Many cities & counties are restricting the use of short-term rentals in residential areas. We identify underperforming commercial hotel properties in vacation-friendly States, renovate & scale the properties, and maximize revenue by achieving SuperHost status on short-term rental sites within 45 days of acquisition.
Our target is to raise $10 million to complete a 'Fund' of 30 hotels.
The Offering: 506(c) Federally Registered Securities Offering;
For the intended purpose of increasing Annual Revenues to $10 million by end of 2026
• $6 million Operating Income
• $4 million Gross Profits from Property Appreciation
There are over 50,000 hotels in the USA, many of which were last acquired in the 1980's and '90's under the EB5 Immigrant Visa Program. These were once efficient family run businesses - they are now outdated, overstaffed, and underperforming REVpar. The hotels are owned outright and technology & AI have not yet been embraced making them prime candidates for forced appreciation.
We target properties south of the I-40 'frost-line'. Most are 2-story walk-ups situated on 2-4 acres. Our properties are located off of major highways and near major populations and college campuses. Through building and technological improvements, we bring the hotels from a C-grade to a B-grade, increasing room rates and force an increase in shareholder equity value.
We focus on hotel assets suffering from low monthly per room revenues - known as REVpar - we then implement our proprietary revenue optimization strategy capitalizing on short-term rental technology. Coupling our revenue optimization techniques with the building improvements, on average we are able to improve the revenues being generated per room by 300% per month.
There are generally 4 types of guests that enjoy our properties. Those with a need for value-focused longer-term accommodations; the business traveler with a need for short or long term accommodations; the value based traveler on a short term basis; and occasionally FEMA disaster victims as our facilities are certified to assist in the event a need arises..
Acquisition cost and financing method are key to the equation. We use our scale and negotiating strength to acquire assets for a specifically predetermined cost per door, and often with financing terms that are under the prevailing market interest rate. This approach sets us up for success in creating a wide profit margin and long-term shareholder equity.
The acquisition cost of each property has a built-in margin for 'per door' renovations that creates shareholder equity through building upgrades and rehabilitation. We also focus on developing ways to create additional revenue streams, such as repurposing unused land for RV parking, campsites, and other income generating opportunities.
The use of AirBnB and online booking technology means that we have a personal profile, reservation, and payment all prior to arrival. Any accommodation changes are handled online. The secret sauce is in achieving SuperHost status for each of our properties within 45 days of acquisition!!
