Joint Venture Program
Structure and capital investment
NHS identifies hospitality properties with untapped potential, focusing on assets where value can be created through enhanced management and operational efficiency. For each joint venture, NHS invests between $50,000 and $250,000 into the property’s existing equity, taking a minority ownership position. The exact ownership split varies by deal and depends on the total equity structure, though NHS always participates as a minority partner.
Role of NHS
As part of the joint venture, NHS assumes full asset management and hotel management responsibilities. This includes driving revenue growth through higher ADR and occupancy, refining expense structures, and ensuring transparent reporting to partners. NHS covers all day-to-day and strategic oversight, positioning the property for long-term success.
Fees and alignment
NHS receives a 4% management fee — 3% allocated to hotel management and 1% for asset management — ensuring proper oversight while keeping incentives aligned. NHS’s primary value creation comes from improving the asset’s performance and positioning it for long-term ownership.
Buyout Option
A unique feature of the NHS joint venture structure is its built-in buyout option. At the start of each deal, an option price is established, allowing NHS the right to purchase the property outright within 2 to 5 years. This price remains fixed during the option period, providing clarity and security for both NHS and its partners. If the option is not exercised within that timeframe, the price is subject to adjustment.
benefits to investors
Investors and hotel owners both benefit from NHS’s joint venture structure, which creates alignment, shared risk, and long-term value. Investors continue to receive distributions from the property’s ongoing performance while benefiting from NHS’s proven ability to increase asset value. With NHS already committed as a future exit partner, investors gain certainty around disposition and confidence that management is motivated to maximize performance while planning for long-term ownership.
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At the same time, hotel owners are empowered by a model where NHS invests alongside them, shifting the focus from fee collection to driving asset growth. With equity participation and a purchase option in place, NHS approaches each property with the discipline and intensity of an owner from day one, applying revenue growth strategies, rigorous cost control, and operational excellence. The structure also provides owners with strategic flexibility through a 2-5 year purchase option that allows for liquidity, continuity, or the ability to test performance before selling. NHS’s national platform brings sophisticated systems, top-tier sales and revenue management, and strong lender relationships, all while tailoring execution to the unique dynamics of each local market. Unlike traditional long-term management contracts with no skin in the game, this joint venture is built on immediate alignment and shared incentives, ensuring that both investors and owners are driven by the same definition of success.