Realberry’s Hospitality Investment Strategy

Realberry’s hospitality investment strategy centers on disciplined acquisitions (both core-plus and value-add) and developments positioned for consistent and resilient performance across market cycles. Our goal is to create long-term value for investors through a collaborative, cross-disciplinary approach that unites Acquisitions, Development, and Asset Management. At the end of the day, it’s our mission to create places people love, and to support the communities in which we operate and invest. We’re focused on our environmental and community impact just as much as our focused hospitality investment strategy.

In the following breakdown of our hospitality investment strategy, we’ll cover:

Strategic Framework: The hospitality sector spans a wide range of property types, locations, and service levels. Our strategy focuses on categories we believe demonstrate resilient fundamentals. Based on our internal research, this generally includes:

Boutique luxury hotels in established destination markets;
Lifestyle properties that offer differentiated, location-driven experiences; and
Select-service hotels supported by durable and well-defined demand drivers.
Note: all investment opportunities are subject to specific underwriting, market conditions, and risks as outlined in each offering’s materials.

We emphasize cross-team accountability, underwriting grounded in well-supported market data, and a focus on measurable value. We target assets priced below replacement cost, pursuing ground-up development only where we see exceptional fundamentals, and maintaining disciplined cash flow strategies with a clear, research-led approach to value creation.

Branding Strategy: We seek partnerships with strong local operators for F&B, and look for brands with high brand equity.

Operator & Management Contracts: We build pragmatic relationships with strong operators in the asset’s type and market, ensure local staffing quality, and seek owner-favorable contracts.

Success in this industry depends on top-tier locations, sustainable revenue models, and strategic brand/operator partnerships executed with accountability and clear exit strategies. We make decisions based on our beliefs about long-term resilience and what we believe is best for our communities.

Our Filter for Hospitality Acquisitions and Developments

At Realberry, hospitality real estate investments begin with a disciplined filter intended to balance opportunity and risk. We focus on assets that we believe are below replacement cost and have reliable income streams or well-supported near-term upside. We believe these types of opportunities allow us to apply our operational expertise for long-term value creation.

Core-plus and value-add repositioning projects

Require a clearly defined, upfront plan.
Must demonstrate compelling risk-adjusted income potential.
Plans are backed by data, realistic assumptions, and a clear vision for value creation.
Assets are priced below replacement cost.

Ground-up developments

Pursued selectively and evaluated for balanced risk-adjusted value creation.
Often incorporate public-private partnerships or for-sale residential components.
Designed to promote sustainable tourism development and local economic impact.

Hold period and portfolio management

Our underwritten hold period is often 4-7 years but can depend on market and asset performance. We may selectively recommend long-term holds.
Undergoes regular portfolio reviews and strategic exit evaluations.
Maintains alignment with market conditions, investor objectives, and real estate investment cycle resilience.

“We understand the upsides and challenges of the hospitality market very clearly. Given that understanding, we believe it is critical to have a focused product strategy (luxury destination, local lifestyle, and very narrowly select service hotels). Two critical overall principles are buying below replacement cost and being disciplined sellers once we achieve our execution objectives.”
– Bill Grubbs, Chief Investment Officer

What We Look for in a Market

We believe strong investments start with strong locations. Realberry is opportunistic in targeting hotel investment locations that we believe demonstrate durable, data-backed demand drivers, such as tourism, business travel, and year-round recreation.

We look for hard-to-duplicate markets with natural or cultural appeal, supported by diverse demand segments that balance seasonality. Our preference is for healthy business climates and communities that value both growth and sustainability.

Market selection is guided by data from sources we trust such as Greenstreet, CoStar, and LARC, seeking to ensure that every acquisition or development opportunity is backed by quantifiable market strength.

Partnering with Brands That Elevate Value

We believe our hospitality brand partnerships play a critical role in creating meaningful differentiation and delivering premium guest experiences. We prioritize brands that we believe have demonstrated strong performance characteristics in relevant segments and align with the property’s design, location, and story.

