Our Approach
Our proven approach to real estate investing results in speed, low credit risk, and sustainable, outsized returns. Below is a summary of our investment process and the main criteria we target in our investments.
Rigorous Diligence
- Durability: Leveraging 40 years of lodging and economic data, we stress-test the durability of our investments under economic shocks and structural dislocation.
- Growth: We target markets with underlying fundamentals we believe will generate consistent and pronounced demand growth over the next 5 to 15 years.
- Optionality: Our targets must provide optionality for either value-add capital improvement or profitable conversion to an alternative use.
Gemini’s Commitment
- Gemini launched initially with internal capital and we only approve projects that we would be willing to fund entirely with our own capital.
- Gemini always contributes significant capital into each project, creating alignment with our capital partners and demonstrating a commitment to our investment thesis.
Prudent Capitalization
- Applying a Sharpe ratio framework, we will only increase leverage if we believe the return premium over an appropriate risk-free benchmark will increase more, on a relative basis, than volatility.
- All assets are funded with long-term debt to match our targeted hold period. We stress-test debt service coverage metrics on all acquisitions.
- We refinance our loans at least three years prior to maturity to mitigate solvency risk in the event of an extended market contraction.
Operational Execution
- Gemini’s in-house management has two decades of diverse operational experience across all service level categories.
- When appropriate, the firm will engage top-tier external management companies that have asset-specific knowledge, geographic expertise, or operational economies of scale.
- Gemini manages every aspect of capital projects, including entitlement, design, permitting, and construction. Our line of sight always focuses on clear and measurable goals.
