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Active Hospitality

Alcove Grand Hotel

Savannah, GA

Asset Type Hospitality
Location Savannah, GA
Year Acquired 2020
Square Footage 196,000 SF
Occupancy Rate 78% (trailing 12 mo.)
Current Value $88M
Property Overview

A 228-key independent luxury hotel acquired through a note purchase and repositioned under third-party management with a full rooms and public-space renovation.

Investment Thesis

Countercyclical hospitality entry at a pandemic-driven discount in a drive-to leisure market with durable demand fundamentals.

Strategy

Note acquisition, deed-in-lieu resolution, brand-independent repositioning, and revenue management overhaul.

Market Overview

Savannah’s historic district maintains among the highest weekend occupancy rates in the Southeast with high barriers to new supply.

Value Creation Plan

Completed $14M renovation in 2022; food-and-beverage concepts re-let to acclaimed regional operators, lifting non-room revenue 42%.

Financial Highlights
$52M Acquisition Value
$88M Current Valuation
$7.4M NOI
8.4% Cap Rate
22.9% IRR
1.9x Equity Multiple
Investment Timeline
  1. Q4 2020

    Note Acquisition

    Purchased senior note at discount to face value.

  2. Q3 2022

    Renovation Complete

    Delivered $14M rooms and public-space renovation.

  3. Q2 2024

    Refinancing

    Recapitalized at stabilized valuation, returning 60% of invested equity.