Arcturus provides a variety of solutions for investors, owners, lenders, and developers of hotels and resort properties in the U.S. Our expertise covers all segments of the asset class, from high-rise luxury hotels in gateway markets to limited-service hotels in suburban markets, to full-service oceanfront resorts. Our senior professionals have a deep understanding of all aspects of the business, from acquisitions, development, and financing, to sales and marketing, operations and structuring franchise and management agreements. We have an extensive network of relationships throughout the industry, including investment sales brokers, property management professionals, construction managers and design professionals, owners, hotel brand professionals, lawyers, and advisors, which we leverage to help our clients meet their objectives.
Kelly Sinclair, ksinclair@arcturusgrp.com
Jinny Yoo, jyoo@arcturusgrp.com
How we support our clients:
- Property/Portfolio Assessments
- Operator/Borrower/Platform Assessments
- Market Assessments
- Investment Strategy Formulation
- Investment Origination and Underwriting
- Due Diligence
- Business Plan Development
- Transaction Structuring
- Capital Markets
- Asset Management, Leasing, and Operations Oversight
- Revenue and Expense Management
- Capital Expense Planning and Management
- Recapitalization
- Restructuring and Special Situations
- Litigation Support
- Stakeholder Negotiation Support/Management
- Sale and Liquidity Creation Strategies
- Sale execution
Recent examples of our work:
Recapitalization of 500+ Key Resort
Arcturus conducted a recapitalization and repositioning assessment for a large alternative investment manager that was evaluating a repositioning of a $120 million, full-service, oceanfront resort hotel it owned in the Western U.S. We leveraged our extensive relationships and experience with luxury resorts to evaluate the proposed PIP including scope, cost, and timing, assess the suitability of the existing brand, and lead a targeted capital markets process to source new equity and debt capital.
Debt Restructuring of Full-Service Hotel
Arcturus provided restructuring advisory services for a lender to a distressed, 500+ key hotel located in a U.S. gateway city. The client held a junior debt position and was evaluating its alternatives, including whether to initiate a UCC foreclosure or accept a heavily discounted payoff from the borrower. Arcturus leveraged its unique combination of operating expertise and extensive restructuring experience to perform a detailed underwriting of the real estate and situation, providing the client with the confidence needed to pursue a more aggressive posture with the borrower. The effort resulted in the lender being repaid at par prior to the completion of the UCC foreclosure.
PIP Assessment and Brand Repositioning Analysis
Arcturus provided repositioning and investment advisory services to a large endowment fund that was evaluating a potential new investment in a 250+ key full-service hotel located in the Northeast U.S. Our hotel professionals conducted a rigorous underwriting and due diligence, including extensive market and hotel brand analysis, PIP and business plan evaluation, and an assessment of the sponsor. Arcturus’s findings suggested an unacceptable risk/reward investment profile, allowing the client to allocate capital to more favorable transactions.
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