In this episode, Jake emphasizes the importance of having a team for unbiased insights, building cushion into deals, and learning from both your mistakes and others.
He shares an in-depth look at his process for underwriting hotel deals, including revenue assumptions, expense analysis, financing structures, and the role of pro forma models.
Jake also touches on the significance of community and networking in the hospitality industry, leveraging past partners and peers for feedback and collaboration. From discussing a potential but ultimately avoided deal in New England to highlighting the benefits of working with branding agencies and interior designers, this episode is a masterclass!
Connect & Invest with Jake:
Follow Jake on X: https://x.com/JWurzak
1 on 1 coaching with Jake: https://www.jakewurzak.com/coaching
Learn How to Invest with DoveHill: https://bit.ly/3yg8Pwo
Topics:
(00:00:00) - Intro
(00:00:56) - The Value of a Hospitality Network
(00:02:40) - Savannah Hotel Deal and Due Diligence
(00:03:55) - Navigating Investment Strategies and Honest Feedback
(00:06:23) - Underwriting Deals: A Case Study
(00:08:53) - Seasonal Hotel Operations and Business Plan
(00:15:03) - Evaluating Hotel Deals and Financial Metrics
(00:25:28) - Short-Term Rental Opportunities
(00:26:06) - Financing and Bridge Loans
(00:27:52) - Pro Forma Metrics and Cash Flow
(00:30:30) - Internal Memos and Investment Committee
(00:32:34) - Lease to Buy Options and Master Leases
(00:37:38) - Pro Forma Creation and Sensitivity Analysis
(00:40:13) - Investor Returns and Deal Structures
(00:45:38) - Design and Renovation Budgeting
(00:50:26) - Final Thoughts and Q&A
