INVESTMENTS

What segment of Commercial Real Estate do we believe offers the best combination of steady high returns and strong recession resistance: “Hybrid Housing”

What Is Hybrid
Housing?

Who Needs Hybrid Housing?

How do we Develop Hybrid Housing?

Utilizing the Hybrid Housing Model and the sophisticated management tools we are developing, we can meet the occupancy needs of this unique and growing market in a cost-effective manner.

The Hybrid Housing Model positions our business to cater to the widest possible customer base in need of lodging.

What are the operating advantages of Hybrid Housing vs traditional hotels?

  • With longer average stays there are fewer turnovers. This allows for lower expenses and staffing requirements
  • Revenue is significantly greater due to increased occupancy from our wider client base
  • Extended stay guests are charged cleaning fees in addition to deposits up front to defray maintenance costs
  • Repurposing hotels rather than building new ones allows us to acquire them for much less than their replacement cost giving us a significant competitive advantage in the marketplace
  • All extended stay guests pay their occupancy fees in advance
  • Another big advantage is the elimination of the franchise fees and flag agreement that cost typical hotels 9% of revenue and force very expensive and excessive “product improvement programs” onto the owners.
  • We shift this franchise overhead to more productive marketing using social media and online advertising
Increased Recession Resistance

Hybrid Housing businesses are more recession resistant than traditional lodging businesses. By catering to a much broader market than just traditional recreational and business travelers, we can adjust our occupant mix to keep occupancy significantly higher. If the economy were to turn sharply downward there would be a natural increase in demand for this product as people transition out of homes and apartments that they can no longer afford. Job losses and the need to transition to other locations will also drive demand for these services.

How can you participate in this new business model?

Why Hybrid Housing is such a great investment.
  • Controllable: fees are paid in advance; we do background checks before check-in and unruly guests can be removed quickly
  • Huge Demand
  • Occupancy and Pricing flexibility to maximize revenue
  • Recession resistant
  • Purchase assets at significantly below replacement value
  • Management team has extensive knowledge on how to most efficiently reposition these assets for maximum return

Sign up & download your free article today!

Learn how to ensure you won’t outlive your 401k

You have Successfully Subscribed!