Investing in Resorts with Wedding Venues - Strategy Review Interview

TL;DR

Accountable Equity specializes in investing in resort properties with wedding and event venue components, leveraging their expertise to generate profit and force appreciation.

Transcript

hello everybody my name is richard c wilson founder of the family office club we've got my friend here with me today josh mcallen from accountable equity how are you josh great great to be here great community thank you so much for all you do with family office club sure yeah i appreciate you being on the podcast uh maybe a year or 18 months ago on... Read More

Key Insights

• 🤵 Accountable Equity focuses on resorts with event and wedding components, leveraging their expertise to create unique and experiential offerings.
• 👨‍💼 They consider their resorts as robust businesses and believe that operational intensity can be advantageous for their strategic goals.
• 👻 Construction and renovation are essential aspects of their investment strategy, allowing them to enhance the properties and force appreciation.
• 🏍️ Accountable Equity has successfully navigated various real estate cycles and considers themselves specialists in resort property investing.
• 😋 Food and beverage operations play a crucial role in the success of their resorts, and they have leveraged their expertise to drive profitability and mitigate seasonality.
• 🥘 Their unique approach prioritizes being food and beverage experts first, allowing them to stabilize the property's revenue streams and improve the overall guest experience.
• 🧡 Accountable Equity is actively seeking resort properties in the $10 to $40 million range, with a particular focus on locations with a strong demand for weddings and events.

Questions & Answers

Q: How intensive are the operations of resorts with event and wedding components?

Resorts with event and wedding components are operationally intensive due to the varied revenue streams and the need to provide exceptional experiences for guests. This intensity can be perceived as either positive or negative depending on the investor's perspective.

Q: How many resorts has Accountable Equity invested in so far?

Accountable Equity has invested in multiple resorts, starting with a partnership in three regional resort properties in New Jersey. They have since become the sponsor of a new company and have successfully completed two more resorts, with two additional ones under contract.

Q: Do Accountable Equity properties require significant renovation and construction?

Accountable Equity looks for properties that require a notable amount of construction and renovation. They prefer mature properties with historic value, allowing them to restore the soul of the property while incorporating modern upgrades. This approach enables them to increase the profitability and attractiveness of the venues.

Q: Do Accountable Equity resorts qualify for historical tax credits?

While Accountable Equity is not an expert in historical tax credits, they see the potential value in pursuing the opportunity for properties that meet the criteria. They focus on restoring the soul of the property and incorporating historic tax credits may align with their vision.

Summary & Key Takeaways

• Accountable Equity focuses on investing in resort properties with lifestyle, event, and wedding components, creating experiential offerings for guests.

• They consider both the operational intensity and revenue streams of their resorts to leverage their expertise in commercial real estate and force appreciation.

• The company has invested in multiple resorts, utilizing their knowledge of the industry and various real estate cycles to succeed in each project.