What I Look For
- Potential for repositioning or upscaling (Boutique Hotel, Manor)
- Need for renovation (CAPEX) or major investment
- Relative underperformance compared to the market (Low RevPAR)
- Potential for corporate or premium clientele (Yield Management)
- Full transparency of financial data (Audited financial statements)
What You Get
- Capital injection for works and revitalization (PADAT Financing, Investissement Québec)
- Complete operational and strategic expertise (Hotel Turnaround)
- Clear and rigorous execution plan to maximize EBITDA
- Significant improvement in revenue and profitability (Operating Margin)
- Structured exit option to maximize market value
Illustrative Partnership Model
My typical structure aligns interests. Racine takes a stake to drive execution, while the owner retains a significant share.
Racine Hotels (~70%)
Capital contribution, project management, expertise.
Owner (~30%)
Contribution of existing asset, continuity (optional).
Numerical Example (Illustrative)
Purchase at $5M → Transformation Plan → Potential higher valuation depending on market → Eventual Sale.
Warning: This example is purely illustrative. No guarantee of return. Results depend on market conditions.