Target Markets

Our acquisition strategy is to focus our efforts on underperforming properties located in metropolitan areas with growing populations. From among those areas, we particularly target state capitals that also have major universities because the functions of state government and the activities surrounding our nation’s major universities have historically been stable and predictable hotel demand generators.  Both intra- and inter- state travelers routinely attend university sporting events, cultural activities, and state government functions perennially. 

Further, most of the new business development in this country stems from technological advances that spawn products and business innovations that are the result of research conducted at our nation’s major universities.  Those new businesses create a predictable need for small conferences, sales meetings, new product introductions, and training meetings for transient business travelers.

Development Opportunities

Many of the existing properties in our target markets are controlled by relatively small operations that suffer from undercapitalization and a lack of management depth. Many have highly leveraged capital structures and have difficulty attracting and keeping high-quality skilled and unskilled labor.  As a result, their labor and capital costs are higher than average.  This prohibits them from exercising the pricing flexibility required to execute competitive and effective yield management strategies.  In periods of economic recession, they often suffer financial setbacks and are motivated to sell to get out of distressed situations.