Introduction from Ohana’s Founder and CEO, G. Christopher Smith
Dear Stakeholders,
As we present Ohana’s third annual ESG Report, I am proud of the progress we’ve made with regard to sustainability and social responsibility over the past few years. This report showcases our commitment to integrating Environmental, Social, and Governance (ESG) principles into all aspects of our business, where feasible.
Over the past year, we have significantly advanced our ESG initiatives, investing extensively in capital projects that reduce and streamline energy and water consumption across key properties. Notably, our efforts in Los Cabos earned us the prestigious Gold LEED Certification for Existing Communities in 2024, highlighting our dedication to environmental stewardship.
Our commitment to fostering diverse and inclusive work environments remains central to our corporate philosophy. We believe that diversity enhances creativity, innovation, and organizational strength, and we continue to create spaces where every employee feels valued and empowered.
We also take pride in giving back to the communities that support us. Ohana’s key properties donate $1,000 per full-time employee to local charitable causes and social initiatives, reflecting our commitment to social responsibility.
Looking ahead, we are excited to extend our Responsibly Ohana policy to new properties like the Claremont Club & Spa, further enhancing our impact on ESG considerations throughout the investment lifecycle.
Thank you for your continued support as we strive to build a more sustainable and socially responsible future.
Onward,
G. Christopher Smith Chief Executive Officer
Ohana is a vertically integrated real estate investment firm.
Our team is comprised of experts in real estate operations, capital markets, development & construction, and brokerage. We put relationships at the center of everything we do, with a datadriven approach that allows us to identify risks and opportunities.
BY THE NUMBERS
$4.5B In total investments
3,285
Hotel keys / residential units currently owned and/or operated across 14 investments
48 Corporate employees
40+ Properties acquired, financed, operated, or developed
$2.7B+
Transacted by Ohana Realty across 5 residential projects
3,700+ Employees across property portfolio
All figures as of March 31, 2024
DEER VALLEY, UTAH
02 Responsibly Ohana
Each Ohana property is located in an exceptional community.
Our Responsibly Ohana policy outlines our commitment to enhancing these communities, including how we incorporate ESG considerations across our firm and the entire investment lifecycle, from acquisition due diligence to realization.
ESG PILLARS
Our ESG efforts are focused on four key impact areas.
Energy
Reduce overall carbon footprint by lowering energy consumption
Upgrade and optimize equipment / processes for efficient resource usage
Explore on-site renewable energy generation
Reduce water consumption across portfolio
Use reclaimed water for irrigation and landscaping
Pursue operational changes and efficiencies Water
Diversity
Require diverse candidate pools for positions where Ohana has control
Target a corporate workforce of >50% minority, female, and / or veteran
Seek to hire individuals with special needs when possible
Giving
Maintain annual charitable giving budgets for each property and at Ohana level
Focus charitable efforts on community-based causes such as youth development / education
Encourage and support volunteering and giving opportunities for Ohana employees
LOS CABOS, MEXICO
We continued our focus to reduce energy and water consumption across key properties in our portfolio in 2023.
LEED Certification at Twin Dolphin
2023 was a milestone year at Twin Dolphin, our master-planned community in Los Cabos, as the team finalized the process of becoming a LEED-certified community. LEED (Leadership in Energy and Environmental Design) is the world’s most widely recognized green building rating system, providing a framework for healthy, highly efficient, and cost-saving green buildings.
The Twin Dolphin team concluded their ongoing initiatives to achieve the certification, which included conducting an extensive feasibility analysis and rigorous project plans in accordance to Green Building Council timelines. The team was proud to earn Gold LEED certification in 2024, becoming the first community in Mexico to become LEED certified.*
$4,457,500
$4,257,207
BUDGET ACTUAL
4
Number of registered projects included in the LEED Certification of Existing Buildings at the Twin Dolphin community
2.1 million
Amount of energy produced by the solar panel grid for the community in kilowatt hours
509,000 m2
Total amount of dedicated open green space at Twin Dolphin as a part of LEED certification
LOS CABOS, MEXICO
2024 Initiatives
In collaboration with our on-property teams and third-party consultants, Ohana has identified and is investing in additional environmental cap-ex projects. For properties acquired later in 2023, Ohana is evaluating potential environmental initiatives for 2024.
