24% Cash On Cash (31% IRR) on 511 Key Limited Service Hotel Portfolio

March 15, 2017

A highly experienced hospitality real estate firm who is seeking a JV partner for the acquisition of a North & South Carolina franchised 5-property limited service hotel portfolio (“Properties”). The total capitalization is approximately $55 million and the debt and equity stack is outlined below. As indicated, the opportunity is for you to provide $7.5 million of equity or any increment thereof and pursuant to the in-place net cash flow, you will earn a 23% current cash on cash return.

The proposed capital stack is as follows and all of the capital is hard circled.

  Amount %
Purchase Price $46,200,000    84%
Renovation Cost $5,275,000    10%
Closing Costs $3,000,000     6%
Total Uses $54,475,000 100%
Senior Mortgage Debt $36,500,000    66%
Preferred Equity  $9,000,000    16%
Senior Equity  $6,975,000    14%
GP Equity  $2,000,000     4%
Total Sources $54,475,000 100%

This portfolio benefits from the following:

  • This 511 key portfolio is being acquired at $90,000 per key or an impressive 11.5% cap rate on Trailing 12 NOI.
  • Trailing 12 Month NOI of $5.3 million.
  • Your returns are projected to be a 3.93x equity multiple, a 31% IRR and an average cash of cash return of approximately 24% over the 5 year hold period.

The Sponsor is a hotel expert and is one of the foremost consulting and advisory firms focused exclusively on hotel and resort assets worldwide.

To learn more about this hospitality investment opportunity contact Steven Weiss at sweiss@carltongroup.com or call him at (212) 716-5631.

Please fill out the form below and visit our registration page at http://carltongroup.com/investor-registration/.

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24% Cash On Cash (31% IRR) on 511 Key Limited Service Hotel Portfolio