18034-Napali-HI Bedford Deck-111318 · Holiday Inn DFW Airport Area West Holiday Inn DFW Airport...
Transcript of 18034-Napali-HI Bedford Deck-111318 · Holiday Inn DFW Airport Area West Holiday Inn DFW Airport...
HOLIDAY INN DFW AIRPORT AREA WEST
OFFERING OVERVIEWPRESENTED BY:
950 E. STATE HIGHWAY 114
STE. 160
SOUTHLAKE, TX 76092
NAPALICAP.COM
HOLIDAY INN DFW AIRPORT AREA WEST
OFFERING OVERVIEWPRESENTED BY:
A whol ly-owned company of
NAPALI CAPITAL, LLC
COMMITMENT FORM LINK
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DISCLAIMER
Nothing in th is presentat ion shal l be construed as an offer for investment in Napal i Hospital i ty One, LLC ( the “Company”) . Sol ic i tat ions for investments
by the Company wi l l only be made through a Pr ivate Placement Memorandum provided by the Company to potent ia l investors for such purpose.
The information contained in th is information packet is conf ident ia l and is sole ly for the use of providing information about the Company’s business
model and investment strategies. The information contained herein is the sole property of the Company and may not be copied or reproduced without
the express wr i t ten consent of the Company. Whi le the information contained in th is presentat ion has been compi led from sources we bel ieve to be
re l iable, neither the Company nor i ts representat ives make any representat ions or warrant ies as to the accuracy or completeness contained herein . Al l
f inancial information used in th is information packet and project ions are provided for reference only and are based on assumptions re lat ing to the
general economy, market condit ions, and other factors beyond the Company’s control .
Statements included in th is presentat ion address act iv i t ies , events or developments that the Company ant ic ipate wi l l or may occur in the future. These
statements are based on certain assumptions and analyses made by the Company in l ight of i ts exper ience and percept ion of h istor ical t rends,
current condit ions and expected future developments. However, whether actual results wi l l conform with these expectat ions is subject to a number of
r isks and uncertaint ies, many of which are beyond the control of the Company, including but not l imited to including r isks endemic to real estate
invest ing, including var iat ions in resident ia l housing demand, general business cycles and interest rate changes . Thus, a l l of the forward- looking
statements made in th is information packet are qual i f ied by these caut ionary statements. There can be no assurance that actual results of any
investment program wi l l conform to the Company’s expectat ions.
TABLE OFCONTENTS
4 NAPALI HOSPITALITY GROUP TEAM 17 BUSINESS PLAN
18 PROPERTY IMPROVEMENT PLAN 26 AFFILIATION AND MANAGEMENT5 NAPALI HOSPITALITY GROUP ADVISORY BOARD
19 F INANCIAL ANALYSIS 27 ACQUISITION TIMELINE6 EXECUTIVE SUMMARY
20 PROJECTED INVESTOR RETURN 28 PARTNERSHIP STRUCTURE8 PROPERTY OVERVIEW
21 PROFORMA FINANCIALS13 MARKET OVERVIEW
23 FINANCING DETAILS15 COMPETITIVE SET ANALYSIS
24 SOURCES AND USES
29 PROPERTIES UNDER MANAGEMENT
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NAPALI HOSPITALITY GROUP TEAM
Tim BlackTim Black is co-founder and Managing Partner of Napali Capital and brings
32 years of executive level management experience to the company. Most
recently, he served as Chief Operating Officer of Great Wolf Resorts, where
he maximized revenue through pricing, demand, digital marketing, and
implementation of new revenue streams and predicted consumer behavior
and pricing strategies for entire portfolio of resorts. He worked directly with
private equity and served as a key player in resort development assisting in
planning, spatial layout, guest traffic flows, and design aimed at maximizing
revenue per square foot and efficiently control operating costs. Mr. Black
was instrumental in growing the company’s U.S. portfolio by eight resorts
and increasing EBITDA by 49 percent. Thomas Black, M.D.Thomas Black, M.D., is co-founder and managing partner of Napali
Capital, a board-certified emergency medicine physician, and a
13-year veteran of the U.S. Armed Forces. His real estate career began
in residential mortgage loans at Wells Fargo Financial as an
undergraduate. Following graduation from medical school, he began
investing in real estate, eventually shifting his focus from single-family
to multifamily assets. In 2016, he co-founded Napali Capital which
creates wealth for physicians through real estate investment and
passive income. and currently manages more than $110M in assets.
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Kimberly SchaeferKimberly Schaefer serves as Key Principal for Napali Hospitality Group and
member of the company's Advisory Board. She has more than 25 years in
finance, leadership, and executive oversight specific to the hospitality
industry. Kimberly served in numerous executive positions at Great Wolf
Resorts, including Senior Vice President of Operations, Chief Brand Officer,
Chief Operating Officer, and Chief Executive Officer. She was integral in the
company's IPO (WOLF) in 2005, setting the strategic direction for the brand
and presenting WOLF to the public markets. Under her direction, the
portfolio grew from one to 14 resorts and created more than $130 million in
EBITDA, leading to its eventual sale to private equity, first in 2013 and again
in 2015. Kimberly also personally has owned numerous hotels under
nationally recognized brands.
