Business Lines
Resort Capital Partners provides the following services:
- Sourcing all forms of investment capital
- Disposition of assets including debt for banks and investors
- Repositioning properties and restructuring capital for banks and owners
- Targeting luxury hotels and resorts to purchase for investors
- Finding management opportunities for developers, hotel companies, golf and marina operators
JOINT VENTURE/STRUCTURED TRANSACTION
- Operating property in need of capital investment with insufficient cash flow to pay for necessary improvements or additional real estate development
- Typically little to no debt on the property with a significant amount of capital expenditures
- Land contributed to venture at minimal basis with earn out structure tied to real estate sales
RESORT MANAGEMENT CONTRACTS
- Primarily consisting of luxury hotel management agreements for 50 key to 250 key properties
- Targeting boutique hotel brands that can offer more flexibility than the big name operators
- Also would include golf course operating contracts and marina management transactions
ASSET SALES
- Primarily engaged by single asset owner looking for discreet transaction to equity investor
- Most sales structured as upfront cash payment without debt financing or seller financed note
- Typical deal size for 50 to 150 key luxury property in the 10mm to 25mm range
- Standard deal size for 250 to 1,000 key upscale property in the 50mm to 100mm range
- Current market at 10 to 12 cap rate, 100k to 300k per key and 50% of replacement cost
DEBT/EQUITY INVESTMENT
- Owner seeking outside debt or equity investment into hotel or resort asset
- Senior loan from traditional bank or mezzanine note from private equity group to fund improvements or operations at existing property
- Preferred equity stake from small to medium size institutional source to enhance existing hotel and offer short term bridge to ownership
- Minority or majority equity position from family office investor buying into hotel or resort for medium to long term investment period