Vamsi Bonthala is the Chief Executive Officer and co-founder of Arbor Lodging Partners, an award-winning national hotel investment firm. Vamsi has overseen approximately $1 billion of transaction volume since the inception of Arbor Lodging Partners, where he leads all company activities including general corporate strategy, investor relations, strategic relationships, acquisitions, dispositions, and asset management.

This episode was originally released March 2023

On this episode, Jake and Vamsi discuss:

Links:

Vamsi on LinkedIn

Arbor Lodging Partners

The Grand Hyatt Kauai

Connect & Invest with Jake:

Follow Jake on Twitter

Take the Hospitality Investing Masterclass

Learn How to Invest with DoveHill

Topics:

(00:01:50) - Vamsi’s journey into Hospitality

(00:06:38) - What happened in your first deal?

(00:08:05) - How did you raise money for the deal?

(00:10:41) - Looking back, what were some of the questions you should have asked in your first deal?

(00:12:14) - How did you structure the deal with investors?

(00:12:57) - Hospitality as a complex asset

(00:14:51) - Were you looking for broken RE deals early on in your career?

(00:17:15) - When did you start to grow your team?

(00:18:57) - What made you decide to bring management in-house?

(00:21:20) - Did institutional partners start to flow in once you became vertically integrated?

(00:22:04) - How has your philosophy been shaped by doing deals in markets outside your own backyard?

(00:25:36) - How do you and your partner figure out what deals and markets you’ll focus on?

(00:28:21) - How do you keep your acquisitions team incentivized and motivated?

(00:31:45) - How do you make sure your deal pipeline is as efficient as possible?

(00:32:52) - What is your strategy for 2023?

(00:34:58) - Are you looking at converting Office to Hotel?

(00:39:40) - Do you have separate capital for Debt and Equity?

(00:42:36) - How do you make the economics work at scale?

(00:45:26) - Why do you work with institutional partners vs. syndicating deals?

(00:53:30) - At what point did you start viewing the management side as its own business?

(00:58:31) - What’s something surprising that you’re doing in the management company?

(1:00:03) - What tools are you using to maintain a pulse on the business?

(1:05:22) - How do you approach hybrid work with your teams?

(1:07:10) - How do you convert hotels to multifamily?

(1:18:13) - What is your favorite hotel?

Patrick Carroll is the founder and CEO of CARROLL, a prominent real estate investment company. From a young age, Patrick Carroll envisioned building a real estate company from the ground up. The ambitious entrepreneur leveraged what was initially a multi-family and retail assets company into a leading real estate empire.

As CEO, Patrick helps define and implement strategic plans designed to further expand all facets under the CARROLL portfolio. As a disciplined investor, Patrick carefully balances acquisitions and dispositions, and has led to $12.1 B in acquistions and $8.8 B in dispositions of multifamily real estate producing an average gross IRR of 29%.

Founded in 2004, CARROLL marked the beginning of Patrick’s real estate investment and development career. Patrick’s early success in the industry came from residential investments and developmental projects across the Southeast, which, in turn, produced the opportunity to develop retail centers, mixed-use properties, and student housing.

In 2009, Patrick acquired three property management companies, creating the large-scale infrastructure for what CARROLL is today. Compounding on his experience with investment, property management, development, and construction, Patrick has taken a modest initial investment and cultivated that into a 30,000-unit portfolio.

Links:

Patrick Carroll

Patrick on Instagram

Connect & Invest with Jake:

Follow Jake on Twitter: https://twitter.com/jwurzak

Take the Hospitality Investing Masterclass: https://learn.jakewurzak.com/

Learn How to Invest with DoveHill: https://bit.ly/3yg8Pwo

Topics:

(00:00:00) - Intro

(00:02:41) - Patrick’s transition from house-flipping to multifamily

(00:14:07) - What was your deal criteria early on?

(00:19:42) - How were you finding deals?

(00:23:30) - How did you scale?

(00:31:54) - Building a profitable management company

(00:33:55) - Raising capital & getting deals done

(00:49:14) - The buy-fix-sell strategy

(01:06:18) - Pausing deals post-covid

(01:08:51) - Selling the business

(01:17:03) - Thoughts on the market today

(01:24:24) - Mental health

(01:29:35) - What’s your favorite hotel?

