LEAVE US YOUR MESSAGE
contact us

Hi! Please leave us your message or call us at 510-858-1921

Thank you! Your submission has been received!

Oops! Something went wrong while submitting the form

13
May

📊 Bay Street Hospitality Index: Strategy Architecture

Last Updated
I
May 13, 2025

The Institutional Rulebook for Public and Private Hospitality Investing

Sourcing & Brand/Operator Selection

Quantamental Tools: Platform Synergy Score, Operational Leverage Flag

LP Recommendation: Prioritize brand/operator deals with upside alignment, downside protection.

Market Studies, Feasibility & Valuation

Quantamental Tools: IRR Sensitivity Band, Liquidity Stress Delta (LSD)

LP Recommendation: Demand stress-tested revenue assumptions.

Deal Structuring & Financing

Quantamental Tools: Bay Adjusted Sharpe (BAS), FX Shock Modeling

LP Recommendation: Only support deals that survive multi-scenario stress paths.

Technical Oversight

Quantamental Tools: IRR Compression Index, CapEx Volatility Metrics

LP Recommendation: Institutional oversight mandatory for complex conversions.

Asset Management & Post-Close Monitoring

Quantamental Tools: Live Bay Score Drift, EBITDA Margin Tracking

LP Recommendation: Insist on real-time monitoring of underwriting drift.

Transaction Advisory & Exit Planning

Quantamental Tools: Jensen’s Alpha, Exit Liquidity Scoring

LP Recommendation: Full-cycle exit comparables must be data-supported.

Portfolio Construction with BSHI

Optimizer Inputs: Bay Score, AHA, BAS, LSD.

Outputs: Risk-budgeted portfolios, region-specific allocation files, dynamic rebalance triggers.

Component Index Methodology

• STR HOST/Trend: Total-Room-Inventory normalization

• CoStar Hotel Analytics: Submarket-tagged forecasts

• Cambridge Global PE Index: Direct private equity data

• NCREIF ODCE: Time-weighted real estate returns

• MSCI GPFI: Core+ property performance tracking

• FTSE Nareit Lodging/Resorts: Public REIT screening

• S&P Global Hotels & Resorts: Global equities coverage

• Dynamic Illiquidity Premium: 1–7.5% range modeled by hold, FX, and repatriation friction.

Conclusion

The BSHI is not simply a benchmark. It is Bay Street Hospitality’s institutional-grade rulebook—unifying fragmented data, embedding risk calibration, and making public/private hospitality investing transparent, disciplined, and scalable.

Copyright Notice and Legal Disclaimer

The materials provided by Bay Street Hospitality Fund I GP LLC (“Bay Street Hospitality”), including Bay Score, AHA, BAS, BMRI, and the BSHI system, are for informational purposes only and do not constitute investment advice. Unauthorized reproduction is prohibited. © 2025 Bay Street Hospitality Fund I GP LLC.

...

Latest posts
31
Oct
Japan-Fuyo Lease Exit: ¥10.17B Nishi-Shinjuku Deal Tests Hotel REIT Refinancing Thesis
October 31, 2025

Hotel investment surged 54% YoY in 2024, yet 84% of Asia-Pacific capital concentrated in five markets, while the Sotherly Hotels privatization at 152.7% premium and 9.3x EBITDA demonstrates value unlocking potential versus 6x public REIT multiples As of October 2025,...

Continue Reading
31
Oct
U.S. Hotel M&A Fragmentation: 30% Portfolio Volume Drop to €3.3B Signals Buyer Reset in H1 2025
October 31, 2025

Versus distressed REIT valuations A $48 billion CMBS maturity wave through 2026 forces borrowers to refinance 3-4.5% debt at 6.25-7% rates, compressing DSCR ratios and creating distressed secondary asset opportunities at 6-7% cap rates offering 150-200 basis point premiums over...

Continue Reading
30
Oct
South Korean Hotel Portfolio Exits: ₩875B Volume Signals 385bps Yield Reset in Q4 2025
October 30, 2025

Growth Hotel REIT privatizations commanded 152.7% premiums while public vehicles trade at 6x forward FFO, the most discounted property type in real estate, creating tactical entry points for allocators who can navigate vehicle arbitrage mechanics through 2026 South Korea's hotel...

Continue Reading

Unlock the Playbook

Download the Quantamental Approach to Investor Protection, Alignment & Alpha Creation Playbook
Thank you!
Oops! Something went wrong while submitting the form.
Are you an allocator or reporter exploring deal structuring in hospitality?
Request a 30-minute strategy briefing
Get in touch