Hotel

Hotel Investment
Fund I

The HDP Investment Fund I, LLC portfolio includes 12 hotels with 1,225 rooms in Atlanta, Charleston, SC and Miami Beach. This includes 10 Marriott branded select service hotels, one by Hilton and one by Choice. The Residence Inn Miami Beach / Surfside and Hampton Inn & Suites Sterling Pointe were ground up construction projects. Calendar year 2017 was the first year of operations after $116M of construction and renovations. By year-end 2017, distributions will total 38% of Fund I equity. This includes monetizing 2 of 4 retail out parcels that are part of the Sterling Pointe mixed-use project in Atlanta’s Central Perimeter. While 2018 operating budgets are aggressive by design, these projections result in an annual return of 16% on Fund I’s equity investment. The value created in the Fund l hotel portfolio provides near-term disposition options, which along with two remaining retail out parcels worth approximately $10M, could result in additional distributions in 2018
Beachfront Hotels

FUND I PORTFOLIO

Each of the following hotels was acquired directly through the relationships of the HDP principals. This off-market approach enhances HDP’s ability to deliver above-market returns to its Fund I investors.

This Portfolio Includes:

  • Fairfield Inn & Suites (Marriott) in Charleston, South Carolina: Built in 2000/Renovated in 2011, 102 Rooms
  • Residence Inn (Marriott) in Miami Beach/Surfside, Florida: Built in 2015, 175 Rooms
  • Hampton Inn & Suites (Hilton) in Atlanta/Perimeter Center, Georgia: Built in 2015, 138 Rooms
  • Residence Inn (Marriott) in Charleston, South Carolina: Built in 2012, 96 Rooms
  • Fairfield Inn & Suites (Marriott) in Charleston, South Carolina: Built in 2005/Renovated in 2013, 102 Rooms
  • Sleep Inn (Choice Hotels) in Charleston, South Carolina: Built in 2001/Lobby Renovated in 2013, 68 Rooms
  • Fairfield Inn & Suites (Marriott) in Alpharetta, Georgia: Built in 1995/Renovated in 2006-2007, 87 Rooms
  • Fairfield Inn & Suites (Marriott) in Atlanta/Buckhead, Georgia: Built in 1997/Renovated in 2006-2007, 115 Rooms
  • Fairfield Inn & Suites (Marriott) in Macon, Georgia: Built in 1999/Renovated in 2006-2007, 78 Rooms/Sold in February 2016 
  • Fairfield Inn & Suites (Marriott) in Atlanta/Dunwoody/Perimeter Center, Georgia: Built in 1997/Renovated in 2006-2007, 114 Rooms
  • SpringHill Suites (Marriott) in Alpharetta, Georgia: Built in 1999/Renovated in 2006-2007, 82 Rooms
  • TownePlace Suites (Marriott) in Alpharetta, Georgia: Built in 1997/Renovated in 2006-2007, 88 Rooms
  • TownePlace Suites (Marriott) in Kennesaw, Georgia: Built in 2000/Renovated in 2006-2007, 82 Rooms

SALIENT FACTS FOR FUND I

These forward-looking estimates are based on conservative estimates of future interest rates and expectations of flat exit cap rates. It should be clearly understood that revenue potential in the hospitality business adjusts daily, offering both positive and negative variances from projections.

Fortunately, hospitality benefits from inflationary pressure, while being in a position to take advantage of continued cap rate compression.

This enviable multiple hedge position is why institutional investors have made significant moves into select service hospitality over the past 18 months.

Fund I Facts & Estimates:

  • Fund I Total Capitalization/Investment: $187 Million
  • Fund I Equity: $24.5 Million
  • Co-Investment: $44 Million ($28 Million from Ares Capital)
  • Total Portfolio Equity: $68.5 Million
  • Debt Ratio: 64.17%
  • Total Number of Hotels/Rooms: 13/1,309
  • Stabilized NOI: $20.7 Million
  • Estimated Cash on Cash: 16%+
  • Estimated Sales Value: $268 Million
  • Estimated Profit: $81 Million
  • IRR: 28%+

Fairfield Inn & Suites (Marriott) Atlanta, Alpharetta- SOLD

  • Built in 1995
  • 87 Rooms 

Fairfield Inn & Suites (Marriott) Atlanta, Buckhead- SOLD

  • Built in 1997
  • 115 Rooms

Fairfield Inn & Suites (Marriott) Atlanta, Perimeter Center- SOLD

  • Built in 1997
  • 114 Rooms

Fairfield Inn& Suites (Marriott) Charleston Airport, Convention Center- SOLD

  • Built in 2000
  • 102 Rooms

Fairfield Inn& Suites (Marriott) Charleston North, Ashley Phosphate- SOLD

  • Built in 2005
  • 85 Rooms

Fairfield Inn & Suites (Marriott) Macon- SOLD

Hampton Inn & Suites (Hilton) Atlanta/Perimeter Center, Georgia- SOLD

  • Built in 1997
  • 114 Rooms

Residence Inn (Marriott) Charleston North, Ashley Phosphate- SOLD

  • Built in 2012
  • 96 Rooms

Residence Inn (Marriott) Miami Beach, Surfside

  • Built in 2016
  • 175 Rooms

Sleep Inn (Choice Hotels) Charleston North- SOLD

  • Built in 2001
  • 68 Rooms

SpringHill Suites (Marriott) Atlanta, Alpharetta- SOLD

  • Built in 1999
  • Renovated in 2007
  • 82 Rooms

TownePlace Suites (Marriott) Atlanta, Alpharetta- SOLD

  • Built in 1997
  • Renovated in 2007
  • 88 Rooms 

TownePlace Suites (Marriott) Atlanta, Kennesaw- SOLD

  • Built in 2000
  • Renovated in 2007
  • 82 Rooms 

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