Highgate is internationally recognized as a dominant operator across diverse markets and asset types. They have arms in asset management, development, investor management, and technology that have helped grow them into one of the most successful hospitality companies in the world. 

This episode was originally released June 2023

On this episode, Jake & Arash discuss:

Connect & Invest with Jake:

Follow Jake on Twitter

Take the Hospitality Investing Masterclass

Learn How to Invest with DoveHill

Links

Highgate

Arash on LinkedIn

The Viceroy Hotel: Sugar Beach at St. Lucia

Timestamps

(00:00:00) Intro

(00:02:38) How do you experience a hotel when you travel and what are you looking for?

(00:05:29) How did you get started in this industry?

(00:09:54) What about your journey has shaped how you are as a leader and how you build brands?

(00:13:02) What are some key elements that separate Hospitality characters from Hospitality business folks?

(00:15:16) How are you making sure employees are bought in?

(00:19:20) How many hotels fall under your portfolio?

(00:21:39) Where are you spending the majority of your time day to day?

(00:23:57) Is there an optimal scale to justify implementing Business Intelligence technology?

(00:27:24) What was most surprising to you when you joined High Gate?

(00:29:12) Do you see branded hotels growing or shrinking?

(00:33:20) Are you working on creating new brands?

(00:42:45) F&B Strategies and amazing restaurant operators

(00:53:54) What are some of the things you learned working with Barry Sternlicht?

(00:57:31) What are some best practices for prioritizing your work?

(01:00:46) How are you trying to grow the business?

(01:04:01) Have you been looking at acquiring brands that your infrastructure is uniquely equipped to scale?

(01:07:01) What mistakes do you see most often from operators and investors?

(01:09:50) What are you seeing in the market forecast?

(01:11:47) What is your favorite hotel?

In this special coaching-call episode, we talk about overcoming the unexpected challenges that often pop up in real estate projects and how to communicate effectively with investors when things don’t go as planned. We also break down how to structure hotel operating businesses, including why it can be a good idea to use separate LLCs, how to handle employee benefits, and the advantages of S corporations for tax savings.

On top of that, we get into the nitty-gritty of managing hospitality and food & beverage operations, touching on both tax considerations and the complexities of construction contracts, including GMP savings. You’ll also hear some strategic tips on how to scale your investments, make the most of unique property features, and create innovative F&B concepts that not only enhance guest experiences but also boost profitability. Enjoy!

Connect & Invest with Jake:

Follow Jake on Twitter: https://twitter.com/jwurzak

Take the Hospitality Investing Masterclass: https://learn.jakewurzak.com/

Learn How to Invest with DoveHill: https://bit.ly/3yg8Pwo

Topics:

(00:00:00) - Intro

(00:02:31) - Delivering bad news to investors

(00:09:33) - Operating companies vs. property company structures

(00:02:27) - Structuring branded residences

(00:23:45) - Structuring for a F&B Leased to a third party

(00:34:09) - Incentive structures for construction management

(00:40:55) - Getting comfortable with first-time operators

(00:49:13) - Why first-time hoteliers fail

(00:58:15) - Best practices for getting a liquor license

As the CEO of BTI Partners, Noah brings over 30 years of real estate finance, construction and development experience to the table with over $3.5 billion in transactions across a wide variety of asset classes.

This episode was originally released November 2023

On this episode, Jake and Noah discuss:

- Spotting patterns in cycles to take advantage of

- Debt positioning

- Identifying great locations

- Biggest makes for folks getting into the land business

Links:

BTI Partners: https://btipartners.com/

Noah on LinkedIn: https://www.linkedin.com/in/noah-breakstone-97ba576/

Connect & Invest with Jake:

Follow Jake on Twitter: https://twitter.com/jwurzak

Take the Hospitality Investing Masterclass: https://learn.jakewurzak.com/

Learn How to Invest with DoveHill: https://bit.ly/3yg8Pwo

Topics:

(00:00:00) - Intro

(00:01:41) - Noah’s background and career in development

(00:11:31) - Spotting patterns in cycles to take advantage of

(00:14:43) - Hold periods and investment horizons

(00:17:02) - Asset class approach

(00:22:53) - Debt positioning

(00:25:49) - Finding the right partners

(00:27:51) - Why did you choose to only operate in Florida?

