Excel Group

STRATEGY

CREATING EXCEPTIONAL VALUE IN THE SELECT SERVICE HOTEL SPACE

Excel Group employs nimble and dynamic value-add and opportunistic investment strategies that leverage the economic cycle to create exceptional value and returns. Uniquely positioned in the hotel investment space as a middle market firm, our company 1) plays in a sector that is too large for local players and too small for large institutions and 2) buys deals that are too complicated for large institutions.

OUR INVESTMENT FOCUS

Select-Service

Greater Profit Margins + Simplified Operating Model + Strong Lender & Buyer Interest

Premium Brands

Robust Distribution Power + Significant RevPAR Premiums + Superior Brand Recognition

Excel Group has a fully integrated platform that incorporates development, acquisitions and asset management to maximize value through all phases of the investment life cycle. Our in-house expertise includes investment sourcing, structured finance, asset management, capital planning, project management, and financial and legal restructuring. We leverage this unique and diverse knowledge base to identify and execute innovative value creation opportunities and consistently deliver above industry-average returns.


Evaluation | Investment Criteria

 

Deal Size

MARKETS

$15 million to $60 million

CBD  and Secondary Markets
Containing Diverse Demand Drivers

Brands

COST BASIS

Marriott, Hilton, Hyatt

Discount to Replacement
Low Basis to Stabilized Market Value


Execution | Investment Strategy

Value-Add Strategy

 

Our value-add strategy is focused on acquiring fee-simple, premium-branded select-service assets in primary and secondary markets with opportunity for performance upside.

Fee-Simple
Excel acquires value-add cash-flowing hotels, creating value by streamlining operations, right-sizing expenses, improving revenue management, and executing minor renovations with strong ROIs. 

Opportunistic Strategy 

 

Our opportunistic strategies encompass ground-up development and repositioning of existing hotels into premium-branded select-service hotels and acquisition of non-performance debt collateralized by hotels.

Development
Excel develops premium assets by building below market basis, creating value by developing the appropriate brand in premier locations and stabilizing operations. 

Debt
Excel acquires non-performing hotel debt at a discount, creating value by executing a litigation strategy, executing a loan workout, and obtaining collateral. 


Realization | Exit Strategy

Single Asset

Single assets are sold to a regional, REIT or institutional buyer. 

POrtfolio

Single assets are aggregated into a portfolio sold to a REIT or institutional buyer.