Hospitality Veterans Launch New Fund to Acquire Hotels

"We believe the turmoil in the credit markets, together with the prospect of a recession, the depth and duration of which is unknown, will create compelling opportunities to acquire hotels at historically attractive prices," Solmson said. "Assuming moderate leverage of approximately 50 percent, we will have up to $300 million in buying power and plan to invest this sum over the next few years. We intend to acquire an institutional grade portfolio of premium-branded select-service and full-service hotels that will be diversified by brand, geography and market segment. Initially, we will focus on Marriott, Starwood (including Sheraton and Westin) and Hilton-branded products."
Solmson noted that the company has flexibility in structuring transactions. "We intend to be entrepreneurial in our approach and creative in structuring transactions, and we have the ability to move quickly. We will work directly with owners, developers, brokers and management companies to source transactions. It is anticipated that all of the hotels will be operated by third-party management companies."