For almost 30 years the principals of Inner Circle have successfully applied this strategy for 160 hospitality assets valued in excess of $3 billion.
- Acquire under performing and distressed hospitality assets
- Purchase at deep discount to replacement cost
- Renovate to create a competitive advantage
- Drive cash flow
- Create value
The fallout from the recent financial melt down left many hotel and resort owners severely over-leveraged and underwater. Already owing more than the property was worth, there was no hope of refinancing and nobody was willing to pay the price needed to satisfy the loan. The result was default and either foreclosure or simply giving the property back to the lender.
This scenario is a fertile environment for an opportunistic firm like Inner Circle Investments. As skilled negotiators and disciplined buyers, we are able to buy properties at deep discounts, often as little as 20 cents on the dollar. A well conceived renovation positions the hotel to be at the top of the competitive market and leads to increased revenue. At the same time we systematically implement a program of cost control and operating efficiency that dramatically improves bottom line operating margins. The end result is a property with significantly increased value.