Investing in real estate is a medium to long-term investment.
A hotel is not a “passive” investment but an operating business that is subject to the usual risks of any business, and with these risks come rewards.
In any long-term investment there will be unexpected events, both positive and negative.
In times of crisis, experienced and battle-hardened management is paramount.
The current business interruption from the pandemic is unprecedented but business interruptions in Florida have happened before and the overall market has always rebounded within a short period – i.e. hurricanes.
The current lodging environment will be extremely difficult for properties with weak management and/or a poor capital structure.
The dominant hotel brands, our focus, will increase market share at the expense of the marginal operators.
Properties that are scheduled for a Property Improvement Process (“PIP”), as required by strong franchisors, will increase market share.
We expect to see unexpected buying opportunities but there will be NO deviation from our extremely disciplined acquisition plan.
Historically, you do not make money in real estate when you sell but when you buy, and we believe that we will have an unprecedented window for acquisitions over the next twelve to eighteen months.
As the economy restarts, both business and pleasure, travelers will really want to visit Florida again!