Based in Chicago, Arbor Lodging Partners is a national debt and equity investor in the hospitality and multifamily industry.
Arbor Lodging Partners was founded on the principle of uniting the best practices of enterprising operators and sophisticated institutional investors to effectively underwrite and execute value-add opportunities in the lodging and multifamily spaces. Today, Arbor Lodging Partners is primarily involved in three lines of business:
- Investments – Arbor Lodging Partners, with joint venture capital partners, acquires underperforming hotels, apartment buildings, and other real estate that can be enhanced through renovations and the implementation of operational efficiencies to provide attractive returns.
- Loan Acquisitions – Arbor Lodging Partners, with joint venture capital partners, acquires loans secured by hotels and other forms of real estate that can be restructured with the existing borrower to provide attractive returns.
- Management – Arbor Lodging Partners’ management affiliate, Arbor Lodging Management, manages hotel operations for assets in the Arbor Lodging Partners portfolio, as well as hotels owned by third-parties.
Investment Philosophy
Arbor Lodging Partners’ investment philosophy is simple: create exceptional value. By adhering to its established and tested underwriting methods, Arbor Lodging Partners has built a strong track record of identifying and capitalizing on lodging investment opportunities that create exceptional value. Arbor Lodging Partners’ underwriting methods are based on the firm’s, and its professionals’, experience in developing, acquiring, financing, operating and managing hotel assets and other forms of real estate. The principles underlying Arbor Lodging Partners’ investment philosophy are:
- Invest with Discipline: Arbor Lodging Partners’ investment strategy is based on a disciplined focus of pursuing opportunities with key characteristics that will ultimately generate attractive risk-adjusted investment returns. The diverse and experienced backgrounds of the Arbor Lodging Partners professionals enable Arbor Lodging Partners to thoroughly evaluate and understand the key drivers of value creation in real estate investments and structure and execute transactions in an efficient manner.
- Active Leadership: To meet guest satisfaction and financial performance goals, Arbor Lodging Partners, through its affiliate Arbor Lodging Management, works closely with hotel staff and supports them with a high level of energy, leadership and commitment. Arbor Lodging Partners strongly believes that guest satisfaction is the key to profitability; as a result, it monitors very closely the level of service provided in the hotels in its portfolio and the value that is provided to guests. Arbor Lodging Partners has an intimate knowledge of each of its hotels and the communities that they serve through constant communication with hotel staff, multiple property visits and extensive reporting required of the hotel operations teams.
- Operate with Integrity: Operating with integrity is at the core of everything that Arbor Lodging Partners does. Arbor Lodging Partners treats the resources of its investment partners as its own and seeks to conduct business in an honest and fair manner. Arbor Lodging Partners recognizes that key opportunities will continue to present themselves only if Arbor Lodging Partners acts responsibly and sustains the respect of its investment partners and others in the real estate industry.
Arbor Lodging Partners is targeting opportunities that exhibit the following characteristics:
- Underperforming with value – add potential
- Discount to intrinsic value and/or replacement cost
- Downside protection and long-term capital preservation
- Ability to reposition with targeted capital expenditure program
- Value creation through entrepreneurial asset management
Supporting Neighborhoods and Enhancing Livelihoods
Arbor Lodging Partners is committed to transforming and developing real estate around the country to address the housing affordability crisis.
We seek to support neighborhoods and enhance livelihoods by creating thoughtfully designed spaces that are of high quality. Our focus on the revitalization of existing buildings allows us to create viable housing communities in highly livable locations with a reduced environmental impact.