The committee should see the required cash, the evidence supporting it and the conditions that would invalidate the deal. Our recommended decision is not simply proceed or reject; it can also be reprice, restructure or defer until a specific uncertainty is resolved.
A 2026 Skift interview with hotel owner and asset manager Davonne Reaves discusses hotel acquisitions through both operational and capital-structure considerations. It is useful practitioner context, not evidence that another buyer can reproduce the interviewee’s outcomes. (skift.com)
Recommended investment-committee package
| Item | What it should answer |
|---|---|
| Investment thesis | Why this hotel, at this basis, with this team? |
| Earnings bridge | What changes between reported profit and buyer cash flow? |
| Sources and uses | How much equity is needed at closing and afterward? |
| Downside case | What causes the cash low point and who funds it? |
| Capital plan | Which works are necessary, optional or unresolved? |
| Operator and brand case | What evidence supports the commercial assumptions? |
| Financing and exit | What happens without favorable refinancing or cap-rate compression? |
| Conditions | What must be verified or negotiated before commitment? |
Our suggested stop-or-reprice triggers include unsupported rate premiums, an unexplained margin step-up, uncosted mandatory works, inadequate low-season liquidity, unacceptable control or exit restrictions, and an ownership group unable to fund the modeled downside.
Final decision rule: do not approve because the hotel is attractive or the forecast is internally consistent. Approve only when the material assumptions are evidenced, the remaining risks are explicit and the funding plan survives a credible downside.