The experience and talent of Napali Capital leadership, paired with the
additional expertise of Napali Hospitality's new team member, provides an
incredible foundation and l imitless resource for our hospitality-based investment
company.
Napali Hospitality Group's vision is to become a recognized leader in the
hospitality industry through select- and full-service hotel ownership and
management by delivering the highest level of employee and guest service and
achieving profitable returns for our investors and stakeholders.
NAPALI HOSPITALITY ADVISORY BOARD
Bill SimpsonBill Simpson is an experienced Chief Executive Officer and Board
Director with 40 years of experience in the hospitality and entertainment
industries. Most recently, he worked with Hershey Entertainment and
Resorts Company for 21 years, serving as its CEO from 2013 until his
retirement in 2017, during which time, he and his team achieved record
financial results, increasing revenue by 20 percent and EBITDA by 46
percent. Bill’s reputation for strong organization development that
focuses on company culture, team building, training and development,
and succession planning is recognized throughout the industry.
Rilous CarterRilous˜Carter is a forty-five-year veteran of the hospitality industry. His
early˜industry career˜includes˜leadership and management roles at
Hyatt Hotels and Resorts and Stouffer Hotels and Resorts, now
Renaissance Hotels & Resorts.˜In 1997, Rilous joined Walt Disney World
Resort˜where he served in numerous management and critical team
roles at˜numerous Disney World Resorts and Disney’s portfolio of
exclusive Vacation Club offerings. Before his retirement in 2016, Rilous
was Vice President of Disney’s Hollywood Studios theme park, Epcot and
then of Catering, Convention Services, and Park Event Operations for all
Walt Disney Parks and Resorts.
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Napali Hospitality Group’s team of experienced leadership combines their
industry knowledge with the Napali Hospitality Group Advisory Board which
consists of highly-qualif ied members. These members offer industry expertise
gained through their extensive careers as management and operations leaders in
major, nationally and internationally recognized hospitality brands including Walt
Disney World Resort, Hershey Entertainment and Resorts Company, and Stouffer
Hotels and Resorts, now Renaissance Hotels & Resorts.
EXECUTIVE SUMMARYHoliday Inn DFW Airport Area WestHoliday Inn DFW Airport Area West is a f ive-story, mid-rise, ful l-service
hotel located eight minutes from DFW Airport, and is centrally located
between Dallas and Ft. Worth at the 183/Airport Freeway interchange.
cThe 5,200 SF of f lexible meeting space that can host up to 240 guests. The
80-seat 3B Bistro, the hotel’s onsite restaurant, serves breakfast and dinner
daily alongside the hotel’s bar & patio which offers ful l l iquor service and a
select dinner service daily. Additional guest amenities include a f itness
center with cardio and fitness equipment, an expansive outdoor pool, a patio
with an outdoor seating area, and landscaped grounds.
The hotel’s guestrooms were renovated in 2014 and are located on floors
one through five of the hotel.
INVESTMENT HIGHLIGHTS
OFFERING SUMMARY PARTNERSHIP STRUCTURE
This investment is projected to return greater than 9% annualized cash on cash and an
estimated overall return of 98.5%. Napali Hospitality Group wil l seek a disposition in
approximately 5 to 7 years at which time returns are projected to be an equity multiple
of 1.96x.
Target Investor Equity Multiple
1.96%Target Average Cash on
Cash Return
>9%Target Annual
Return
16%
The hotel ideally is located at the intersection of two freeway systems
midway between Dallas and Fort Worth and minutes from the DFW
International Airport, the fourth busiest airport in the country.
Offers an attractive investment of 8.8% entry cap rate with a per-key
room purchase price of $61,000. This is unparalleled for a ful l service
hotel in a major market.
The property improvement plan (PIP) al lows this investment to maintain
a comparatively low all- in investment basis.
Purchase Price $14,800,000.00
Projected Hold Time 5-7 Years
Equity Required $5,450,000
Loan Proceeds $13,000,000
OFFERING SUMMARY
20%S P O N S O R S
80%I N V E S T O R S
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* Year 3 begins permanent f inancing. Numbers shown uti l ize 1% great interest than current marketrates to provide conservative estimates.** $100,000 investment yields an estimated$198,500 upon sale.
