FAQ

Bay Street Hospitality is a global hotel investment fund offering quant-driven exposure to the hospitality sector. The fund invests across a diversified portfolio of hotel assets in both high-growth emerging markets and stable developed economies. Through a quantamental investment approach—blending quantitative data analysis with fundamental research—Bay Street Hospitality targets optimized, risk-adjusted returns across economic cycles.

The fund maintains exposure to a globally diversified set of markets, including the Americas, Europe, ASEAN, APAC Ex-ASEAN and the Middle East. Market selection is based on a rigorous evaluation of GDP growth, tourism trends, regulatory stability, demographic shifts, and alignment with long-term hospitality demand.

Bay Street Hospitality invests across the full spectrum of hotel categories, including limited-service, midscale, upscale, luxury, and ultra-luxury assets. The strategy is designed to capture value across economic tiers, providing allocators with balanced exposure to both income-generating properties and assets with long-term appreciation potential.

Minimum investment thresholds vary by fund vehicle and investor type. Institutional investors, family offices, and qualified high-net-worth individuals are invited to contact the investor relations team at [email protected] for detailed information on minimum commitments and eligibility requirements.

Risk management is embedded in every aspect of the fund’s investment process. Bay Street Hospitality mitigates risk through multi-layer diversification—across geographies, hotel types, operators, and exit scenarios. The fund also deploys foreign exchange hedging, political risk monitoring, and deal-level structuring to protect capital and enhance downside resilience.

Prospective investors can contact the fund’s investor relations team at [email protected] or submit an inquiry through the Contact Us page. The fund welcomes interest from qualified institutional allocators seeking hospitality-sector diversification through a data-driven and globally active platform.

Return expectations are dependent on market conditions, deal structuring, and asset performance. The fund’s quantamental strategy is designed to deliver superior risk-adjusted returns relative to traditional real estate benchmarks. Hotels have historically demonstrated higher total return potential due to operational leverage and tourism-linked growth, particularly in the firm’s target regions.

Bay Street Hospitality employs a flexible, multi-path exit framework. Strategies may include strategic sales, recapitalizations, public market exits, or negotiated asset takeouts. Exit planning is embedded at deal inception, and the fund actively monitors market conditions to optimize timing and outcome on behalf of investors.

Hotels are mispriced and misunderstood. Post-COVID, they’ve outperformed multifamily and office in RevPAR and NOI growth, yet capital flows haven’t returned. We’re acquiring assets at 30–50% discounts to replacement cost, with stabilized yields double those of multifamily. The gap between fundamentals and pricing is our edge—and your opportunity.

Complexity and perceived volatility scare most investors away. We were built to run toward complexity, not from it. Bay Street’s single-sector focus and operational expertise de-risk what others avoid—and unlock proprietary deal flow most never see.

Bay Street Hospitality uses an institutional-grade currency hedging program to manage FX exposure across non-USD markets. Tools include long-dated FX forwards, options strategies, and synthetic hedging instruments. This allows the fund to shield performance from volatility in exchange rates while maintaining geographic flexibility.

The fund partners with globally recognized hotel operators, regional developers, and technical advisors with deep market knowledge. These relationships provide access to proprietary deal flow, localized operational expertise, and collaborative value creation strategies. Strategic alignment with experienced partners is a cornerstone of the fund’s execution model.

We’re globally recognized as hospitality-first capital. Local operators, family groups, and government stakeholders bring us deals before brokers even hear about them. Our speed, flexibility, and minority-capital structuring make us the preferred partner in tight markets.

Fund-level target: 14–16% net IRR. Deal-level: 17–25% IRR, with 8–10% stabilized cash-on-cash. By layering in our proprietary illiquidity premium, we isolate alpha from noise and price risk where others can’t see it.

Americas Europe ASEAN APAC Ex-ASEAN Middle East Opportunistic Each region is modeled with NCREIF-based benchmarks + our illiquidity premium, so capital flows where the risk-adjusted return is clearest.

We practice “impact that cash flows.” Many deals benefit underserved operators, Opportunity Zones, or sustainable repositionings—but we don’t do ESG theater. We do good by doing smart, durable deals.

Local hedges where appropriate. But more importantly, we underwrite in real terms. Many leases and cash flows are USD- or Euro-pegged. And we prioritize countries with capital convertibility and legal consistency.

Two words: structure and spread. We engineer downside protection via control rights, income-preferred capital, and inflation-adjusted contracts. Then we diversify—by region, brand, operator model. The result: stable cash flow in a dynamic asset class.

We’re backed by leading family offices, endowments, and forward-thinking institutions—investors who value real assets, real yield, and real alignment. You’ll be in good company.

It starts with our buy discipline—deep discounts to intrinsic value. Then we layer protections: preferred equity positions, minority veto rights, liquidity waterfalls, and hard-asset collateral. You’re never buying air—you’re buying protected cash flows.

2–5 years at the asset level, tailored by strategy and geography. Our exit options are dynamic—refis, REIT rollups, brand buybacks, or fund-to-fund trades. No rigid 10-year lockups—we optimize for returns, not fund marketing conventions.

We optimize post-tax returns via REIT blockers, Opportunity Zones, cost segregation, and refi-and-hold. Our structures are surgical—turning gross alpha into actual take-home yield. It’s tax-smart hospitality investing at scale.

Credit limits upside. PE seeks control and often moves late. We operate in between—minority capital with asymmetric upside. We’re faster, more flexible, and often get better terms than either, because we come before the crowd.

Hotels are agile—they reprice daily. We hedge rate exposure with low leverage, prioritize high cash-on-cash, and diversify across uncorrelated geographies. Many assets even gain in a downturn due to travel arbitrage or FX tailwinds.

Dislocation is already closing. When REITs and institutions start bidding, today’s discounts evaporate. The best hotel deals happen just before they look obvious in hindsight.

We co-invest in every deal and only get paid after you do. Our carry kicks in only after return of capital + preferred return. We’re LP-first by design. And we’re long-term capital, not transactional tourists.

300+ opportunities reviewed annually. <5% conversion rate. Our filter? Real operators, real cash flow, real value. No speculative land. No blind pools. Only asymmetric risk-return profiles that fit our system.

Lisbon: Acquired off-market boutique hotel from a family group. Minority recap + rebrand. Brought in new operator, set exit path to REIT aggregator in 36 months. Underwrote 18% IRR. Deal never hit the market.

Investors chasing 5x VC returns or fully passive LPs. This is an actively managed strategy designed for those who want curated, cash-generating global exposure—not a blind ride.

Yes. The fund produces periodic investor reports outlining strategy updates, portfolio composition, performance metrics, and market insights. To request further information or schedule a meeting with a member of the team, please contact [email protected].

The quantamental investment approach employed by Bay Street Hospitality integrates statistical modeling and machine learning with traditional real estate underwriting and operator-level diligence. This dual-lens methodology enables the fund to assess macroeconomic, geopolitical, and sector-specific factors in tandem—enhancing the ability to identify high-conviction investment opportunities and manage risk dynamically.