There will most certainly be opportunities to come from the market dislocation related to the coronavirus pandemic—but the hospitality sector isn’t at the top of a lot of lists. The market has been one of the hardest hit by the pandemic, a long with retail. However, a new investment firm plans to focus on hospitality opportunities create by the new economic cycle. Anagram Ventures will focus on the development and investment in hospitality assets and create value for stakeholders. Sajan Hansji will serve as president of the new firm.
“The effects of the pandemic have been devastating to the hospitality industry,” Hansji tells GlobeSt.com. “Extremely viable assets were suddenly faced with no cash flow for months. Deal structures that worked previously are no longer tenable and will require some level of help. The help could come in the form of equity, debt, or some combination of the two. Our team’s experience will also allow us to provide creative and reasonable solutions to Owners who may be in a tough situation with their investors or lenders.” The San Diego-based firm will focus on select service and full-service hotels in a wide range of geographic markets throughout the US, including urban, coastal and secondary markets. The firm’s leadership has experience in high-barrier-to-entry markets, specifically, and has worked on more than $600 million in hotel deals. The new firm will specifically target debt restructuring, alternative uses of real estate, brand repositioning or a reduction in operating costs in hospitality properties.
This is an uncertain time to launch a new company, but Hansji says the market uncertainty doesn’t outweigh the opportunity. “Of course there’s always uncertainty,” he says. “Hotels, however, will retain the underlying real estate value no matter the economic conditions—it’s simply a matter of navigating the path to profitability. Anagram Ventures sees the coming months and years as a period of great promise for stakeholders. Through a nuanced understanding of market trends, consumer needs, and property valuations, we will identify and acquire assets that we believe will yield strong returns. Our objective is to sustain in the current and near market conditions for at least 30 months.”
In the next 12 months, will focus on growing its recognition and will place strategic investments. “Establishing Anagram Ventures as a one-stop shop to help Owners and Lenders navigate this difficult situation is our primary goal,” says Hansji. “We are solution driven and relationship focused. We will be strategic in our investments to help all stakeholders involved.”
Ultimately, he also sees the company benefitting the recovery of the overall hospitality industry. “The hospitality industry also employs one in every twenty-five jobs in the US,” he says. “If we can get those folks back to work and provide a better financial structure for an asset, it’s a win-win.”