When it comes to this kind of property, hotel brands like Ace are usually operators, not owners. VC is a thing in hospitality real estate too, and this is what

When it comes to this kind of property, hotel brands like Ace are usually operators, not owners. VC is a thing in hospitality real estate too, and this is what a lot of real estate VC funds do. They'll buy a distressed property or location with potential and flip it into a hotel, and then pick an operator. If the property is successful, they'll eventually get an exit when they sell it to a larger, lower-risk cash-flow oriented real estate fund and pocket a profit. As for "boutique" urban hotel brands, I think it's a fad lately, even within the major hospitality groups - the Hilton Curio and Marriott Autograph sub-brands specialize in these kinds of things, and Westin / W used to operate a lot of these kinds of properties too.