Acquire hotel assets at a discount to new development or replacement costs to capitalize on the appealing purchase opportunities.
MHI will target acquisition opportunities mostly lying in secondary, and some tertiary, geographic markets which been identified as containing profitable and thriving assets for investment. These secondary markets avoid the cautionary characteristics of gateway cities that are already saturated with hotel assets, investors, and developers which is only expected to increase as market economics improve.
Acquisition opportunities will focus on target assets that fall in the hotel chain scales ranging from Economy over Midscale to Upscale. These segments have been identified as available for acquisition, high growth potential, and consumer willing to pay.
In addition, MHI has identified these segments of hotel scales as containing attractive industry characteristics in operational procedures and improvements, are attractive to the shifting consumer preferences, and financial benefits aligning with the MHI strategy.
Targeted acquisitions, within identified geographic locations and hotel scales, have a guideline of characteristics to meet MHI’s targeted returns.