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Michael Ealy
  • Developer
  • Cincinnati, OH
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11% Preferred Return + 30% Ownership in a Hotel in Wisconsin

Michael Ealy
  • Developer
  • Cincinnati, OH
Posted May 14 2019, 09:07

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.

Offering