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Special Situations Hotel Investment & Advisory

Whilst there are continuous political and regulatory pressure on U.S. banks to significantly reduce their Real Estate Owned (“REO”) as well as Non-Performing Loan (“NPL”) levels and regulations on foreclosure, insolvency and sale/securitization of loans have been strengthened, and investment managers with turnaround experience will be in high demand for the next cycle. Many GP’s and operators in default are able to significantly slow down the insolvency processes using proven practices however due to the sudden drop in revenues, unmanageable operating expenses, and challenging capital markets these circumstances will force a need to sell which will present opportunities.

Investment Pipeline

  • Opportunities sourced through local relationships.
  • Strong relationship with owners, brokers, operators, servicers, banks, REIT’s, and brands such Marriott, Hilton, Hyatt, and IHG.
  • Active deal negotiation and structuring by Taurus to acquire at an attractive basis that benefits all stakeholders in terms of structure, continuity, business plan, and execution timeline.

Investment Case

  • Deleveraging
  • Economic Pressure
  • Hotel Market Lifecyle
  • Discounted Hotel Market Values
  • Hotel Market Trends
  • Financing Constraints
  • GP/LP Constraints

Taurus pursues special situations for both debt and equity, bypassing traditional market transactions. 

  • Undervalued or illiquid assets
  • Complex Transactions
  • Strategy with clear path to the equity
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Core Capabilities

Underwriting

  • Commercial, Legal, and Financial Underwriting
  • Market Analysis
  • Operator & Brand Selection
  • Single Asset & Portfolio Valuation
  • Transaction
  • Legal Analysis
  • Financial Modelling
  • Borrower Analysis

Pre & Post JV Strategy

  • Acquire and Reposition Hotels
  • Owner and Manager Expertise
  • Repositioning Partner
  • Expansion Expertise
  • Revenue Management Distribution
  • Management and Brand Loyalty

Risk vs Reward

  • Reliable Cash Flow
  • Stabilized Operations
  • Lower Cost of Capital
  • Market Underperforming
  • Operational Costs
  • Renovation and Rebranding Costs

Target Hotel Opportunities

  • Limited Service
  • Select Service
  • Extended Stay
  • Lifestyle
  • Full Service
  • Upscale
  • Luxury

Investment Process

  • Asset
  • Valuation
  • Business Plan
  • Capital Requirements
  • Transaction Structure
  • Asset Management
  • Exit