Hotel RL Washington DC
Equity investment in the renovation and rebranding of a historically underperforming hotel in one of the most vibrant and desirable areas of Washington DC
WHO WE ARE
Shelbourne Capital, LLC
Shelbourne Capital LLC is a real estate investment firm focused on opportunistic investments in commercial real estate throughout the United States. We leverage our relationships, knowledge and experience across a broad spectrum of potential investments. Typically we strategically invest alongside experienced operating partners. Our highly experienced team is able to source, structure and finance transactions with the goal of achieving superior, risk-adjusted returns for our investors.
We believe that the foundation of our success is based upon implementing creative strategies that unleash hidden value in properties missed by the larger market. These opportunities often involve assets that require development, repositioning, refurbishment or restructuring, as well as those held in illiquid ownership structures or owned by motivated sellers.
Falcon Investors, LLC
Falcon Investors is an opportunistic real estate investment platform with a nationwide focus owned and founded by David Reis (see bio). Falcon has co-invested in every one of Shelbourne’s hotel deals, and its principal, David Reis, also developed, owns and is the managing member of St. Regis Deer Valley, Utah. In addition to hospitality investment, Falcon, through its principals, has developed over $500 million of senior living facilities spanning the continuum of care from nursing homes to assisted living communities and full-service continuing care retirement communities.
Shelbourne Falcon Investors
Shelbourne Capital and Falcon Investors created a partnership, Shelbourne Falcon Investors, to co-invest in opportunistic hospitality deals such as the Hotel RL Washington DC.
Joint Venture – RLS DC Venture LLC (“Joint Venture”)
In early 2015 Red Lion Hotels Corporation (RLHC) and Shelbourne Falcon entered into a Joint Venture in which RLHC sold a 45% stake in 12 of its hotels containing 2,531 rooms to a Shelbourne Falcon affiliate. The entire transaction totaled $123 million including $26 million to renovate these hotels. After paying off existing debt, RLHC will use the balance of the funds to aggressively pursue subsequent acquisitions such as the Hotel RL in Washington DC. These prior collaborations, along with the current Joint Venture, will create a dynamic synergy that will be laser focused on successfully introducing a brand new Hotel RL to the Washington DC market.
Since the firm’s founding in 2009, Shelbourne and its affiliates have invested in transactions representing over $650M in total capitalization.
From 2009 to 2013, Shelbourne partnered with Richfield Hospitality to acquire and invest in fundamentally sound hotels which were mismanaged or improperly positioned. The partnership acquired several full-service hotels in strategic markets with strong economic drivers.
In 2014, Shelbourne Falcon formed a Joint Venture with RLHC to recapitalize their existing core portfolio of owned hotels. This Joint Venture has expanded to include a pipeline of future acquisitions and developments as Shelbourne Falcon is RLHC strategic capital partner. RLHC and Shelbourne are together actively evaluating opportunities in the top national lodging markets.
In total, Shelbourne currently owns 18 hotels comprising over 3,600 rooms in markets across the United States. The entire portfolio generates approximately $100 million in revenues and approximately $20 million in NOI. Across the entire portfolio total revenues and NOI are up 11% and 36%, respectively.