Core competency in hospitality and value-add strategies

IvyCap employs a strategy aligned with the post-pandemic renaissance, creating alternate streams of revenue for operational resilience while providing an excellent investor experience. 

IvyCap specializes in maximizing revenue and developing contingencies for any market shift, so when it is time to pivot, we are locked, loaded, and ready to pounce.

Through a long-term partnership with an experienced construction firm that holds all licenses — mechanical, electrical, and plumbing — we offer greater return on investment capital.

Vertically integrated services

  • Deal sourcing and acquisitions.
  • Due diligence and market research.
  • Utilizinge feasibility and marketability studies.
  • Development and construction.
  • Project, asset, and property management.
  • Repositioning, recapitalization, and dispositions.
  • Expense and occupancy optimization.
  • Ancillary revenue stream development.

Hospitality is The Best Bet

  • High yield with manageable risk.
  • Acts as a hedge against inflation.
  • Greater flexibility compared to other assets hindered by long fixed-term leases.
  • Value-add acquisition opportunities available.
  • Scalable revenue and expenses.
  • Trends supporting hospitality:
    • According to CBRE Hotels’ Q2 2022 report, revenue per available room (RevPAR) grew by 38% YoY to 106% of 2019 levels.
    • Meanwhile, hotel supply growth is likely to fall short of the historical average in 2023, supporting demand and value-add strategies.
    • The leisure market has recovered to above 2019 levels as people are wanting to get out and get back to normal life. 
    • Conferences and events are starting to see a rise in attendance. 
  • With inflationary indicators rising, hospitality is the best real estate asset class to invest in as we are able to reset the rate button daily.
  • A big fallout is coming to the hotel industry — all the stimulus, extension, rescue, and bridge loans that were given out are coming due and will lead to many value-add acquisition opportunities.

How We Select Deals

We look for ideal opportunities to add value and then engage in vigorous due diligence to ensure we only present you with the highest-potential deals. Our typical criteria includes:

  • Distressed/undervalued assets with value-add potential.
  • Historic assets offering tax and permitting/zoning incentives.
  • $10-50M acquisition value.
  • Upper-scale secondary markets in the U.S. with strong travel/tourism.

Exit Strategy

We prefer properties with increasing long-term revenue and hold potential.

We recapitalize and hold to continue providing significant returns to investors, or sell when most appropriate for the asset and market to maximize IRR.

1124 Hermosa Avenue
Hermosa Beach, CA 90254

310-926-1980
MON-FRI 9 am to 6 pm

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