HOSPITALITY INVESTORS GROUP

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.