Hotels · Resorts · Lifestyle repositionings
Elmsworth Partners acquires and repositions hotels and resorts in supply-constrained markets, investing alongside family offices and institutional co-investors. The firm is led by Mark W. Brugger, who co-founded DiamondRock Hospitality and ran it as a public company for more than fifteen years.
The same team, the same playbook, now investing for a small group of partners. See the record
Results are DiamondRock Hospitality's, achieved under Mark Brugger's leadership as CFO and then CEO, and are not Elmsworth Partners'. Past performance is not a guarantee of future results.
Every DiamondRock resort that worked followed the same sequence: a low basis in a market that cannot add supply, then brand, operator, product and revenue mix moved together.
Elmsworth Partners targets full-service and lifestyle hotels of 120 to 250 keys in supply-constrained leisure, drive-to resort and select urban markets, with total capitalizations of roughly $40 to $80 million. Each asset is bought at a discount to replacement cost and comes with a defined capital program of 12 to 18 months.
Value is created in the operations, not in the financing: a brand or operator change where it adds rate, rooms and public-space renovation, and food and beverage that the market will pay for.
Capital is raised deal by deal with an anchor family office and a small group of co-investors, with the sponsor investing alongside. Investors see each asset, its business plan and its downside case before they commit, and have the option, not the obligation, to participate in the next one.
Renaissance to Autograph Collection, new operator
17.5%
2019 EBITDA yield on total cost
Vail Marriott to the Luxury Collection
$305K
basis per key against ski-resort trades of $1–2M
Sheraton Suites to independent to Margaritaville
~2x
EBITDA, purchase-year forecast to 2021 expectationResults are DiamondRock Hospitality's, achieved under Mark Brugger's leadership as CFO and then CEO, and are not Elmsworth Partners'. Past performance is not a guarantee of future results.
Mark W. Brugger co-founded DiamondRock Hospitality (NYSE: DRH), led its IPO and served as chief executive for more than fifteen years, scaling it from zero to $1 billion of revenue, $3.5 billion of assets and 9,000 rooms. He has completed roughly $7 billion of real estate transactions. About Mark
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