A long corridor at The Williamsburg Hotel . guests and where they want to stay and what will be the next destinations .”
The CEO mentioned the company has looked south at locations for Arlos , such as Nashville , and also to the West Coast , albeit cautiously , not wanting to spread itself too thin , too soon .
Pavlov , former founder and managing partner of Cube Capital , came as an opportunistic investor to the U . S . from Russia during the thick of the financial crisis in 2008 . He made his first hotel acquisition , a Holiday Inn in Ft . Lauderdale , Fla ., in 2009 . Quadrum Global , which is a vertically integrated investor , developer and manager , was spun off in 2013 as a separate entity .
The Williamsburg Hotel is a prime example of a work record focused on distressed properties and hospitality turnarounds . Though Quadrum might be known for this strategy , it ’ s not necessarily the only one in the playbook .
“ It very much depends on the cycle — there are either distressed properties or there are not ,” Pavlov said . “ A good distressed investor ’ s philosophy is to acquire an asset that is of value , that is distressed not because it ’ s a bad asset , but because [ ownership ] is no longer capable of holding it or doing something to it .”
Seven years ago , Quadrum was seeking out land deals to build from the ground up . Today , it ’ s looking at existing properties , such as The Williamsburg Hotel , and seeing if it can acquire an attractive basis . “ That leaves us in the position to put more capital into it and reposition ,” Pavlov said .
Pavlov said he wouldn ’ t rule out a portfolio grab “ at some stage ,” either . “ If you acquire a portfolio , it usually comes with a lot of contingencies , lots of encumbrances ,” he said . “ We tend to focus on fewer assets at a time and getting them right , making the most of what we have .”
Arlo NoMad and Arlo Midtown ( at right ) are sister properties to the upcoming Arlo Williamsburg .
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