Elise Capital Quarterly Journal: Q1 2022
Elise Capital finds its core values in communication, innovation, application and inclusion. We are excited to launch the first edition of the Elise Capital Quarterly Journal. These journals will be distributed on a quarterly basis directly from our Founder, Kendra Plummer purposed to provide insight into the ongoings of Elise Capital and provide industry insight. Let’s begin!
Quarter In Review…
With a successful close of 2021’s Hampton Inn Douglas acquisition, Elise Capital began aggressively seeking our next hotel investment opportunity. As we continued our expansion of developing a robust investment pipeline, we brought aboard Talia Hawley as an Acquisitions Analyst. Throughout the quarter we have scoured and diligently underwritten nearly two dozen deals landing on submitting a letter of intent on one. Following a normal acquisition process, the Letter of Intent was accepted. Unlike most acquisitions processes, while this deal entered the Purchase and Sale Agreement phase, negotiations did not come into fruition as the seller made a late decision to change directions for the asset.
Lessons Learned…
It’s okay to walk away. Working on deals comes with acceptance and rejections, excitements and disappointments. In the pursuit of a deal it’s imperative to not only walk away when necessary, but to also take precautions to mitigate risks of losing a deal. In our “Mitigating Risks” webinar, we discussed why a deal can be deferred and how to reduce the probability of loss in a deal. To watch the webinar click here.
Deals come and go, the question is: is it worth fighting for?
On The Horizon…
In the case of our last pursued deal, it was no longer worth fighting for. So, what happens next? We pursue more deals! With a larger developed Acquisitions team, Elise Capital is aggressively reviewing deals to bring another opportunity across the finish line in the next quarter. Our guiding investment principles remain the same which are premium brands in the categories of select service, limited service and extended stay yielding a return on investment to our partners of 20% IRR, two times equity multiple and 12% cash on cash return.
“There are many ways of going forward, but only one way of standing still.” ― Franklin D. Roosevelt.
As we all transition into the next quarter remember there is no one way of advancing,
you just have to move.
Hospitably,
Kendra Plummer
Founder, Elise Capital
Continue to keep up to date in our investment offerings by subscribing to elisecap.com/invest where we will launch a series of exclusive investment webinars over the next quarter.