FORT LAUDERDALE, Fla., Jan. 23, 2024 — DoveHill Capital Management (DoveHill), known for its hospitality-centric unique approach in the real estate space, is launching DoveHill Opportunity Fund II (Fund II), an investment vehicle focused on three competitive-edge strategies: 1) Experiential Hotels; 2) Structured Equity and 3) Opportunistic Value-Add.
With Fund II, DoveHill aims to raise $30 million to further capitalize on its highly differentiated strategies and seeks long-term partners who appreciate the unique advantages of both on- and off-market deals and the ability to invest directly with a vertically integrated investment manager.
Founder and CEO Jake Wurzak says, “We enjoy the unique advantage of being able to source both on- and off-market deals for our investors. DoveHill has always had an advantage in sourcing opportunities not only through brokers but also through our relationships and reputation in the industry. We’ve created an investment ecosystem allowing us to invest in various parts of the capital stack with best-in-class institutional partners, family offices, and high-net-worth investors. In short, we offer our partners entry into a spectrum of deals that they could not otherwise access.”
Fund II is founded on the strategies of DoveHill’s Fund I, which had ten investments totaling over 4,600 keys and $640M under management within three years, producing an expected gross equity multiple over 2.0x and 20% IRR. Preferred equity investments made within Fund I represented 50% of the Fund’s investments and 90% of the investments in the Fund were sourced through our proprietary off-market network.
Preferred equity will remain a key focus of Fund II, given the current market cycle which is allowing for asymmetric return that is further enhanced by DoveHill’s proven ability to structure unique preferred equity investments and act as a strategic partner.
The core strategies of Fund II, as with Fund I, are opportunistic on- and off-market acquisitions, structured equity, and experiential hospitality in markets with high barriers to entry.
Traveler preferences have shifted post-pandemic and now more than ever travel experiences are prioritized over many other discretionary personal and corporate expenditures which will result in significant value creation opportunities for non-commoditized hotels.
Executive Vice President for Investments Charles Paloux states, “Our focus is on unique deals where we can add immediate value. We have access to deals most don’t, and this allows us to establish a track record that has put us at the table with best-in-class funds in the space.”
With Wurzak Hotel Group, DoveHill’s affiliate management company, the company has boots-on-the-ground, oversight on every deal, and strategic relationships. DoveHill distinguishes itself as an operator in the real estate space by creating operational leverage through its proprietary knowledge.
About DoveHill Capital Management
Established in 2011 and headquartered in Fort Lauderdale, Florida, DoveHill Capital Management is a vertically integrated hospitality investment and development organization.
As part of its strategic vision and after investing at attractive entry points, DoveHill works to remodel and/or redesign the real estate to create both operational efficiencies and memorable guest experiences.
The company focuses on value-add and other strategies to create a unique sense of place to trigger lasting impressions that drive long-term results for our partners and investors.
DoveHill prioritizes environmental, social, and governance principles in the designs and operations of all investments. The company aims to further integrate an environmentally sustainable and socially responsible approach to the growth of its portfolio of highly differentiated hotel properties.
For more information about DoveHill Capital Management and Fund II:
Visit: www.dovehillcos.com
Investor Contact: Investor Relations – [email protected]
Media Contact: Meaghan Peeler – [email protected] 215-689-0245
SOURCE DoveHill Capital Management, LLC
