After striking out on a New York Mets ownership bid, former Yankee Alex Rodriguez is joining Miami-based private equity firm CGI Merchant Group to invest in hotels.
The new investment fund looks to raise $650 million to acquire and develop hotels as the travel and tourism industry recovers from the COVID-19 pandemic. Maverick Commercial Properties is also on board with the venture, which will develop properties with Hilton Worldwide.
“We believe we can acquire assets that are strategically positioned to be in the top-performing percentile once restrictions are eased,” said Rodriguez, who will also invest personal money into the fund.
Hotel Industry Outlook:
- Year-to-date hotel sales volume down 84% year-over-year as of October
- Sale prices, however, are down just 3.3%
- First week of December occupancy down 38% compared to 2019
- Hotel executives don’t expect recovery to 2019 numbers until 2023
The fund’s first investment, back in June, was the 129-room Gabriel Hotel in Miami. Miami, Seattle and New York City are focus markets, but investments across North America and the Caribbean will be considered.
This isn’t Rodriguez’s first real estate play. He launched his own real estate investment company in 2003 and has acquired more than $800 million worth of property across the country since.
