Our purchase methodology and exit model in each given Brand Level will be one of “Buy or build, fix and sell.” The Managers will seek opportunities where they can deploy their talents and funds to buy assets in need of attention to increase Occupancy, REVPAR and overall Operating Efficiencies, which should result in increasing the Net Operating Income and Asset Value.
When buying land for building we will know that we can build and generate rates and occupancy levels at a cost to Revenue Multiple that will allow for an exit Capitalization Rate that will generate double-digit yields. Each project will be closely monitored and compared to market conditions for each Asset with the purpose of facilitating a Single Asset or Bundled Asset sale at a time that maximizes returns to DHG investors.
