Endeavor acquires assets at a discount to replacement value and historic value multiples, executes proprietary “value-add” strategies to drive current income and future valuations, provides internal asset and hotel management services to maximize asset performance, and will execute a disciplined exit strategy to maximize investor total return.
Discount to replacement costs [development] presents a unique legacy buying opportunity
Driven by rising construction costs, cost of capital, and ongoing supply chain disruption, development costs per key have soared; concurrently, the end of Covid franchise extensions, Capex deferrals and the need to refinance at higher interest rates is bringing quality legacy assets to market at discounts to replacement cost.
This presents a historic opportunity for well-capitalized buyers to acquire quality hotel assets in the near term at discounts approaching 25%.
The Company may also target certain off-market portfolios and bank owned non-performing distressed hotel assets to achieve attractive risk-adjusted returns.
The Company will target investment opportunities in the primary target markets of the Central United States and Mountain States, specifically, Wyoming, Montana, Idaho, Utah, Colorado, South and North Dakota, Nebraska, Iowa, Kansas, Oklahoma, Missouri, Minnesota, Wisconsin, Michigan and Arkansas.
The operational management team successfully executed a value-add repositioning strategy of a past portfolio for disposition in 2018 allowing the harvest of $215 million in capital for reinvestment into higher quality assets.
Endeavor Hotel Group believes that its core industry expertise in implementing a balanced, disciplined investment approach coupled with consistent focused hotel management and timely disposition of assets has strongly impacted our past performance.
Endeavor Hotel Group intends to deploy a similar conservative leverage investment methodology in the Endeavor Hospitality Real Estate Fund to produce superior anticipated returns for investors.
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