This may include trusted national names such as Marriott and Hilton, which we consider additive to a property’s image and attributions, as well as select independent or boutique brands that we believe offer a distinctive local identity. Each brand partnership must clearly enhance the asset’s positioning and resonance with its audience, and not just fill a flag requirement.

Our food and beverage (F+B) strategy is an extension of that philosophy. We prefer leasing or licensing agreements with proven local operators that we believe enable authentic, community-driven hospitality projects that reflect local taste and culture. In our view, a substantial majority of F+B revenue should come from non-hotel guests, to help promote the venues becoming true neighborhood destinations.

“A modern hotel must serve as the living room for its community. We see our food and beverage program as a core financial driver, not just an amenity. By seeking to invest in authentic and highly curated F&B experiences, we seek to enhance the overall performance of our investment. More critically, we think these spaces transform the hotel into a dynamic local hub, achieving more local connectivity and making the property a true, welcoming extension of its surrounding neighborhood.”
– Jason Cruce, Executive Vice President, Hospitality Development

Operating with Precision and Accountability

At Realberry, we believe that disciplined execution is just as important as smart acquisition. Our approach emphasizes team accountability across Acquisitions, Development, and Asset Management, seeking to ensure that every decision is made with transparency and shared responsibility for results.

We maintain rigorous underwriting clarity by, among other things, grounding assumptions in real market data. We hold our team accountable, not the management company. Each investment undergoes debt yield analysis to assess whether leverage levels support the potential for steady, sustainable distributions in varying market conditions.

Through semi-annual hold/sell reviews, we assess each property’s performance and determine whether it remains aligned with our business plan and investor goals. Our assessment requires us to ask ourselves:

Is operating performance at or above business plan expectations?
Is it an opportune time to sell?
Have we achieved our business plan?
Have we maximized the asset’s value?

This consistent oversight seeks to ensure that we remain proactive, maximizing value and mitigating risk before market cycles shift.

Adapting Strategy Through Market Cycles

The hospitality industry is cyclical, so we build our strategy to be as resilient as possible. During periods of economic expansion, we seek select development opportunities that we believe demonstrate strong fundamentals and align with our risk-adjusted investment criteria. When the market contracts, we pivot toward acquisition-heavy strategies, targeting underperforming assets that we believe have potential for repositioning or improved management.

We use this flexibility to try and protect investor capital while continuing to deliver value across changing conditions. Our focus remains on markets that we believe have long-term economic durability, strong tourism infrastructure, and growth potential in sustainable tourism development.

Beyond Returns – Creating Lasting Community Value

Our investment philosophy goes beyond returns. Realberry hospitality projects are an opportunity to create lasting community value, consistent with our broader Corporate Social Responsibility (CSR) commitments.

Our developments seek to embody sustainability, placemaking, and economic growth, so that each property enhances the environment and enriches the local community.

These initiatives mirror our approach to hospitality investments — long-term, thoughtful, and centered on people and place.

“We view our investments as a tool for positive change. Every Realberry engagement is guided by a commitment to respect and enhance the environment through robust sustainability practices and to truly listen to the communities we serve. Our goal isn’t just to invest, but to be an integral partner at every level. By seeking to ensure that our projects are accretive to the sense of place and actively lift the entire surrounding neighborhood, we try to enrich the lives of everyone who calls it home.”
– Jason Cruce, Executive Vice President, Hospitality Development

Investing in the Future of Realberry

Realberry hospitality investments are guided by discipline, creativity, and a long-term commitment to value. We do it for our investors, our guests, and the communities we serve. By focusing on key locations, data-driven decisions, and strategic partnerships, we seek to continue building a hospitality portfolio designed to adapt across real estate cycles and contribute meaningfully to the communities where they’re located.

Connect with our team to learn more about our hospitality investment strategy and discover how Realberry is shaping the future of community-centered hospitality.