Roger Wilson: When Ken says “operator,” we're not a management company. We're an owner. We’re not tied to one management team. You are always constrained by a number of restrictions associated with a management company. The management company has to be capable of managing that hotel and not all management companies can manage every hotel. Some do select service, some do full service, some are resort managers, etc.

And dealing with guys from funds are obviously focused on funds from their income stream from their management piece and it creates conflicts in the normal cycle of things.

Wilson: It also limits the range of hotels that you can really look at to acquire, because if you're really looking at fitting your model into a particular hotel and these management companies don't want to invest in a hotel that they're not the managing. Our primary business is owner and value creator.

And so Roger is now full-time out in the market, evaluating acquisitions and trying to build up our new portfolio.

GlobeSt.com: Is there a set amount of money you’re looking to put out or number of acquisitions you’re looking to buy?

Wilson: We're looking at somewhere in the range of 25 to 35 deals a week and a lot of those don't work, we don't want to be involved. We're actively negotiating the purchase between six to eight hotels right now. And we don’t expect to close anything more than that by the end of the year. It would be six, it could be eight , it could be two. We're not going to close on a deal unless it makes economic sense and we think we can deliver our returns to our investors because our only returns come from value improvement in the acquisitions that we buy. We don't have management administration fees that are laid on from a management company perspective.

Clark: Being this type of platform, you can be very opportunistic. You don't have to be into one particular segment of hotels. From three- and four-star hotels to select service, we can go in using the full tool-box.

GlobeSt.com: Does this provide more flexibility?

Wilson: We didn’t raise a fund that has a four to seven year timeframe. We don’t have a bunch of money like the REITs do where we have to spend capital or we’re not going to be able to raise more capital. And we think a lot of the deals that have been done in the market so far have been overpriced, basically. And there are funds and REITs that need to get capital out. Because of the bubbled-market, we think they’re buying things that ultimately, they may make a small return on it, but we they won’t make the same kind of returns that we think you should make relative to the risk.

That gives us the opportunity to look at deals that have complicated debt structures and probably have mixed-used components and failed condo leases to them, so we have a lot of different ways and opportunities to go after complicated deals, while funds and REITs are looking for cash-flow.

GlobeSt.com: CHM isn’t looking for cash-flow?

Wilson: Our ability work through and find value in those more complicated deals is why we’re able to do deals that deliver a lot of value to ourselves and our asset clients, as opposed to going out and finding a stabilized asset that was hit a little bit by the economy and cash-flows are off, but you know they are going to come off in the next few years. But you’re buying a 6% or an 8% return. We’re looking at deals that the current owner has owned it for three to five years, a note is due and because of where the market is, he needs a $10-million to $20-million infusion. So where we bring in the new capital, do some renovation, rebrand it if we need to, bring in a new management company if we need to or just improve the product and give it to the manager if we like them, and give them the opportunity to reposition the hotel as a top tier hotel in the market.

Clark: We’re working some deals that need to be renegotiated and restructured, we’re just looking for value and are opportunistic.

GlobeSt.com: How is that different from everyone else?

Wilson: We’re looking at the exit strategy first, so that’s what’s driving our acquisition. Our ability to go in and really restructure a hotel and the capital structure where there’s a new market for it at a much higher price.