Anthony Falor, managing director for Ten-X’s Hospitality Group, describes crossover investors in the industry as “qualified groups or individuals who may or may not currently be in the hospitality space but understand the benefit of diversification into different commercial asset classes.”
An example of this, he says, was a 2016 hotel transaction where the ultimate buyer was a group whose majority holdings were in the multi-family sector. “Their impetus for buying that specific property was two-fold: They were familiar with the local market and wanted to continue buying assets there, and with capitalization rates in multi-family at or below six percent, buying this property at 8.65 percent was like buying a predicable coupon, thus balancing the risk in their overall portfolio.”
Read about how working with brokers during hotel asset transactions can lead to industry insights and more lucrative deals here.
