Shamrock-Hostmark Hotel Fund, LP | Hostmark Hospitality Group

With the combined experience of managing over $3 billion in commercial assets, the team that has created the Shamrock – Hostmark Hotel Fund LP is uniquely positioned to capitalize on the opportunities that exist in the lodging market today. Relying on a talented team with over 100 years experience in commercial real estate management, the fund is actively pursuing hotel investments in major markets through out the United States and North America that would benefit from enhanced management and/or repositioning to enable the Fund to achieve superior returns in today’s investment markets.

Hospitality Investment Strategy

Shamrock and Hostmark are fully integrated companies with the required infrastructure and management expertise to execute a strategic plan to acquire, finance, reposition and manage hotels. Our strategy consists of the following:

Investment Objective - Deliver superior risk-adjusted returns through acquisition, redevelopment, rebranding, renovation and investment management of hotel assets with significant value creation.
Project Type - Focus on the acquisition, renovation, rebranding and refinancing of full-service and limited service hotels in primarily urban markets. Additional focus on under-performing hotels in stable markets. Select properties below the "radar screen" of major hotel acquirers.
Transaction Type - Equity, preferred equity and mezzanine debt.
Investment Size - $5 to $25 million.
Diversification - Not more than 25% of total investor commitments in any single market or portfolio project.
Time Horizon - Three to five years.

Current Portfolio

Doubletree Tampa Airport Westshore Hotel, Tampa, FL
The Shamrock-Hostmark Hotel Fund acquired the multi-story, 489-room Doubletree Hotel and Charley’s Steakhouse, an 11,700 square foot stand-alone restaurant located in Tampa, Florida, in September, 2007. Doubletree, a Hilton brand, performs strongly in its segment. At closing, the seller had completed renovating 200 of the guestrooms. The Fund will extensively renovate the remaining 289 guestrooms, 17,000 square feet of meeting space, and common areas. Total cost of the renovation is estimated to be $13.0 MM. The renovation should improve both occupancy and rate and allow the property to compete much more effectively.

Doubletree Tampa, FL

The acquisition of the property has significant upside potential due to the seller not having transitioned the property for low-rate airline business to corporate users and associations.

Wyndham Boston-Andover Hotel, Andover, MA
The five-story, 293-room Wyndham Hotel located in Andover, MA, features 8,000 square feet of meeting and event space which includes a 7,100 square foot ballroom, two restaurants, two lounges, an indoor pool, fitness facility and business center. The hotel just completed a $4 million guestroom and corridor renovation. The Shamrock-Hostmark Hotel Fund will extensively renovate the meeting spaces, restaurants, and public areas. Total cost of the renovation is estimated to be $3.0 million. The renovation will reflect the hotel’s position within the market and exceed service expectations of the targeted consumer. The renovation should improve both occupancy and rate and allow the hotel to compete much more effectively.

Wyndham Boston-Andover Hotel, MA

Palm Desert Embassy Suites, Palm Desert, CA
The Shamrock-Hostmark Hotel Fund’s next acquisition is the Embassy Suites Palm Desert located in Palm Desert, California. The 198-key Embassy Suites Palm Desert is situated on California's Highway 111 in the Coachella Valley, minutes from the renowned El Paseo shopping/entertainment district and central to the 80 golf courses that surround the property. The Embassy Suites Palm Desert caters to vacationers, discerning business travelers and group destination meeting planners.

Embassy Suites - Palm Desert, CA

The three-story Spanish Mission style building contains 7,700 square feet of meeting/event space, outdoor pool, spa, six outdoor tennis courts, putting green, fitness center and the Sonoma Grille, featuring outstanding regional cuisine. The guest experiences all the desired amenities of the desert with an open courtyard that transitions the public space to a desert oasis, while guestrooms offer incredible views of the San Jacinto and Santa Rosa Mountains.

Crowne Plaza, San Antonio, TX
The 10-story, 226-room Crowne Plaza Hotel located adjacent to the San Antonio Airport is the most currently renovated hotel in the competitive set. The story behind the Shamrock-Hostmark Hotel Fund's acquisition is one of significant upside potential due to the seller not transitioning the hotel from military to corporate users. The hotel has a great opportunity to gain new corporate accounts that currently stay with competitors. The Crowne Plaza brand has already brought new interest and guests due to the strong brand identity, Priority Club rewards program, upscale product and competitive rates.

Crowne Plaza, San Antonio, TX

This was considered a compelling acquisition opportunity due to the strategic components of 1) Location 2) Market 3) New Management Team and 4) Acquisition Cost Below Replacement Cost.

Doubletree Hotel, Princeton, NJ
The Shamrock-Hostmark Hotel Fund acquired the 6-story, 241-room Radisson Hotel located in Princeton, NJ, in 2006. The Fund will modify, convert and reposition the hotel to Hilton’s Doubletree, a business-oriented brand, for approximately $8 million. During the renovation period, the hotel will be unbranded and operated under the name "Princeton Premiere Hotel". As a Doubletree, the renovated and re-branded property will be targeted to a specific underserved market niche. The hotel will be positioned to fulfill the demand of customers looking for a quality full service business class hotel with all of the appropriate amenities without the price tag associated with the upscale options in the market, including the Hyatt and Westin.

Doubletree Hotel, Princeton, NJ

Currently, those customers are forced to accept an outdated, tired product or to choose a limited-service facility. This was considered a compelling acquisition opportunity due to the strategic components of 1) Location 2) Market 3) New Brand 4) New Management Team and 5) Acquisition Cost Below Replacement Cost.

SpringHill Suites, Miami, FL
Hostmark Hospitality Group and Shamrock Holdings, Inc. acquired the 7-story, 151-room AmeriSuites Hotel located in Miami, Florida in the master planned Blue Lagoon Office Park adjacent to Miami International Airport in February, 2005, in anticipation of the Fund's formation. The opportunity thesis was to convert the hotel to a SpringHill Suites by Marriott and improve the management of the hotel. Shamrock-Hostmark terminated the AmeriSuites franchise and management agreements, and executed a franchise agreement with Marriott International.

SpringHill Suites, Miami, FL

Significant upside potential exists due to previous improper branding and market under-performance, since the hotel was only two years old when it was acquired, and had not yet stabilized. In November 2005, Shamrock-Hostmark contributed the hotel to the Shamrock-Hostmark Hotel Fund, LP at cost. This was considered a compelling acquisition opportunity due to the strategic components of 1) Location 2) Market 3) New Brand 4) New Management Team and 5) Acquisition Cost Below Replacement Cost.

The portfolio companies listed are a sample of our investments. This list is not meant to encompass all current holdings. The discussion of these selected transactions is not intended as, and should not be construed as, investment advice or a recommendation to purchase or sell a particular security.