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Shreem Capital’s Two-Part Strategy

Part 01

Acquisition of Boutique and Life Style Hotels

Long Term Cash Flow and Capital Appreciation in high barrier to entry markets, Typically, new construction or repositioning of existing structures.

  • This segment of hospitality is fastest growing and when executed well drives the most profitability which involves distinct guest experiences compared to “cookie-cutter” hotels.
  • Collaborate with design and branding teams to passionately create one-of-a-kind designs through storytelling and delivering exceptional guest experiences. This equates to properties that produce market-leading results and performance, resulting in significant long-term capital appreciation while providing consistent cash flows.
  • While these projects are capital intensive, they provide unrivaled food and beverage as well as an amazing overall guest experience that leaves a lasting impression. This enables us to commercialize more than just hotel rooms (at a premium) and earn money from unexpected areas of operations that drive superior long-term returns.
  • The next generation of travelers seeks out unique social and professional experiences while on the road. Getting this right through unwavering attention to detail during the design stage can result in a plethora of profit-generating sources within the hotel operations. Given the tech-savvy profile of this new breed of travelers, incorporating and utilizing technology solutions within the design reduces the operational overhead burden.
Part 02

Acquisition of existing stable cash-flowing hotels

with significant value-add potential and sound fundamentals.

  • By fundamentals, we mean the age of the asset, the brand of the asset, reliable and diverse demand generators, and thorough SWOT analysis to ensure that we can outperform the competitive set with our management expertise, as we have consistently demonstrated over our previous and current assets.
  • We strongly believe profit is made when buying the asset rather than at the point of sale. We have been successful in two kinds of acquisitions – one in which the current selling party overpaid for the asset from the onset and one in which the asset is grossly mismanaged.
  • We are convinced that the years 2014 to 2021 were "boom years" for the hotel transaction market, owing to the artificially low-interest-rate environment and easy access to cheap debt, all of which were caused by the negative effects of loose monetary policies. Prior to the covid-19 pandemic, this resulted in an oversupply of hotel rooms in many major markets. Surprisingly, the amount of liquidity available has continued to drive up acquisition prices in a hypercompetitive Sellers' transaction market following the pandemic.
  • We are confident that the time has come for our firm to pursue opportunistic growth and acquisitions as government-infused lifelines dry up and the central bank begins to tighten monetary policy by raising interest rates.
  • Exit strategy is within 3 to 7 years, depending on each unique asset, as well as risk management analysis via disposition or recapitalization.

Principles that drive our strategy

Debt eats equity

We don't like having too much leverage. This allows us to mitigate downside risks and easily navigate difficult times.

Debt eats equity

We don't like having too much leverage. This allows us to mitigate downside risks and easily navigate difficult times.

We go back before we go forward

We look back at our past mistakes and past trends in our line of business and successful strategies to guide our future investments.

We go back before we go forward

We look back at our past mistakes and past trends in our line of business and successful strategies to guide our future investments.

Alignment of interests

Unlike other bigger sponsors, we put a minimum of 10% of our own equity at risk with you as we strongly believe in every investment we make with the ultimate goal of financial liberation.

Alignment of interests

Unlike other bigger sponsors, we put a minimum of 10% of our own equity at risk with you as we strongly believe in every investment we make with the ultimate goal of financial liberation.

Stress test different scenarios

All investments are subjected to extensive downside stress tests to ensure that, in the worst-case scenario, we are positioned to protect the investors' principal. Touchwood, we have never lost money on any of our previous or current investments!

Stress test different scenarios

All investments are subjected to extensive downside stress tests to ensure that, in the worst-case scenario, we are positioned to protect the investors' principal. Touchwood, we have never lost money on any of our previous or current investments!

Vertical integration

From capital raising to development to acquisitions to asset management to property management, we have done it all since we were 8 years old. Our unique upbringing and ability to acquire skills in all areas of hotel investments have allowed us to maximize our returns and own our outcomes.

Vertical integration

From capital raising to development to acquisitions to asset management to property management, we have done it all since we were 8 years old. Our unique upbringing and ability to acquire skills in all areas of hotel investments have allowed us to maximize our returns and own our outcomes.