(00:31:02) - Identifying a great location

(00:32:50) - Long-term concerns for Florida

(00:35:37) - Build for Rent opportunities

(00:41:28) - Does education play a role when looking at land?

(00:44:34) - Housing

(00:56:30) - The impact of distribution centers

(00:59:28) - Biggest mistakes people make getting into the land business

(01:05:01) - How do you know if you’re overpaying or getting a great deal?

(01:07:21) - Identifying a slow-down

(01:16:47) ) - How has your leadership style changed over time?

(01:21:25)- What’s your favorite hotel?

Adler Real Estate Partners is an entrepreneurial real estate company pursuing a vertically integrated niche strategy which invests in multi-tenant light industrial and related business parks. The Company is highly focused on a specific market sector, enabling it to generate favorable risk-adjusted returns.

Formed in 2012 as an independent company, the firm carries in its DNA the successful 50-year track record of acquiring and operating multi-tenant commercial real estate assets of Matthew Adler’s legacy family business, the Adler Group.

This episode was originally released December 2023

On this episode, Jake and Matt discuss:

- How the fund investing model has changed risk appetite

- Adding value as an operator

- Matt’s investment strategy

- Creating incentives and deal structures

- Surviving without a promote

- Raising capital

Connect & Invest with Jake:

Follow Jake on Twitter: https://twitter.com/jwurzak

Take the Hospitality Investing Masterclass: https://learn.jakewurzak.com/

Learn How to Invest with DoveHill: https://bit.ly/3yg8Pwo

Links:

Adler Real Estate Partners

Solo Ep on fees

Four Seasons Golden Triangle Thailand

Topics:

(00:00:00) - Intro

(00:02:00) - The post-covid industrial space

(00:05:02) - Key moments in Matt’s career

(00:08:40) - Gross-to-Net spread

(00:09:59) - How the fund investing model has changed risk appetite

(00:14:11) - Adding value as an operator

(00:16:54) - Matt’s investment strategy

(00:26:10) - Creating incentives and deal structures

(00:38:05) - Surviving without a promote

(00:42:29) - Raising capital

(00:50:34) - Characteristics of a successful reporting memo

(00:53:43) - Managing the business weekly

(00:57:13) - Acquisitions people vs. asset managers

(01:02:12) - The 3 KPI’s that determine whether to pursue a deal

(01:06:57) - Acquisitions and investment size

(01:09:24) - Sourcing deals

(01:11:54) - Thoughts on debt

(01:13:35) - What’s your favorite hotel?

This episode is a deep dive into Preferred Equity with audience Q&A. Enjoy!

Connect & Invest with Jake:

Follow Jake on Twitter

Take the Hospitality Investing Masterclass

Learn How to Invest with DoveHill

Topics:

(00:00:00) - Intro

(00:02:32) - Introducing preferred equity

(00:06:15) - Preferred equity and returns

(00:13:03) - Last Dollar Basis

(00:15:55) - Basic structures of preferred equity

(00:19:30) - Control and rights

(00:20:50) - Non-subordination

(00:23:50) - Preferred Equity doesn’t need to be paid current

(00:25:05) - Pitfalls

(00:27:49) - Terms

(00:30:38) - Why Preferred Equity is Better than Private Credit

(00:33:11) - Deal sizes for Preferred Equity

(00:39:20) - Common objections

(00:41:35) - Q&A

Opterra Capital is real estate investment sponsor and operating partner, capital markets advisor, and asset manager with significant experience in all sectors of commercial real estate. Founded by Glenn Alba, a former Managing Director at Blackstone with over 23 years experience in real estate, Opterra Capital seeks to leverage this expertise towards value-add acquisition and proactive investment management to deliver attractive, risk-adjusted returns.

Opterra’s core investment strategies focus on both value-add (opportunistic) and stabilized, income-oriented assets in the hospitality, office and multi-family sectors. Our approach seeks to capitalize on mid-market opportunities in the $25 -150 million range in the United States, Canada, and the Carribean. Our investment strategy is strongly influenced by our deep asset management experience to identify the proper capital repositioning, cost reduction and operating leverage opportunities inherent in each asset to maximize returns to investors.

