Drill Capital LLC, an investment management firm focused on investing in the energy sector in North America, inked an agreement to build a new hotel at the center of the Utica Shale formation in Eastern Ohio to take advantage on the increasing demand for the lodging and accommodations in the region.
Drill Capital’s hotel plans
According to the investment management firm, the three-story hotel will have 83 rooms and it will operate under one of the brands of the Wyndham Hotel Group. The new hotel is expected to open in the second quarter next year.
In a statement, Farid Guindo, founder and managing partner of Drill Capital said, “This is an exciting time for our firm, as we have completed our initial start-up phase and have been successful in attracting capital to begin executing on multiple projects in our pipeline. We have assembled a team of seasoned real estate professionals to help leverage our comprehensive experience and research capabilities in the energy space, which is our primary area of focus.”
Opportunistic public and private investments
Guindo is a former energy analyst at Ospraie Management. According to him, Drill Capital is focused on opportunistic public and private investments connected to the growth of the energy sector in North America and its extensive understanding of all aspects of energy economics. He added that Drill Capital will be able to provide the best risk-adjusted returns to its clients based on its in-depth focus and knowledge about the energy sector in the region.
“Our emphasis on primary research and on-the-ground due diligence allows us to anticipate production and activity spikes in key domestic shale formations, and right now the Utica Shale in Ohio is set to exceed other plays at similar stages of their respective development life cycles,” said Guindo.
Furthermore, he expects Drill Capital’s bottom-up approach will continue to help in its quest in achieving attractive opportunities with remarkable growth in unconventional energy across the region.
Ohio is the hot spot in the Utica Shale formation that spans across several U.S. states including Kentucky, Maryland, New York, Pennsylvania, Tennessee, Virginia, West Virginia, and some areas of Canada. Many analysts in the energy sector are comparing the Utica Shale formation to the highly successful Eagle Ford Shale formation in Texas.