Overall
$4,867,500
Total planned spending on water / energy projects in 2024
La Cantera Resort & Spa
$2,183,000
Complete FCU and thermostat replacement and HVAC control upgrade to improve energy efficiency
Waldorf Astoria Monarch Beach Resort & Club
$1,600,000
Replace chillers, cooling tower, and chilled water / condenser water pumps in central plant to ensure optimal energy efficiency and sustainable operations
Hyatt Lost Pines
$192,500
Building control system upgrade and hot water return system to optimize HVAC operations
Maravilla + Twin Dolphin Club
$527,000
Complete LEED certification, reduce single-use plastics, create flora and fauna booklet, coral preservation to reinforce commitments to environmental stewardship and promote biodiversity conservation
Claremont Club & Spa
$330,000
Complete parking light LED upgrade and roof select replacement to reduce energy consumption and carbon footprint
Hotel Commonwealth
$35,000
Complete generator maintenance upgrade and replace two water heating units to optimize efficiency and minimize energy waste
*Does not include non-hotel properties.
Supporting the communities in which we operate is core to our Diversity + Giving pillars, as is fostering diverse workforces at both the property and corporate level of our organization. 2023 HIGHLIGHTS
World Central Kitchen
The Twin Dolphin community donated significant charitable contributions to World Central Kitchen in 2023 to help support their efforts in providing meals to residents of Acapulco following the aftermath of Hurricane Otis.
$2,957,508
2023 charitable contribution total across Ohana portfolio (includes volunteer hours, in-kind donations, and cash donations)
$91,160
Amount donated by Ohana employees to support non-profit organizations*
43
Organizations supported through employee donations
*Includes Benevity match
At the majority of its properties, Ohana is budgeting to spend the equivalent of $1,000 per full-time employee to local charitable causes, non-profit organizations and other social initiatives, as well as making significant investment in local charitable organizations.
Overall
$3,269,000
Total planned social spend in 2024
Montage Los Cabos
$578,000
$1,000 charitable donations committed per 578 FTEs on property
Waldorf Astoria Monarch Beach Resort & Club
$531,000
$1,000 social spend committed per 531 FTEs on property
La Cantera
$492,000
$1,000 social spend committed per 492 FTEs on property
Hyatt Lost Pines
$445,000
$1,000 social spend committed per 445 FTEs on property
Montage Deer Valley
$421,000
$1,000 social spend committed per 421 FTEs on property
Maravilla + Twin Dolphin Club
$340,000
Donations to local charities and social causes in Los Cabos, MX
Claremont Club & Spa
$331,000
$1,000 social spend committed per 331 FTEs on property
Hotel Commonwealth
$71,000
$1,000 social spend committed per 71 FTEs on property
Hilton Brooklyn
$41,000
$1,000 social spend committed per 41 FTEs on property
The Tillary Hotel
$19,000
$1,000 social spend committed per 19 FTEs on property
05 Commitment to Accountability
Ohana’s ESG Committee helps ensure we live up to the high standards we have set for our company and our properties. The team, which meets quarterly, is responsible for the following:
Determining Ohana’s ESG priorities and focus areas at the beginning of each year
Working with the Asset Management team in setting annual propertylevel performance targets, tracking progress, and proactively addressing ESG risks and opportunities
Providing transparency to our stakeholders, including distribution of monthly performance tracking and annual reporting
PARK CITY, UTAH
Property-Level Engagement
In 2023, the Ohana team worked closely with our on-property teams to review key ESG performance metrics on a monthly basis as a part of our governance efforts. As part of the yearend budgeting process, the Ohana team also established ESG spending targets for 2024.
GOVERNANCE CorporateLevel Engagement
Ohana has established robust internal governance through the formation of specialized committees to help manage the organization as a whole. Made up of six distinct committees, this corporate governance
structure leverages our internal expertise to effectuate changes and growth for the organization, bringing together participants from different business verticals to ensure a diversity of perspectives.
DANA POINT, CALIFORNIA
Appendix
The Responsibly Ohana Policy
Responsible Investment Culture
• Maintain and strengthen Ohana’s responsible investment culture
• Ensure the Responsibly Ohana policy is available to all employees
• Encourage involvement in internal and external research to inform Ohana’s ESG practices
• Provide periodic ESG trainings and speaker series
• Disclose ESG performance versus pre-established targets, internally and with investors and key stakeholders
Investment Due Diligence
Hands-On Ownership
• Assess material ESG issues, risks, and opportunities related to acquisition targets
• Document ESG-related due diligence findings
• Reduce carbon footprint by lowering energy consumption through energy efficiency projects
• Reduce water consumption through operational changes and the use of technology
• Hire employees from a diverse candidate pool for property-level positions where Ohana retains approval rights
• Maintain annual charitable giving budgets directed toward youth development and education
• Review ESG progress and outstanding items with on-site property teams
CEDAR CREEK, TEXAS
Responsibly Ohana in Action
Adherence to our Responsibly Ohana policy will help ensure we make progress towards our goals.
