Philosophy

  • HIG pursues off-market transactions only, as fewer competitive capital sources are available for smaller local players, and off-market transactions are too small for large real estate funds. Pricing is therefore competitive and bidding situations are avoided.
  • HIG's time horizon is 3- 5 years for hotel assets where there is short-term repositioning opportunity. Investment capital is utilized to tie down difficult off-market transactions to "lock value". As the deal is structured, HIG sells interest to investors with a different risk return profile.
  • HIG structures active asset management roles and with its strong and experienced management team provides on-going "transitional management services" by operating the asset through a major brand franchise agreement.

Description

  • HIG is a specialist hotel investment firm that invests and structures lodging transactions worldwide
  • HIG acts as principal in joint development of hotels and structuring/investing in single-asset transactions
  • HIG structures appropriate debt and equity to support its acquisitions
  • HIG will, in certain situations, provide a "value-added" management agreement for incentive fees that are creatively structured to provide maximum owners' returns.

Strategy

  • To invest in international first class or luxury hospitality assets which will provide the Company with continuing income from operations and residual ownership returns over a 5 year period.
  • To invest in assets managed by strong international management companies.
  • To invest in assets where the development risk is minimized.
  • To invest in assets where, if any co-venture is considered, the Company can provide development oversight and asset management review of the performance of such asset and of the management company chosen to operate such asset.
  • To invest in assets which can benefit from being in a strategic location, where barriers to entry by others are high, and where the benefit of first class management can produce significant results with a product that has been designed as the most important asset in the market.

 

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