“AOP Area of Protection – an exclusion zone or restricted area around a hotel in which the operator/franchisor agrees not to have another hotel operating under the same, similar or other specified brands.”
There’s a reason that luxury hotel investors have AOPs with operators and franchises.
It’s because having too many properties in the same market, under the same banner, creates a scenario where the properties begin to compete directly with each other, and thus start to cannibalize profits per property.
This is why Jack Laurier is extremely selective about the properties we source and why we purposely cap the number of assets we manage per market segment.
It’s a smarter, more efficient model that allows for stronger concentration on the stability and profitability of each asset operation.
Discover how Jack Laurier uses luxury SFL real estate to generate free cash flow and pursue asymmetric, risk-managed returns.