11% Preferred Return + 30% Ownership in a Hotel in Wisconsin
This investment opportunity below is open only to ACCREDITED investors only. If you're an ACCREDITED investor and want to get the specific details & business plan (not disclosed below) send us an email at [email protected]
Investment Highlights
- Be a Preferred Investor in a 200+ key hotel in Wisconsin
- Receive 11% interest on investment capital + 30% equity
- Total Investment Timeline: 5 years
- Total Equity Required: $6.8 MILLION
- Minimum Investment Required: $100,000
- Capital Raised To Date: $4.8 MILLION
- Expected Closing Date: July 1, 2019
What is The Opportunity:
Reposition existing upscale, institutional-quality hotel (affiliated with a premium hotel brand) in a city in Milwaukee-Waukesha-West Allis MSA (Wisconsin). This is an off-market acquisition by the sponsor. The repositioning plan includes increasing the occupancy index by 9% through the sponsor's national sales support and in-house revenue management. This will increase the revenue from $8.9 MILLION to $10.8 MILLION in the next 3 years. We will also reduce operating expenses and the result of higher revenue and lower expenses is an increase in NOI from $2.2 MILLION to over $3.3 MILLION over the same time period.
Where is the Opportunity:
The Milwaukee-Waukesha-West Allis MSA has achieved an impressive 3.6% unemployment rate in 2018 with an average income of $80,000/year, which is growing at a compounded rate of 2.6% per year since 2006. The employment base is diversified with 19% of employment in the virtually recession-resistant health care industry.
Who is the Sponsor of this Opportunity:
- 238 Ground Up Hotels
- 6,081 keys under management, 48 hotels, representing $1.5 billion in real estate value
- 67 hotel renovation projects
- Over 1.7k employees
Why Invest in the Opportunity?
- Low risk since property is already performing and producing income, hence, 11% preferred return is sustainable
- Low risk since Sponsor has experience in repositioning similar properties
- Good returns - estimated investor IRR between 12-18% per year
To Invest, please email us at [email protected]. You will receive a phone call from one of our Investor Relations personnel once we receive your email.