Real Experiences
in Real Estate
Curators of Kind Hotels
Real Experiences
in Real Estate
Real Experiences
in Real Estate
Real Experiences
in Real Estate
HBU Canna Co. is an investor and developer of cannabis lifestyle hotels. Our investment criteria are centered around hotel real estate with a cannabis lifestyle component. We strongly believe that a hotel with an active cannabis program will drive departmental revenue for the hotel and significantly improve a overall RevPAR penetration. We also expect that a well-managed cannabis lifestyle hotel will attract institutional investment and realize a lower cap rate on exit, not dissimilar to full-service hotels.
HBU Canna Co. is actively seeking hotel assets greater than 100 rooms in the Northeast markets with legal recreational cannabis.
The concept of "Cannabis Friendly" hotels has been around for a long time, primarily focused around on-premises use only. HBU Canna Co.’s strategy integrates cannabis as a departmental profit center of the hotel and addresses the operational constraints imposed by the regulations (regs).
So why 2023? Several reasons... after many years of growth for the cannabis sector, we are now entering the perfect storm of events driven by recreational legalization and latent demand for cannabis. Licenses are rolling out across several northeast states, providing availability of legal cannabis to 50 million people and over a 100 million visitors per year.
When we conceived the idea for a hybrid-use cannabis hotel, we wanted it to appeal to institutional investors across the real estate, hospitality and cannabis sectors. We believe a well-managed hybrid-use hotel will provide higher returns and lower risk for the investor. There are four criteria to achieving the highest and best use. The overall development must meet this criteria.
The hospitality business is considered high risk. The cannabis business is also high risk. Real Estate is a relatively safe investment. Individually, each business model can provide ample returns based to investor's requirements. We believe that the combination of all three subcomponents will amplify the returns while lowering and mitigating risk when compared to hotel investments without a cannabis component. Each subcomponent compliments the other and provides mutual benefits.
This begs the questions... Where and how do we find, acquire and entitle a hotel to achieve these maximum returns. HBU Canna Co. has created a business model that navigates the barriers to entry and develops thoughtful guest focused strategies on operations. Following acquisition and development, we turn our focus on operating the hotel and implementing an effective and customized cannabis strategy. As with most real estate, the disposition strategy becomes as important as the acquisition, development and operation.
Tom Dolan’s career in the hospitality and real estate industries started in 1992, when he began as a bartender in his hometown of Pittsford, New York. After about a year in the position, he took to the road, moving to Sanibel Island, Florida and then to Hilton Head Island, South Carolina, bartending and managing restaurants over the next three years.
In 1996, Tom left for Sedona, Arizona, continuing work as a bartender while enrolled at Northern Arizona University, where he graduated with a BS in Hotel and Restaurant Management. Tom then moved to Amelia Island, Florida, while managing Matthew’s Restaurant, a fine dining establishment in Jacksonville, FL.
In 2000, Tom returned to New York and began an 18-year career with HVS, starting as a consulting and valuation associate before focusing on hotel development and tax advisory. Tom opened the HVS Boston office in 2005, and in 2010 he became a Managing Partner for HVS after founding the firm’s Tax Advisory division. In 2018, Tom’s entrepreneurial spirit drove him to create DD|HA (Due Diligence Hotel Advisors). Visit us at https://ddha.com/.
Over his 25-year career Tom has advised on over $1-billion in real estate assets. He is a licensed real estate broker and an Adjunct Professor with Boston University’s School of Hospitality Administration.
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