Our primary objective is to generate attractive returns for our shareholders through investing in hotel properties at prices that provide strong returns on invested capital, paying dividends and generating long-term value appreciation. We believe we can create long-term value by pursuing the following strategies:
Aggressive asset management: Although as a REIT we cannot operate our hotels, we will proactively manage our third-party hotel managers in seeking to maximize hotel operating performance. Our asset management activities will seek to ensure that our third-party hotel managers effectively utilize franchise brands’ marketing programs, develop effective sales management policies and plans, operate properties efficiently, control costs, and develop operational initiatives for our hotels that increase guest satisfaction. As part of our asset management activities, we will regularly review opportunities to reinvest in our hotels to maintain quality, increase long-term value and generate attractive returns on invested capital.
Selecting the right hotel management company: Our goal is to maximize the performance of our hotels through great collaboration with our operators. We will be flexible in our selection of hotel management companies because that increases the universe of potential acquisition opportunities. Having said that, we believe Island Hospitality is one of the best hotel operators of select service and extended-stay hotels in the industry and given the many markets where Island operates hotels, we use their expertise to help us underwrite and diligence potential hotel acquisitions. Island Hospitality currently manages all but two of our hotels and manages all fifty-one hotels in our Innkeepers joint venture. Concord Hospitality manages the remaining two hotels.