EOS Investors

“Since 1987, you've only had hotel demand decrease in years of large global shock. What I left out was that it declined last year. Now you could say was liberation day, global shock, stock markets up. I don't think so. That broke a 40 year rule.”

“The quality of the team prior to our buying the asset is not as important as the quality of the team that would be in there when we're owning the asset.”

“Before we're buying something, our acquisitions team is the majority partner. After we buy it, our acquisition team is the minority partner.”

“Actually, if you go back all the way to 1987, which is as far back as you updated, you can see that demand for hotel rooms across the U.S. Has grown at just about two percent a year. For 40 years, and only ever declined in periods of global shock. So, 91 with …”

“What's really interesting is that almost every one of these markets has a demarcating line, or if you do a scatter plot for the last 40 years, where above and below a certain threshold, there is a pronounced difference of ability to drive rate. It's not even c…”

“What I mean by that is if I had to bifurcate The market underwriting from the idiosyncratic asset underwriting, I would give a 75% weight to getting the market right, if not higher.”

“We want to make sure we have a margin of safety from how we're financing ourselves so that if there are short-term shocks, we can ride through that without Being forced to do something that we wouldn't want to do. We have great conviction in a five to 10 year …”

“What we have found over a long period of time is that 90% of what we're going to invest in Is in seven large urban markets, so Boston, New York, DC, Miami, Chicago, San Francisco, LA, and resorts, which the vast majority of the resorts that we invest in are up…”

“I think in six of the nine years that we've been around, We've made one or zero investments.”

“If you don't have full alignment between those teams and accountability across the board as one team, you end up with a situation where you've got misalignment of objectives where an investment team says they feel good about something, they hand it to the team…”

“Generally, we never want to make the core business plan or returns that we're banking on dependent on us doing an exceptional job with design or food and beverage outcomes or outperforming the market.”

“Just a few months ago, we launched a hotel credit business to fill a very needed hole that's been created from the way regulations at banks have continued to form and also the way private credit in real estate has formed.”