Investment Inquiry

Market

Right Arrow

Team

Right Arrow

06. Financials

Deal Highlights

25.2%

LP IRR

3.2x

LP MOIC

15.8%

UYOC

Assumes exit in Year 7 at 9% cap rate

Living room

Deal Terms

Annual operating cashflows will be distributed 80% to LPs and 20% to GPs after a 9-12% annual preferred return and GP catch-up. After LPs receive full return of capital plus a 9-12% annual compounded return, the GP will catch-up, then all remaining profits will be split 60% to the LP and 40% to the GP.

Operating cashflow split

80 / 20

Operating cashflow hurdle

pref

Capital event split

60 / 40

Capital event hurdle

return of capital + pref

Preferred return ("pref")

9-12%

Asset management fee

2%

Capital Stack
Common equity

$12.5M

Preferred equity

$5.3M

Debt

$26.7M

Hotel Comparables*

Private Water Features
Spa Amenities
High Quality F&B
Set Within or View of Nature
Event Space
High Staff-to-Guest Ratio
Cypress Valley*

$595 / night

Cross
Private Water Features
Cross
Spa Amenities
Cross
High Quality F&B
Cross
Set Within or View of Nature
Cross
Event Space
Cross
Significant Staff-to-Guest Ratio
View Photos Sedona Circle Cave
Onera*

$634 / night

Cross
Private Water Features
Cross
Spa Amenities
Cross
High Quality F&B
Cross
Set Within or View of Nature
Cross
Event Space
Cross
Significant Staff-to-Guest Ratio
View Photos Sedona Circle Cave
Oasi Hill Country*

$798 / night

Cross
Private Water Features
Cross
Spa Amenities
Cross
High Quality F&B
Cross
Set Within or View of Nature
Cross
Event Space
Cross
Significant Staff-to-Guest Ratio
View Photos Sedona Circle Cave
Ambiente Sedona*

$1,249 / night

Cross
Private Water Features
Cross
Spa Amenities
Cross
High Quality F&B
Cross
Set Within or View of Nature
Cross
Event Space
Cross
Significant Staff-to-Guest Ratio
View Photos Sedona Circle Cave
Miraval Austin*

$1,424 / night

Cross
Private Water Features
Cross
Spa Amenities
Cross
High Quality F&B
Cross
Set Within or View of Nature
Cross
Event Space
Cross
Significant Staff-to-Guest Ratio
View Photos Sedona Circle Cave

*Nightly rates are estimated based on publicly available data

Performance Metrics

$798

ADR*

79.0%

Occ.

$628

RevPAR

45.8%

NOI Margin

Profit & Loss

Operating Year12345
Revenue12,558,81314,524,45415,117,84515,571,38016,038,521
Expenses
Management Fees1,300,2041,506,2271,570,3591,617,4701,665,994
Sales and Marketing966,2001,000,4501,035,5601,066,6261,098,625
Experiences / F&B COGS1,982,6392,269,0202,337,0912,407,2042,479,420
Rooms670,023727,321749,140771,614794,763
Ops & Maintenance1,411,8861,454,2431,497,8701,542,8061,589,091
Administrative & General528,546782,7171,030,0271,069,2371,110,021
Total Expenses6,859,4987,739,9788,220,0478,474,9578,737,914
NOI5,699,3156,784,4766,897,7987,096,4237,300,607
 
Investment

Cost Overview

  • Land & closing costs

    $2,550,977

  • Acquisition fee

    $52,500

  • Pre-construction

    $3,523,000

  • Site work & utilities

    $4,900,000

  • Construction of units

    $14,250,000

  • Amenities, venue, restaurant

    $6,750,000

  • Back-of-house facilities

    $1,355,000

  • Debt service

    $4,165,081

  • Furniture & Decor

    $1,350,000

  • Marketing

    $925,000

  • Contingency

    $1,793,354

  • Development fee

    $2,136,239

  • Total

    $44,498,730

Left Arrow

Market

Team

Right Arrow