Caliber Hospitality Development Launches to Target Distressed Hotel Investments and Extended Stay Developments
SCOTTSDALE, Ariz., (GLOBE NEWSWIRE) – Caliber (NASDAQ: CWD), a prominent real estate investor, developer, and manager, has announced the launch of Caliber Hospitality Development, LLC (CHD), a strategic joint venture with GIA Hospitality, LLC (GIA). This new platform will focus on capitalizing on distressed hotel investments and the development of extended stay hotels in high-demand markets across the United States.
The venture kicks off with a $2 million initial investment from GIA and will leverage Caliber’s comprehensive real estate services, which include development, construction, finance, and asset management. Despite operating independently, CHD will operate under the umbrella of the Caliber Hospitality brand.
“This joint venture was created to pursue one of the most attractive opportunities in the current real estate cycle, acquiring underperforming hospitality assets at discounted prices and strategically developing in segments with strong demand,” said Chris Loeffler, CEO of Caliber. “By having CHD operate in this way, we are positioned to move quickly on opportunities and maximize returns for our investors.”
Investment Strategy Focused on Distressed Assets and Extended Stay Hotels
CHD’s investment strategy revolves around two key areas:
- Distressed Hotel Acquisitions
CHD will target underperforming or mismanaged hotel properties, acquiring them at significant discounts compared to replacement costs. The goal is to reposition these assets, improve their operational performance, and unlock long-term value for investors. - Ground-Up Extended Stay Development
CHD will also focus on building extended stay hotels in markets with favorable supply-demand dynamics. One of the first moves for the venture is the recently announced development of two Hyatt Studios properties in Scottsdale, Arizona, and Georgetown, Texas.
The combination of acquiring distressed assets and selectively developing new extended stay properties is designed to position CHD at the forefront of today’s hospitality market recovery and growth.
Leadership and Vision
CHD is led by Izhak Ben Shabat, a seasoned entrepreneur with a proven global track record in scaling successful businesses across the consumer and real estate sectors. Under his leadership, the joint venture is poised to take advantage of emerging opportunities in a rapidly evolving hospitality market.
“This partnership is founded on speed, strategic insight, and long-term alignment,” said Izhak Ben Shabat, Managing Partner of both GIA and CHD. “We’re excited to work alongside Caliber to identify and execute high-quality hospitality investments across the U.S. Our team is already working on four pipeline projects, with many more to come.”
The focus on speed and strategic execution is integral to CHD’s ability to take advantage of the current market conditions and rapidly scale operations in both the distressed asset space and the growing extended stay sector.
Partnerships and Future Growth
As part of its mission, CHD is actively pursuing relationships with key stakeholders in the hospitality industry, including hotel owners, brokers, developers, banks, financial institutions, and receivers who may have distressed hotel assets or premium extended stay development opportunities.
Furthermore, CHD is inviting institutional and accredited investors to participate in investment opportunities alongside the joint venture. This focus on strong partnerships and collaborations will allow CHD to unlock value across its projects and build a broad portfolio of high-performing hospitality assets.
In addition to acquiring and developing properties, CHD will explore strategic investments and innovations that can reduce construction costs and enhance execution efficiency, ensuring that their developments remain competitive and profitable.
Outlook for the Future
The launch of Caliber Hospitality Development comes at an opportune time for the hospitality industry, which is showing signs of recovery as travel demand rebounds and market conditions improve. With a focus on distressed asset acquisition and targeted development in high-demand sectors, CHD is set to become a major player in the hospitality investment space.
As the real estate cycle continues to evolve, CHD is positioned to capitalize on both short-term opportunities and long-term value creation, providing its investors with solid returns while driving the recovery and growth of hospitality assets across the nation.
About Caliber
Caliber is a real estate investment, development, and management firm focused on creating value through opportunistic investments and projects in key real estate sectors, including hospitality. With a proven track record of success, Caliber brings comprehensive expertise to every project, driving strong returns for its investors and partners.
About GIA Hospitality
GIA Hospitality is a leading hospitality investment firm specializing in the development, acquisition, and management of high-performing hotel assets. GIA brings a wealth of industry experience and strategic insight to every venture, with a focus on creating long-term value for its investors.