This episode was originally released July 2023

On this episode, Jake & Glenn discuss:

Links:

Opterra Capital

Glenn on LinkedIn

Connect & Invest with Jake:

Follow Jake on Twitter: https://twitter.com/jwurzak

Take the Hospitality Investing Masterclass: https://learn.jakewurzak.com/

Learn How to Invest with DoveHill: https://bit.ly/3yg8Pwo

Timecodes:

(00:00:00) - Intro

(00:01:01) Glenn’s career at Blackstone and the decision to leave

(00:06:39) Rolling the Blackstone mentality into Opterra

(00:08:09) Glenn on falling in love with Hospitality

(00:09:57) How Blackstone shaped Glenn’s Investment Perspective

(00:13:02) How Opterra evaluates deals

(00:16:54) Opterra’s capital strategy

(00:19:15) Converting Office into a Luxury Hotel

(00:23:49) Structuring a business to be focused on doing what you want to do

(00:26:35) The ‘no-assholes’ policy

(00:32:46) Post-Pandemic approach to doing deals

(00:34:29) Qualities behind great RE investors and asset managers

(00:39:01) Developing an asset management platform

(00:44:11) Implementing processes at Opterra

(00:49:19) Acquisitions processes

(00:57:49) Areas in Hospitality ripe for disruption

(01:04:56) How have the past 3 years informed your decisions for the next 5 years?

(01:09:58) How do you know when to sell?

(01:15:32) What’s your favorite hotel?

Mahavir Patel is President & CEO of Aatmos, which focuses on investing in communities with growing demand and limited supply, investing in capital and culture. They partner with Marriott, Hilton, and IHG, as well as some of the most provocative creatives and curators in the country. 

Links:

Aatmos

Mahavir on LinkedIn

Connect & Invest with Jake:

Follow Jake on Twitter: https://twitter.com/jwurzak

Take the Hospitality Investing Masterclass: https://learn.jakewurzak.com/

Learn How to Invest with DoveHill: https://bit.ly/3yg8Pwo

Topics:

(00:00:00) - Intro

(00:02:42) - Managing a lifestyle hotel with Marriott

(00:19:08) - Differences between Mom & Pop style hotels vs. major brands

(00:12:51) - The clash between old-school and new-school hospitality

(00:16:01) - What do most people underestimate about hospitality?

(00:19:55) - Converting a motel into a lifestyle hotel

(00:32:25) - What did you miss in this project?

(00:39:33) - F&B

(00:44:12) - What are you doing less of as you do these conversions?

(00:47:57) - The inspiration of Blackberry Farm

(00:52:04) - How do you make your sub-100-key hotels profitable?

(00:57:47) - The inn-keeper concept

(01:07:41) - Where do you want to be in 5 years?

(01:08:49) - What’s your favorite hotel?

Cyrus Vazifdar is a Managing Director in the Hospitality Investment Advisory practice at Hodges Ward Elliott. He specializes in institutional-grade hotel and resort property transactions throughout North America, including investment advisory and equity placements.

Connect & Invest with Jake:

Follow Jake on Twitter: https://twitter.com/jwurzak

Take the Hospitality Investing Masterclass: https://learn.jakewurzak.com/

Learn How to Invest with DoveHill: https://bit.ly/3yg8Pwo

Links:

Cyrus on LinkedIn

HWE

Topics:

(00:00:00) - Intro

(00:03:41) - Cyrus career in Hospitality brokerage

(00:10:22) - The growth around the Miami area

(00:12:58) - Hospitality brokers vs. other asset classes

(00:16:06) - Gauging the credibility of brokers

(00:19:18) - Broker stories

(00:21:08) - What’s the biggest difference between the blackstones and owner-operator groups?

(00:23:54) - Thoughts on the state of commodity hotels

(00:29:32) - Pivoting into ultra-luxury hospitality

(00:34:36) - What does Ultra luxury mean to you?

(00:36:42) - The importance of Brand

(00:39:39) - What insights have you gained in making an ultra-luxury property profitable?

(00:42:52) - Development approaches

(00:50:00) - Fund Structure

(00:53:07) - Planning and Hold timelines

(01:00:39) - How are ultra-luxury hotels making money?

(01:03:48) - Operations and management

(01:05:36) - Why would you pass on a deal?

(01:09:53) - Why is ultra luxury your best bet?

(01:15:38) - What is your favorite hotel?