Weekend View - Jan. 6, 2024

Multiple Perspectives

In this weekly series, the EquityMultiple Investor Relations team discusses recent market news, commentary, and how the EquityMultiple Investments Team is positioning offerings to meet the moment.

This week's highlight: Majority LP equity position in a growing asset class with high quarterly cash-on-cash planning for a brand transition for better operational efficiency led by a highly experienced operator.

Transcript:

Welcome to Multiple Perspectives. This is your Weekend View where we explore the latest trends and opportunities in real estate investment. I'm Ashley Shumaker.

Today I want to dive into some recent developments in the hotel industry, focusing on the extended-stay segment. According to Hotel Management and LODGING magazine, this sector has been termed the 'darling' of the hotel industry, showing remarkable resilience and growth, especially during challenging economic times.

Reports from Hotel Management highlight the extended-stay segment as a resilient lodging model, thriving despite the pandemic and economic downturns. Demand for these properties continues to outpace supply, underscoring their popularity and efficiency.

LODGING magazine further illuminates this growth. The extended-stay sector has not only outpaced all other hotel chain scales but also demonstrated consistent demand growth, with revenue climbing at a compound annual rate of 3.2%. This growth is expected to continue, with significant contributions from the burgeoning tourism sector and infrastructure projects spurred by the Infrastructure Investment and Jobs Act.

Now, let's connect these insights to a compelling investment opportunity. Today, we're discussing an opportunity with Extended Stay Hotels under Eternal Companies, a segment that aligns with the trends we just discussed.

The expected growth in the sector, with a projected market value of $19.57 billion in 2023, as mentioned by The Business Research Company, aligns with the strategic positioning of Extended Stay Hotels. The investment's focus on locations like Macon, GA, and Columbus, GA, is particularly promising, given the nationwide demand growth for extended-stay lodging.

This Extended Stay Hotels investment opportunity represents a strategic entry into a thriving market, backed by solid management and a clear value enhancement plan. For those interested in capitalizing on the extended-stay hotel segment's resilience and growth, this is an opportunity worth exploring.

Thanks for tuning into The Weekend View. Join us next time for more discussions on the dynamic world of real estate investment. If you have any questions, reach out to [email protected]. We’ll see you next weekend.