I have a 98 unit hotel that is used for long-term stay. I took this hotel over in April 2021. Since I have taken over this hotel has been in need of many repairs, and many I have done. The biggest repairs that are needed are the roof and plumbing. In addition, we also need to update the rooms since the furniture has been around since the 80s. Lastly we will be updating the check-in system and the lighting around the hotel. Upon completion on this, revenue will increase by $15K a month.
Investors will own 50% of the equity of this project, with an 18 month optional buyout. The hotel is located in El Paso, Texas. Currently right off of interstate 10, a Starbucks is being built across the street, and a strip mall is being developed.
We are seeking $500,000.00, of which $130,00.00 is raised so far. With the work that will be done to the hotel, described below, we will increase our weekly rates from $199 a week to $229 a week and will increase revenue by $15K a month. Investors should receive a minimum of 15% ROI, a quarterly distribution beginning end of the 3rd quarter 2022, and an 18th month optional buyout.
Although we are currently in the black and have grown, and we have many additional rooms operational, we are at a bottleneck with 75 rooms due to plumbing issues in the hotel. We have had to turn away business. Our goal is to get 90 rooms operation, with continuous work on a few rooms, which will increase occupancy and revenue.
See details below.
What has been done since I have taken over:
- Went from 60 operation rooms to 85. (Due to plumbing issues we are in the 70s).
- Over 30 PTAC units.
- Boiler repair.
- Getting our presence online - letting community know about us.
- New supplies for housekeeping/rooms.
- Major repairs to some rooms in hotel.
- Online presence and increase in revenue.
- Increased revenue over $75K
Work to be done on the hotel:
- Roof repair. My current plan gets rid of swamp coolers on top, new coating, and new construction with a 15 year warranty.
- Plumbing - flush out the plumbing of the hotel. This will bring us up to 85 rooms.
- New furniture for rooms, door keys, and check in system that will be in sync with door keys. I will be notified every time a door opens (Hotel Key).
- Exterior signage and lighting.
- Interior painting, carpet, & room upgrades.
Recent changes:
- Went from monthly to weekly room rates. We had some guests leave that had been there for a while, but we are getting more competitive with our rates, and we are making more money.
- Got hotel store back up & running.
- Got banquet room back up & running.
- Pool is back up & operational.
- Internet/TV upgraded - people are loving it.
If you are interested the next step would be to show you the operational agreement. Of the $500K being raised, investors own 50% of equity. The only new change in the agreement is we are offering a 18 month opt out.
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