We founded Pharos Hospitality with the goal of acquiring and operating branded upscale select service hotels by leveraging our teams’ extensive history and experience in the sector. We focus on primary and secondary urban growth markets in the southeastern and mid-Atlantic United States, and on the Marriott and Hilton brand families.
We engage in both single-asset and portfolio transactions, and are focused on hotels that can be purchased without the encumbrance of management contracts.
We pursue properties that can generate dependable 8-10% coupons with some asset value appreciation potential in most economic conditions over a 5 to 7 year hold period, while maintaining reasonable leverage levels (60-65% for most properties). This combination reduces risk, while generating strong returns for investors.
Simplify and Align
The key to our investment strategy is the execution of our optimized hotel model that simplifies and aligns all aspects of hotel ownership and operations.
- Today’s hotel industry is burdened by overly complex and fragmented organizational structures, and dated, restrictive operational processes.
- The inherent struggles between the individual interest of the hotel owner, the Brand and the 3rd party property management created by these complexities have suffocated all chances of improving the business of owning and operating hotels, and devoured revenue increases before they reach NOI.
- Our approach integrates hotel ownership, investment, and management, focusing on creating value as opposed to simply managing assets.
- We focus on improving property staff to allow for greater property level authority.
- In conjunction with other approaches, the collective impact of this simplified and aligned model reduces costs, maximizes revenues, and increases returns.