HEI has been one of the most active investors of institutional hotel assets in North America over the past three decades. Our investments as an owner/operator, a leading private equity fund manager and as a third-party operator have been made through acquisitions, construction take-outs, and ground-up developments, and we have always focused on value-add, deep turnaround, and operational upside opportunities. To date, we have come full circle on approximately $15 billion in hotel properties and continue to invest in institutional-grade hotel projects with our diverse stable of capital partners throughout the US. As a firm, HEI has sponsored the acquisition of 83 hotels for approximately $3.5B in transactional value with realized investments generating a 21% IRR with approximately 57% aggregate leverage. Our last fully integrated private equity fund (approximately $1.5B in assets) ranked in the top 5% of all similar vintage funds on a fully realized basis.
With the DNA of an owner/operator and our time investing private equity funds, HEI brings transactional expertise to our capital partners at a level unmatched by most third-party management companies. Through our extensive industry network, HEI enjoys great visibility of brokered and off-market investment opportunities. Our team screens hundreds of deals annually, but we pursue only those deals where we see great opportunities to enhance real estate value through our proven model and calibrated operating platform.
Supporting our capital partners, our Investments Team has the expertise and resources required to confidently and expeditiously underwrite, negotiate, and secure an opportunity, as well as complete investment-grade due diligence, contract negotiations, debt sourcing and transaction closing. By combining decades of industry experience as a fiduciary, our team is able to remain vigilant, focused and capable of processing complex transactions with great speed; expeditiously vetting, underwriting, and validating opportunities, allowing us to capitalize on fast-moving situations.
At HEI, everything we do as an operator is driven around one objective: how do we continue to drive even more value from each property for our capital partners? Upon takeover of management, HEI completes an exhaustive process to onboard a property to HEI’s approach as dictated by a detailed business plan. And in a constantly changing world, we remain vigilant throughout the investment hold period to timely identify and adapt to changing market dynamics, constantly reevaluating and modifying the business plan to maximize profitability across each and every hotel in our portfolio. The following case studies provide a sampling of our achievements.
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