1/8 On Due Diligence - a multi day thread:
When pursuing a new hotel acquisition with a capital partner, I do my best to identify and box in risks as part of a rigorous due diligence process.
When pursuing a new hotel acquisition with a capital partner, I do my best to identify and box in risks as part of a rigorous due diligence process.
2/8 I don’t believe I can ever truly de-risk, but by identifying the unknowns and having a plan to address, I can ensure a higher likelihood of success.
3/8 It also affords me the opportunity to present a capital partner a thoughtful plan and to be open and forthright about the risks. I find it helps me answer the partner’s questions, even the ones I hadn’t anticipated.
4/8 I’ll do a series of threads about my DD process over the next few days, assuming a property in my primary segment (upper upscale & luxury).
5/8 I’ll also assume a fairly cosmetic (read: no hard construction) renovation with brand and management change to drive a value add thesis.
6/8 It’s important to remember that all the items I discuss will be happening in an iterative manner and (as often as possible) in parallel. Much of this is only “finalized” just before a deposit goes hard, and some not until closing.
7/8 I’ll append each thread here for a consolidated summary of my DD approach.
8/8 Also, and I cannot stress this enough - my approach is not the only one, not the best one, and is likely missing critical items... that’s the beauty of being part of a team; sometimes they do things I don’t even know that make all the difference in the world.
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