NATIONAL REPORT—Revelo Hospitality, a yield-focused private equity real estate fund based in Dallas, New York and San Francisco specializing in hotel investments, has identified U.S. markets that its algorithm, which includes market vaccination rates, has forecasted as the best positioned for recovery in 2021:
- Phoenix-Mesa-Chandler, AZ
- Miami-Fort Lauderdale-Pompano Beach, FL
- Denver-Aurora-Lakewood, CO
- Washington, DC-Arlington-Alexandria, VA
- San Francisco-Oakland-Berkeley, CA
- Minneapolis-St. Paul-Bloomington, MN
- Dallas-Fort Worth-Arlington, TX
- Tampa-St. Petersburg-Clearwater, FL
- Houston-The Woodlands-Sugarland, TX
- Atlanta-Sandy Springs-Alpharetta, GA
Pranav Bhakta, managing partner, Revelo, acknowledged the fund has created a proprietary algorithm called the RevPAR COVID Index, among others, that utilize unique data points with its big data approach. He said historical asset performance is important, but the Revelo team finds more predictive insights in data related to a market’s potential for recovery.
The Revelo team sees an enormous amount of capital on the sidelines looking for the right entry into the market, and they are not alone. Investors surveyed as part of Colliers International Group’s recently published market study expect a 50% surge in investment activity in the second half of the year, pointing to a broad-based renewal of confidence in the property market as a result of recent vaccine developments and continued government stimulus.
Sensing a unique market opportunity for 2021, Bhakta, together with Edward Maynard, formed Revelo Hospitality in 2020. The combined team has more than 90 years of operational and branding development experience with new-builds, transitions, takeovers and openings with more than $4.8 billion in combined hospitality transactions.
“Unlike most other real estate funds, we rely on our forward-looking analytics,” said Bhakta, “It’s not about distressed assets as much as its about identifying properties best positioned to recover.”