INVESTMENT FOCUS
District Hospitality opportunistically invests in and transforms troubled hotels into high-performing assets. Our strategy is to buy at well below replacement cost and renovate or reposition the product during the first 12-18 months.
We target markets with strong overall growth prospects, significant barriers to entry, and a stable hotel inventory with solid historical occupancies, and prefer sun belt areas supporting knowledge-based industries built around technology, finance, education, and healthcare.
We then grow NOI for disposition with the goal to double within four years. We use conservative leverage intending to generate generous cash flows while waiting for the right time to exit or refinance when it appears industry growth will continue indefinitely.
CORE STRATEGIES
Renovation / Repositioning
District Hospitality targets low-performing properties located in primary and secondary markets that we can renovate and/or reposition to capture their potential.
Revenue / Expense Management
We work to alter and improve revenue and expense management of the properties we invest in. This includes expanding the customer base, enhancing marketing infrastructure and reach, and improving labor productivity through improved employee benefits management.
Product Enhancement
District Hospitality also works to improve the customer-facing offerings of our projects, including food & beverage upgrades and expanding on-site activities and amenities.
Revenue
- Maximize revPAR penetration
- Changing demand mix to a more profitable customer base
- Sophisticated Electronic and Internet Marketing
- Target capital expenditures
- Brand Management
- Brand changes for higher yields
Expense/Management
- Employee Benefits Provisioning
- Line item benchmarking
- Real Estate Tax Initiatives
Product Enhancements
- F&B Upgrades
- Online activity enhancements