Bridlie will invest the funds on behalf of the private equityfirm, pursuing acquisitions of upscale, full-service and selectedpremium-branded hotels and resorts in major metropolitan and urbanmarkets throughout the United States. Deals will range from $14million to $75 million.

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Bridlie declined to name its capital partner. "One of thenon-negotiable issues we faced when arranging this joint venturewas to invest their capital while ensuring the group remainedanonymous," says Shelley Rapier, vice president of sales andmarketing for Bridlie Hospitality Management. "This particulargroup does not wish to be pursued by other organizations who arealso seeking JV funding at this time, so our agreement with themincludes a non-disclosure of their identity on a public level."

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Bridlie, which provides full management oversight services forCarefree Resort & Conference Center in Carefree, Ariz., willtarget its investment capital on distressed, neglected assets, butwill also consider assets that are distressed because of debtissues.

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"We focus our energy and talent primarily on identifying assetsin urban markets which have been neglected and suffered financialshortfalls due to product and quality issues due to lack ofcapital," Rapier says. "We have also looked at assets that wereoverleveraged to begin with or have suffered an unfavorable changein loan to value ratios primarily as a result of the downturn inthe last few years as a result of the economic conditions on anational level."

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Rapier tells GlobeSt. that Bridlie will make the majority of itsacquisitions on an all-cash basis. "One advantage we feel we willhave in today's market is cash and the ability to close atransaction in a short time frame," she says. "However we also lookat leveraging certain assets."

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Rapier adds that in past transactions the company has limitedits leverage to 65 percent loan-to-value. It also becomes a JVpartner in each transaction using a portion of Bridlie's funds forthe acquisition and the balance coming from the JV fund.

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Bridlie is primarily interested in one-off transactions. "We areseeking individual assets which require unprecedented turnaround inorder to be successful, and unfortunately, large or even smallportfolios often include assets we would not be interested inacquiring unless we were confident that a portfolio acquisitionwould allow an immediate spin-off of those assets we were notconfident in providing dramatic ROI results in a very short periodof time," Rapier explains.

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