Dovehill Capital Management Sets Sights on $30m with Launch of Second Investment Fund Investing in Experiential Hotels

Fund II builds on the success of DoveHill’s Fund I, which made ten investments totaling over 4,600 keys and managed $640 million within three years.

DoveHill Capital Management (DoveHill) is launching its second investment fund, DoveHill Opportunity Fund II (Fund II). The company seeks to raise $30 million to continue its unique real estate investment strategies.

Fund II will focus on three primary strategies: investing in experiential hotels, participating in structured equity, and capitalizing on opportunistic value-add deals. The company is seeking long-term investors who can appreciate the benefits of both on- and off-market deals and the ability to invest directly with a vertically integrated investment manager.

Jake Wurzak, founder and CEO of DoveHill, emphasized the company’s ability to source unique deals through its relationships and reputation in the industry. This advantage allows DoveHill to provide its partners access to various investment opportunities.

Fund II builds on the success of DoveHill’s Fund I, which made ten investments totaling over 4,600 keys and managed $640 million within three years. The fund is expected to produce a gross equity multiple of over 2.0x and a 20% IRR. Preferred equity investments within Fund I accounted for half of the fund’s investments, with 90% sourced from their proprietary off-market network.

Due to the current market cycle, DoveHill’s focus remains on preferred equity, which allows for asymmetric returns. This strategy is complemented by DoveHill’s ability to structure unique preferred equity investments and act as a strategic partner.

The company notes that traveler preferences have changed after the pandemic, providing opportunities for unique non-commoditized hotels. Charles Paloux, Executive Vice President for Investments, highlighted DoveHill’s access to unique deals and its track record.

DoveHill, established in 2011 and based in Fort Lauderdale, Florida, is a hospitality investment and development organization. The company focuses on adding value to real estate through remodeling and redesigning to create operational efficiencies and memorable guest experiences. DoveHill also prioritizes environmental, social, and governance principles in the design and operation of all its investments.