Services
Lennox Capital is singularly focused on lodging investment and management opportunities. We target underperforming hotels and resorts and development opportunities ranging from Select Service Upper-Midscale properties to Full Service Luxury properties, in locations that have strong diverse demand drivers. Our geographic focus will be limited to North America, favoring markets and market fundamentals in which we have previous experience. Our intention is to self-manage Select Service properties within regional proximity of our office, while contracting with 3rd party management companies for full service as well as properties outside of this radius. The principals of Lennox Capital have spent their careers, almost 50 years collectively, successfully implementing similar investment and management strategies.
Investment Underwriting and Acquisition
- A successful investment begins with buying correctly. Lennox Capital’s principals take a patient and disciplined approach. Opportunities are sourced through industry relationships developed over the years, and thoroughly scrutinized in a proprietary modeling process. Existing market and operating knowledge contributes to the data for this analysis, along with industry reports and contractor/vendor input. Before choosing to aggressively pursue an opportunity, it is common to have already passed on dozens of other opportunities. We insist on a reasonable basis and right-sized capitalization for a project. There is no compromise on this point, even if it hinders our ability to complete more deals.
Strategic Planning
- We begin the underwriting of an investment with the end in mind. During the underwriting process, we discuss the project with brands, managers, architects, designers, contractors, consultants, etc to lay groundwork for what the property will become. It is during this process that we build the foundation for the eventual successful implementation, including pulling together an “A” project team. The detailed approach we take in developing the roadmap for the ultimate branding and operating model for the property reduces investment risk at the front end of the project.
Implementation and Positioning
- The principals have managed a countless number of projects over their careers, varying from new construction, adaptive re-use, redevelopment, renovation, repositioning, re-branding and re-design. Their success has centered around the fundamental approach of being “hands-on”. The principals began their careers as mid-manager task masters and continue to use those skills in project management, while simultaneously drawing on their years of asset management experience to keep their sight on the big picture. Pat Lowery’s experience in Sales and Marketing drive the creative strength of the team. Jeff Barone’s experience in Accounting and Finance drive the analytical side. It is these complementary and unique character traits that drive the principals to successful project completion.
Operational Management/Asset Management
- A hotel operation must have the right staff to provide strong customer service, which ultimately maximizes occupancy, average rate, profitability, and property value. Lennox Capital was founded in the belief that well-chosen staff will maximize hotel hospitality if they are provided the right resources, training, and incentive. Starting their careers with Ritz-Carlton, the principals are first and foremost service driven, and they draw on their hospitality backgrounds and experience with best practices across multiple brands and operations to contribute to staff development and performance.
Real Estate Asset Management
- In addition to driving operating excellence, the principals focus on maximizing real estate value by keeping a keen eye on matters outside of management’s operational purview. Once a project has stabilized operationally, incremental value can be realized through excess cash reinvestment into adaptive re-uses of space or additional services. Capital re-structuring can be done to right-size financing leverage, improve investor equity returns, and free up equity capital to deploy on another project. The principals have been intimately involved in complicated projects across the spectrum of financial structuring, freehold, leasehold, and public incentives.
Consulting
- Lennox Capital will selectively pursue consulting and management arrangements in special circumstances. While our key focus will be to pursue value-add and development opportunities for ownership, the principals recognize that taking certain engagements can lead to further investment opportunities. And the principals take pride in providing thorough communications and reporting to clients, just as they do for their investors. Services can be contracted on an a la carte basis depending on the client’s needs.