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Capital Raising Strategy
The current method for marketing hotel properties requires us to act very quickly on an acquisition target. Given that we have been active in the Florida market for over thirty years, we have extensive knowledge of our targeted markets, plus relationships with local real estate professionals, which gives us an ability to act quickly. We are in contact with nearly all the primary property brokers in our targeted markets, but we prefer, when possible, to focus on “off-market” transactions. These are properties that are not actively listed for sale but based on information from our proprietary database, we are frequently able to ascertain what properties might be purchased and then directly approach the owner. This allows us to be more efficient in sourcing properties.
Because of the compressed time period (often just a few weeks) now used by brokers to publicly market hotel properties with the new “call for offers” method, the need to act quickly requires us to raise capital in a “pre-acquisition pool” format. To allow us to react quickly to potential acquisitions, we have listed in the examples section three properties that are reflective of the hotels we expect to acquire. These properties have been put through our complete, extremely vigorous, due diligence process which is applied to all potential acquisitions - financial, physical and market. We believe these properties to be quite indicative of our future purchases. These properties are a 102-room Courtyard by Marriott in southwest Florida, an 85-room Hilton Garden Inn in a major Florida college city, and a 109-room Hampton Inn & Suites in southeast Florida. Again, we believe the property and market metrics of these properties will be quite similar to our acquisitions.