Elise Capital Quarterly Journal: Q3 2025
A Milestone Quarter!
Q3 was an exciting time for our team as we are proud to share a defining moment for Elise Capital alongside a look into how we evaluate opportunities and continue building our influence across the hospitality investment landscape.
Assessing Deal Risk
One of the questions we are often asked is: “How do you assess a deal?”
At Elise Capital, our approach begins with a disciplined and rigorous due diligence process analyzing every angle to ensure we’re not just chasing returns, but protecting investor capital. Because hotels are a riskier investment class, we challenge every assumption and evaluate both the positive economics and the potential downside.
The Three Keys
Market Stability
How fragile is the market should a change in demand or supply occur? We study the local and regional economic environment to ensure our hotels are positioned to perform through cycles.
Building Condition
How does the age and condition of the asset impact not only current performance, but also expectations for future buyers? We evaluate physical plant, deferred maintenance, and renovation timelines to forecast capital needs accurately.
History
History is our greatest indicator for opportunity. We dive deep into the story behind each property—who the prior owners and operators were, and whether they performed to potential. Underperforming assets often reveal hidden upside when paired with strong management and intentional strategy.
Milestone Exit
It is with great pride that we share the successful disposition of our very first acquisition - the Hampton Inn by Hilton Douglas, GA, a 61-key hotel that served as the foundation of Elise Capital’s investment platform.
Transaction Closed: August 13, 2025
Significance: In the beginning stages of Elise Capital, a frequent roadblock we met was doubt—with many asking us to prove our concept before we even began. This successful exit, which exceeded our original projected returns ahead of schedule, not only proves our concept but also demonstrates that making a conscious impact in our communities does not require sacrificing return on investment
Projected Returns (at acquisition):
5-Year Hold
2.23x Equity Multiple
20.5% Internal Rate of Return (IRR)
15.5% Average Cash-on-Cash Return
Actualized Returns (at disposition):
4-Year Hold
2.34x Equity Multiple
25.4% Internal Rate of Return (IRR)
21.1% Average Cash-on-Cash Return
These results underscore Elise Capital’s commitment to disciplined acquisitions, active asset management, and meaningful investor outcomes. Beyond the numbers, this first exit validates our inclusive model for hotel ownership and strengthens our capacity to reinvest in the next wave of opportunities.
Looking Ahead
Q3 marked a pivotal milestone in Elise Capital’s journey—our first full exit, validation of our investment thesis, and continued industry leadership. As we enter Q4, our focus remains on disciplined growth, operational excellence, and delivering meaningful returns for our partners.
Elise Capital – Empowering Growth, Inspiring Change.
Thank You
Elise Capital is a firm powered by our community. Thank you for your continued support in our journey. We look forward to continuing our quarterly updates with you. More to come!
Hospitably,
Kendra Plummer
