Four Points - Rare Conversion from Independent to a Marriott Brand

East Hartford, CT

  • Target Annual Cash 17.6%
  • Target IRR 30%
  • Target Equity Multiple 2.1x
  • Asset Profile Value Add
  • Min. Investment $25K
  • Estimated Hold 3Y

This deal is oversubscribed

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DNA Lodging LLC North Attleborough, MA

Hospitality Property

About this Property

DNA Lodging LLC is pleased to be seeking investors for the off-market acquisition of a leasehold interest in a 130-guestroom independent hotel to be renovated and converted into a 140-guestroom Four Points by Sheraton of the Marriott family (“Hotel”), in East Hartford, Connecticut. The Property will become the closest hotel to the Pratt & Whitney / United Technologies (“UTC”) headquarters, America’s 7th largest government contractor, making the Hotel the most easily accessible lodging facility for UTC’s 40,000+ room night demand per year. The Hotel will offer over 3,000 sq. ft. of flexible meeting space, complimentary shuttle service, and a full-service restaurant.

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Key Points

  • Conservative Assumptions with High Returns – 30% IRR and 17.6% cash-on-cash expected.
  • Rare Value Add – Convert an independent hotel to a Marriott family brand, a Four Points by Sheraton in this case.
  • Opportunity Zone Investment – This investment will allow investors to defer their capital gains.
  • Low Cost Entry – $1,465,000 ground lease purchase with an option to buy land for $3,300,000 within 5 years. Rent starts at $75k annually.
  • No Supply Concerns – The Hotel’s competitive area has only had two hotels open since 2008. Given lending market for new construction is tight, no other new projects in the immediate market are in planning.
  • Long Term Marriott Brand – Approved for a 20-yr licensing of the Four Points by Sheraton brand.
  • Experienced Sponsor – 28% 2017 cash-on-cash on new build & renovated hotels; success through Great Recession.
  • Low Budgeted Cost Per Key – $86k per key total budget representing a 43% and 47% discount to appraisal and replacement cost, respectively.

Financials

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Offering Financial

Location Details

East Hartford, CT

The Hotel is centrally located to and in close proximity to Hartford’s key demand drivers. The Hotel is less than a mile away from United Technology Corporation’s (UTC) campus entrance and no other upscale hotel until reaching Hartford downtown. UTC rents 40,000+ room nights in the Hartford area. The Hotel is only a 2 minute drive from Rentschler Field and closest hotel where 6-7 UCONN home football games and over 100 other events take place. The Hotel is only 4-6 minutes from Hartford’s 400+ events annually at the XL Center (UConn Basketball), Dunkin Donuts Park (Minor League Baseball), Dillon Stadium (USL Soccer), UCONN Downtown & CT Convention Center. The Hotel is also centrally located to USSSA Youth Sports Tournament Fields – there were 22 tournament weeks/weekends in 2017 on the fields across the I-84 (2 minute drive). Finally, the Hotel is adjacent to Exit Ramp 58 off I-84 which has 160,000 average daily traffic.

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Documents

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Offering Agreement Documents

Frequently Asked Questions

Below are some of the most frequently asked questions about this offering.

The funding deadline is October 17th, 2018.

The first projected distribution is scheduled for December 2019.

Distributions are scheduled to go out on a quarterly basis.

No, this offering is only available to US residents.

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Have a Question?

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