Responsible Investment Culture Investment Due Diligence
The Responsibly Ohana policy is readily available to all Ohana employees
Employee involvement in research projects to inform ESG priorities is encouraged
Trainings and programs on ESG topics and developments
Transparency on ESG performance versus pre-established targets
Ohana deal teams are expected to follow a standardized ESG due diligence process tailored for each property
Ohana proactively seeks to identify ESG risk areas and improvement opportunities
Prioritized actions are documented and then recommended to the Investment Committee
Hands-On
Ownership
Establish property-level ESG goals across Ohana’s key impact areas
Review ESG progress and outstanding items on a monthly basis with on-site property teams
Focused on control-oriented equity investments where Ohana directly influences action
Elements of the policy may be applied to credit investments when feasible
HEALDSBURG, CALIFORNIA
Partnerships
Revitaliza Partnership
While our ESG goals and initiatives for 2024 and beyond are ambitious, it is important to reflect on our positive impact thus far.
Ohana has partnered with Revitaliza, a consulting firm in Mexico City specializing in LEED certification, decarbonization strategies and path to Net Zero.
Since the inception of our partnership in 2020, Revitaliza has provided extensive feasibility analysis, project planning in accordance to GBCI timelines, and support for ongoing deliverables, achieving LEED Certification at Twin Dolphin in 2024.
LEED (Leadership in Energy and Environmental Design) is the world’s most widely recognized green building rating system, providing a framework for healthy, highly efficient, and cost-saving green buildings.
Results: Twin Dolphin is the only LEED-certified existing community version 4.1 in Mexico.
Carbon Lighthouse
Ohana has partnered with Carbon Lighthouse, an energy-efficiency organization, to identify and implement energy-savings solutions at multiple properties. In addition, Ohana is a member of Carbon Lighthouse’s Advisory Board.
Results: Ohana has implemented 29 energy efficiency measures, with an additional 16 measures in progress. Collectively, these measures are projected to deliver 3,850 tons of annual CO2 savings.
Audubon Partnership
Twin Dolphin Club has worked with Audubon International to achieve recognition as an environmentally sensitive property, focused on protecting the natural resources of Baja California Sur.
• Twin Dolphin Club has been designated as a Certified Bronze Audubon International Signature Sanctuary.
• This prestigious certification verifies sustainable design, construction, and long-term management of golf courses, communities, and resorts.
Results: Twin Dolphin Club is the only golf course in Mexico to achieve designation as a Certified Bronze Audubon International Signature Sanctuary.
LOS CABOS, MEXICO
LOS CABOS, MEXICO
Our Portfolio
From urban markets to resort destinations, our portfolio spans across North America.
Hotel Centro + The Knoll Hotel S ONOMA + NAPA VALLEY, CA
Claremont Club & Spa BERKELEY, CA
Hilton Brooklyn BROOKLYN, NY
Hyatt Regency Lost Pines CEDAR CREEK, TX
Hotel Commonwealth BOSTON, MA
La Cantera Resort SAN ANTONIO, TX
Montage Deer Valley PARK CITY, UT
Maravilla + Twin Dolphin Club LOS CABOS, MX
Montage Los Cabos LOS CABOS, MX
San Vicente Platform WEST HOLLYWOOD, CA
The Tillary Hotel + 60 Duffield BROOKLYN, NY
Waldorf Astoria Monarch Beach Resort & Club DANA POINT, CA
The data and information in this report (“Report”), which has been prepared by Ohana Real Estate Investors (“Ohana”), are presented for informational purposes only. This Report shall not constitute an offer to sell or the solicitation of any offer to buy any interest, security, or investment product. The information in this Report is only as current as the date indicated and may be superseded by subsequent market events or for other reasons, and Ohana assumes no obligation to update the information herein. Nothing contained herein constitutes investment, legal, tax, or other advice nor is it to be relied on in making an investment or other decision. This Report should not be viewed as a current or past recommendation or a solicitation of an offer to buy or sell any securities or to adopt any investment strategy.
