Development
While CapStar is under no specific constraints in terms of transaction size, individual deals will typically be in the $25 million to $125 million range. The company welcomes both individual properties and portfolios. CapStar’s core hotel acquisition strategy is currently focused on existing independent hotels, properties that can be converted to an independent from a branded hotel, or more substantive conversions from residential or office space.
The targeted markets will be the major gateway cities including Los Angeles, New York, San Francisco, Chicago, Washington D.C., San Diego, Miami, Boston, Seattle and Las Vegas.
CapStar welcomes potential acquisition candidates surfaced by the leading brands and third-party independent management companies. CapStar will work with any operator who has highly effective operation expertise and systems, strong sales and marketing skills and a track record of achieving targeted rate, occupancy and RevPar goals.
More specifically we are targeting the following:
- 150 – 400 rooms
- Potential to operate as a four-star product
- Sufficient public space for a signature restaurant, entertainment center (lounge, rooftop club, exterior club), fitness center and/or spa
- Minimum meeting space
- Existing independent hotel or branded assets that can be delivered unencumbered by franchise and management agreement
- Entitled residential or office space conversions
- Trendy or emerging submarkets in the major gateway urban markets with both corporate and leisure demand generators
- Major gateway urban markets include: New York, Los Angeles, San Francisco, Washington D.C., Chicago, San Diego, Miami, Boston, Seattle and Las Vegas