HotelsMag September-October 2021 | Page 56

INVESTMENT

Current challenge of

ASSESSING VALUE

Contributed by ROB LEVEN , CHIEF INVESTMENT OFFICER , TPG HOTELS , RESORTS AND MARINAS , CRANSTON , RHODE ISLAND

Throughout my 25-year career in hospitality , I have been involved in thousands of property evaluations , hundreds of acquisitions , and I ’ ve analyzed just about every U . S . market from Maine to California . While each individual asset or transaction embodies its own unique set of characteristics , some specific tactics and strategies remain consistent throughout the evaluation and underwriting process , whether the subject property is a full-service branded hotel in downtown Manhattan or an upscale boutique hotel in California ’ s Wine Country .

As our industry emerges from a COVID-induced hibernation , the process of assessing value is faced with an entirely new set of variables and circumstances unlike any of the previous market cycles . The postpandemic environment is clearly much more volatile , and therefore , those of us charged with assessing value and underwriting transactions on behalf of our investment partners need to open our minds to considering new performance criteria , while also embracing the very real shifts in consumer behavior and technology adoption set in motion by the global pandemic .
I believe that , at its core , the extremely complex
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