Scale follows selection. Never the reverse.
We source only assets we would be comfortable owning indefinitely.
Our underwriting rests on three structural tests: durability of demand, integrity of the asset, and asymmetry of purchase.
1. Durabilty of Demand
Markets are selected for structural depth, and durable, year-round demand, not trend cycles.
At our target ADR, total demand must materially exceed the occupancy we require.
If achieving 25 nights per month requires us to capture a meaningful share of the market, we do not enter.
Velocity is a bonus. Durability is the baseline.
2. Asset Integrity
We acquire only assets we would own indefinitely.
Scarcity, location integrity, and design quality must endure across cycles.
If a property does not justify permanent ownership on its own merits, it does not qualify.
3. Asymmetry at Purchase
Replacement cost anchors downside. Scarcity drives upside.
We analyze stock-to-flow dynamics within each micro-market to understand how quickly new supply can dilute existing inventory.
Where development is constrained by geography, entitlement friction, or replacement cost, pricing power becomes structurally durable.
We seek assets that would be expensive to recreate and difficult to replicate, yet are priced against inferior comps.
The Praxis is our private distribution channel for curated market intelligence and opportunities.