Request for Boutique Hotel Syndication Deal Review

Syndications & Passive Real Estate Investing
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Request for Boutique Hotel Syndication Deal Review

Nancy Eyzaguirre
Member since 2024 · 9 posts · 7 votes

Has anyone done boutique hotel syndication? I'm considering an investment as a limited partner in a boutique hotel syndication in California. I'd like to have a professional review of the deal before committing. Specifically - PP, Operating Agreement, underwriting/ financial model, fee structure and distribution waterfall, and projected returns (IRR, cash-on-cash, exit assumptions). 

Any recommendations?



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  • Evan Polaski
    Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
    6mo

    I have never invested in a boutique hotel, but would be happy to take a look at the materials in a more general way to give some insights and questions that I would ask any sponsor, based on what I am seeing.

    I am assuming you have already vetted the sponsor that is running this deal, and done some diligence on understanding their ability to actually execute the business plan.  And, I am guessing you have done some searches on the area the hotel is going, to confirm there is actual tourist demand.

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    • Nancy Eyzaguirre
      OP
      Member since 2024 · 9 posts · 7 votes
      6mo
      Quote from @Evan Polaski:

      I have never invested in a boutique hotel, but would be happy to take a look at the materials in a more general way to give some insights and questions that I would ask any sponsor, based on what I am seeing.

      I am assuming you have already vetted the sponsor that is running this deal, and done some diligence on understanding their ability to actually execute the business plan.  And, I am guessing you have done some searches on the area the hotel is going, to confirm there is actual tourist demand.


       Really appreciate it, Evan. I'll send the materials over- would love your thoughts on anything that stands out or doesn't quite add up. 

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  • JJ Lunsford
    Lender · Member since 2022 · 61 posts · 12 votes
    6mo

    Nancy, one note worth considering... if all the major volatility right now (AI, oil, etc.) remains impactful, mid tier hotels get crushed. I'd personally only approach the bar bells of hospitality where you know that whoever remains super rich will still vacation there (highest end), or you are the last affordable vacation option for all the squeezed folks. Just one person's thesis but figured I'd share, looks to me like middle class and middle tier options get squeezed the most here.

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  • Brett Deas
    CO · Member since 2022 · 588 posts · 426 votes
    5mo

    Hey Nancy, I have put together a few small hospitality deals a few years ago so if you want someone to talk to feel free to message me. 

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    5mo
    Quote from @Nancy Eyzaguirre:

    Has anyone done boutique hotel syndication? I'm considering an investment as a limited partner in a boutique hotel syndication in California. I'd like to have a professional review of the deal before committing. Specifically - PP, Operating Agreement, underwriting/ financial model, fee structure and distribution waterfall, and projected returns (IRR, cash-on-cash, exit assumptions). 

    Any recommendations?




     I know someone on linkedin who runs GP-LP connect will review a PPM etc. I would recommend if you have some decent money behind you to find a RIA who invests in alternative investments to also work with them and get their opinion.

    7e investments53 Reviews
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