USLI - U.S. Lodging Investors

Lakeway Resort & Spa (Austin, TX)

Hilton Long Island/Huntington (Melville, NY)

Hilton Orrington/Evanston (Evanston, Il)

DoubleTree by Hilton O'Hare Rosemont (Rosemont, Il)

Hilton Bellevue (Bellevue, Washington)

Overview

U.S. Lodging Investors (USLI) identifies and acquires first-class hotel assets throughout the United States, whether encumbered or un-encumbered by management. USLI joint ventures with institutional equity investors and provides aggressive asset management services for its partners. Seeking value-added investments, USLI has the experience and capabilities to recognize under-valued hotel assets and the skills to maximize value for superior returns.

Principals

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Mark J. Rosinsky Chief Executive Officer

Mark J. Rosinsky is Chief Executive Officer of U.S. Lodging Investors (USLI). Mark sources potential acquisitions of value-add hotel properties, underwrites them, and crafts joint ventures with institutional equity investors to purchase assets. Mark has over thirty-five years of experience in the hospitality industry.

A graduate of Cornell University, he earned a Bachelor of Science in Hotel Administration. After a year working with Stephen Rushmore, Sr. at Helmsley Spear Hospitality Services, Mark became an officer at Chase Manhattan Bank, appraising in all sectors of real estate, with a focus on hotels. Subsequently, Mark re-joined Rushmore at Hospitality Valuation Services (HVS International) as one of its founding members. During his eleven-year tenure at HVS, he performed numerous appraisal and consulting assignments throughout the United States and abroad. Mark then transitioned his focus to hotel acquisitions at HEI Hotels & Resorts, being instrumental in rapidly growing the company from 4 to 22 properties, until its acquisition by Starwood Lodging Trust. In 1997, Mark partnered with Murray Dow to co-found The Dow Hotel Company. As Senior Vice President – Hotel Investments, he led all of the firm's property acquisition efforts as well as procuring numerous third-party management contracts. Total assets secured by him exceeded $300 million.

Mark founded USLI in January 2015 to pursue a broader range of hospitality asset acquisitions.

Case Studies

Lakeway Resort and Spa Austin, TX

The Lakeway Resort and Spa, located in upscale suburban Austin, Texas, was acquired during July 2012. This regional conference center and resort contains 168 rooms plus 8 condos (in a rental pool), 24,000 s.f. of meeting space, several swimming pools, a spa and various food & beverage outlets. The property was purchased in a foreclosure situation and the acquisition price was $13,850,000 – with closing costs, working capital and CapEx, the all-in investment was approximately $21,100,000. Under prior management, the hotel achieved a negative NOI. By January 2014, primarily via cost-cutting, the NOI increased to a point where the property could be re-financed with enough cash out to return virtually all of the initial equity investment. With a sale in February of 2015 for approximately $33,500,000 the total project equity IRR achieved a rate of about 40%.

Hilton Long Island/Huntington Melville, NY

During June 2011, the Hilton Long Island in Melville, New York was acquired. This suburban hotel contains 303 rooms, 26,000 s.f. of meeting space, indoor and outdoor swimming pools, a steakhouse restaurant, a three-meal-per-day restaurant and a cocktail lounge. The property was chosen from a large portfolio of foreclosed assets and was managed by a major hotel operator. In 2010, the hotel’s NOI was negative $112,000 and the asset was purchased for $34,500,000. With closing costs, working capital and CapEx, the all-in investment was approximately $50,000,000. At year-end 2014, the NOI was approximately $4,400,000, providing a cash-on-cash return for the property of 8.8%.

Crowne Plaza Portland - Lake Oswego Lake Oswego, OR

During December 2003, the Crowne Plaza Portland – Lake Oswego, situated in an upscale suburb of Portland, Oregon, was acquired. This hotel contains 160 rooms, 3,200 s.f. of meeting space, an indoor swimming pool, a six-story atrium, a three-meal-per-day restaurant and a cocktail lounge. The property was selected from a large portfolio offering and was managed by a major hotel operator that had no other presence in the Pacific Northwest. In 2002, the NOI was less than $500,000 and the hotel was purchased for $7,900,000. With closing costs, working capital and CapEx, the all-in investment was approximately $9,000,000. The property was a long-term investment for a fund within an insurance company. Subsequent to a complex sales process, the property transacted in October 2014 for $13,250,000, providing an unlevered 11.5% IRR (the property was not financed during ownership). If leverage was assumed, the IRR to equity would have been approximately 20.6%.

Hilton Bellevue Bellevue, Washington

The Hilton Bellevue, located in upscale suburban Seattle, Washington, was acquired during June 2005. This hotel contains 353 rooms, 60,000 s.f. of meeting space (including an exhibition hall), an outdoor swimming pool, a nine-story atrium, a three-meal-per-day restaurant and a cocktail lounge. Prior to purchase, the asset was managed by Hilton Worldwide under its Doubletree brand. The property has been owned as a long-term investment by a major pension fund. During the past several years, the unlevered cash-on-cash return for the property has been roughly 10%.