s how our process stands apart and why it consistently works.
We Start with Operations, Not Just Spreadsheets
A hotel’s P&L tells part of the story, but numbers alone don’t reveal whether operations are healthy, efficient, or sustainable. Because our team includes seasoned operators with decades of select-service hotel experience, we underwrite through the lens of what actually works on the ground.
Housekeeping efficiency, turnover rates, and wage pressures
Brand-mandated property improvement plans (PIPs) and timing
Guest service scores and local reputation
Vendor contracts and expense benchmarks
This operational focus allows us to underwrite true performance potential, not just the pro forma on paper.
We Zero In on Submarkets, Not Just MSAs
Most firms underwrite to broad metropolitan areas. We go deeper. Submarket dynamics, like airport traffic trends, industrial growth corridors, or new corporate headquarters, are what really drive performance. By analyzing granular demand drivers, competitor positioning, and supply pipelines, we find opportunities that others overlook.
We Stress-Test Multiple Scenarios
The last few years have proven that hotel markets can shift quickly. That’s why we build underwriting models with multiple demand and expense scenarios. We test what happens if RevPAR growth slows, if staffing costs rise, or if new supply enters the market. This discipline helps us protect downside risk while still capturing upside potential.
We Leverage Relationships with Brands and Lenders
Underwriting isn’t just math, it’s also relationships. Our long-standing partnerships with Marriott, Hilton, and IHG mean we often know about upcoming brand changes or PIP cycles before they hit the market. And our lender relationships give us a clear read on debt terms, interest rate sensitivity, and financing risk. These insights sharpen our underwriting accuracy.
Why It Works
Our approach blends the precision of financial modeling with the practical lens of hotel operations. The result? Smarter acquisitions, stronger investor returns, and hotels positioned to thrive in competitive markets.
By underwriting differently, focusing on operations, submarket intelligence, scenario planning, and relationships, we don’t just buy hotels. We build durable, scalable value.