Certain of the information contained in this Report contains “forward-looking statements” or information. Any statements that are not statements of historical facts may be deemed to be forward-looking statements. When used in this Report, the words “may,” “could,” “anticipate,” “target,” “plan,” “continue,” “goal,” “commit,” “achieve,” “project,” “intend,” “estimate,” “believe,” “expect” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such words. Furthermore, any projections or other estimates in this Report, including estimates of returns or performance, are “forward-looking statements” and are based upon certain assumptions that may change. Forward-looking statements are subject to a number of certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or anticipated results. The forward-looking statements speak only as of the date of this Report and undue reliance should not be placed on these statements. Investors should read this ESG Report in conjunction with investment fund quarterly reports, financial statements and other disclosures regarding the valuations and performance of the specific investments discussed herein. Ohana disclaims any obligation to update any forward-looking statements as a result of new information, future events or otherwise. In addition, unless the context otherwise requires, the words “include,” “includes,” “including,” and other words of similar import are meant to be illustrative rather than restrictive. Statistics and metrics relating to ESG factors or sustainability risks or impacts are estimates and may be based on assumptions or developing standards.
Nothing contained herein is intended to predict the performance of any investment. There can be no assurance that actual outcomes will match the assumptions or that actual returns will match any expected returns. Goals are aspirational and not guarantees or promises that all goals will be met. Certain information contained herein relating to any goals, targets, intentions, outcomes or expectations is subject to change. The ESG or impact goals, targets, commitments, incentives, initiatives or outcomes contained herein are purely voluntary and are not binding on investment decisions and/or Ohana’s management or stewardship of investments. Ohana may in the future establish certain ESG or impact goals, targets, commitments, incentives, initiatives or outcomes.
Similarly, there can be no assurance that Ohana’s ESG policies and procedures as described in this Report, including policies and procedures related to responsible investment or the application of ESG-related criteria or reviews to the investment process, will continue to be applied in the manner described; such policies and procedures could change, even materially, or may not be applied to a particular investment. Ohana is permitted to determine in its discretion that it is not feasible or practical to implement or complete certain of its ESG initiatives, policies, and procedures based on cost, timing, or other considerations. In addition, the act of selecting and evaluating material ESG factors is subjective by nature, and there is no guarantee that the criteria utilized or judgment exercised by Ohana will reflect the beliefs or values, internal policies or preferred practices of investors, other asset managers or with market trends. In this report, we are not using such terms “material” or as they are used under the securities or other laws of the U.S. or any other jurisdiction, or as they are used in the context of financial statements and financial reporting.
Statements about ESG initiatives or practices related to portfolio investments do not apply in every instance and depend on factors including, but not limited to, the relevance or implementation status of an ESG initiative to or within the portfolio investment; the nature and/or extent of investment in, ownership of or, control or influence exercised by Ohana with respect to the portfolio investment; and other factors as determined by investment teams, corporate groups, asset management teams, portfolio operations teams, companies, investments, and/or businesses on a case-by-case basis. ESG factors, sustainability risks or impacts are only some of the many factors Ohana considers in making an investment, and there is no guarantee that Ohana will make investments in companies that create positive ESG impact or that consideration of ESG factors will enhance long- term value and financial returns for limited partners. To the extent Ohana engages with portfolio investments on ESG-related practices and potential enhancements thereto, there is no guarantee that such engagements will improve the financial or ESG performance of the investment.
References to portfolio investments are intended to illustrate the application of Ohana’s investment process only and should not be viewed as a recommendation of any particular investment or security. The information provided about these portfolio investments is intended to be illustrative, and is not intended to be used as an indication of the current or future performance of Ohana’s portfolio investments. The investments described in the selected case studies were not made by any single fund or other product and do not represent all of the investments purchased or sold by any fund or other product. Descriptions of any ESG-related achievements or improved practices or outcomes of Ohana’s portfolio investments are not necessarily intended to indicate that Ohana has substantially contributed to any such achievements, practices or outcomes. For instance, Ohana’s ESG engagement may have been one of many factors, including other factors such as engagement by portfolio investment management and other key third parties and advisors, that may have contributed to the success described in each of the selected case studies.
Certain information contained herein has been obtained from third parties, and in certain cases have not been updated through the date hereof. While these third party sources are believed to be reliable, Ohana makes no representation or warranty, express or implied, with respect to the accuracy, fairness, reasonableness or completeness of any of the information contained herein, and expressly disclaims any responsibility or liability therefor. Actual results may differ materially from any forward-looking statements.
The receipt of any awards or certifications by Ohana or its portfolio investments described herein is no assurance that Ohana’s investment objectives have been achieved or successful. Further, such awards or certifications are not, and should not be deemed to be, a recommendation or evaluation of Ohana’s investment management business.