PROJECTED RETURNS ON $100,000 INVESTMENT IN HOLIDAY INN
Investor Annual Percent Return
Year 1
9.7%
$9,700
Year 2
10.3%
$10,280
Year 3*
7.0%
$7,000
Year 4
7.1%
$7,060
Year 5
7.7%
$7,720
Year 6**
154.0%
$154,000Investor Return on Investment
PROPERTY OVERVIEW
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PROPERTY OVERVIEWPROPERTY SUMMARYNumber of Units 243 Units
Year Completed 1975, Renovated in 2014
Stories 5 Stories, Interior Corridor
Land Area +/- 4.13 Acres
Parking +/-265 Spaces, Surface
SITE
Address
County Tarrant County
3005 Airport Freeway, Bedford, Texas 76021
Size/Density 243 Units
MEETING CONFERENCE ROOM GENERAL INFO
SPACE FLOOR/SIZE
Lonestar Ballroom Ground Floor/2592 SF
Longhorn Meeting Room 1 Ground Floor/624 SF
Longhorn Meeting Room 2 & 4 Ground Floor/1274 SF
Longhorn Meeting Room 3 Ground Floor/624 SF
ROOM TYPE SUMMARY
TYPE # UNITS % UNITS SIZE (SF)*
King 131 54% 312 SF
Double Double 96 39% 312 SF
One Bedroom Suite 2 1% 600 SF
ADA 14 6% 412 SF
Total 243 Units 77,792 SF
Holiday Inn DFW Airport Area West is a f ive-story, mid-rise, ful l-service hotel located eight minutes
from DFW Airport, and is centrally located between Dallas and Ft. Worth at the 183/Airport
Freeway interchange. The hotel contains 5,200 SF of f lexible meeting space that can host up to 240
guests. The 80-seat 3B Bistro, the hotel’s onsite restaurant, serves breakfast and dinner daily
alongside the hotel’s bar & patio which offers ful l l iquor service and a select dinner service daily.
Additional guest amenities include a f itness center with cardio and fitness equipment, an expansive
outdoor pool, a patio with an outdoor seating area, and landscaped grounds. The hotel’s guest
rooms were renovated in 2014 and are located on floors one through five of the hotel.
Restaurant ˜ ˜
Bar Lounge
Complimentary WiFi˜ ˜
High-Speed Internet
Guest Laundry
˜
Flat Screen TVs˜ ˜
In-Room Coffee Maker
Free WiFi
Desk
Iron/Ironing Board
Microwave/Refrigerator ˜
Hair Dryer˜ ˜
Granite Vanities
ADA Rooms*
In-Room Safe˜ ˜
*In Select Units
Outdoor Pool with Hot Tub
Business Center
Fitness Center ˜
Meeting & Conference Rooms
TYPE # UNITS % UNITS SIZE (SF)*
* In Select Units
HOTEL AMENITIES ROOM AMENITIES
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PROPERTY OVERVIEWCONTINUED 1
GUEST ROOMS & SUITES
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HOTEL AMENITIES
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Outdoor Pool & Hot Tub
Front Desk Lobby
Bar
Guest Lounge
Patio Seating
Lobby
DIMENSIONS (FEET)
EVENT ROOM ROOM DIMENSIONS AREA CEILING DOOR DIMENSIONS FLOORL X W SQ FT HEIGHT H X W LEVEL
Lonestar Ballroom 36 X 72 2592 13 7 X 5 GRND
Longhorn Meeting Room 1 24 X 26 624 10 7 X 3 GRND
Longhorn Meeting room 2 & 4 49 X 26 1274 10 7 X 3 GRND
Longhorn Meeting Room 3 24 X 26 624 10 7 X 3 GRND
CAPACITIES BY LAYOUT
EVENT ROOM HOLLOW SQUARE BOARDROOM U-SHAPE CLASSROOM RECEPTION BANQUET THEATRE CABARETSTYLE STYLE STYLE STYLE STYLE STYLE STYLE STYLE
Lonestar Ballroom 50 60 60 70 150 160 200 –
Longhorn Meeting Room 1 20 15 15 20 20 15 30 30
Longhorn Meeting room 2 & 4 16 16 19 27 765 32 50 30
Longhorn Meeting Room 3 15 20 20 30 30 20 30 20
MEETING & CONFERENCE ROOMSCONTINUED 2
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MARKET OVERVIEW
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LOCATION OVERVIEW
DEMAND GENERATORS
DFW Internat ional Airport is located 8 minutes north of the hotel . I t
occupies 18,000 acres and is the fourth busiest a irport in the country
(t twe l f th in the wor ld—2017 data) . I t served 66 mi l l ion passengers in 2017
and f l ies to 200+ dest inat ions, provides 228,000 jobs, and has an
economic impact on North Texas of $37 bi l l ion annual ly . Talks are
underway for a $37 bi l l ion, s ixth terminal with 30 gates, to open in 2020.
The impact of the airport ’s s ize, proximity to the Hol iday Inn and i ts
p lanned, cont inued growth cannot be overstated.
The hotel ’s central locat ion provides access to I rv ing, Grand Prair ie ,
Hurst , Euless, Bedford, North Richland Hi l ls , Ar l ington, and Col leyvi l le , and
the hotel ’s h igh v is ib i l i ty offers outstanding exposure from TX 183—the
recent ly upgraded Airport Freeway—and from TX 121.
Accessibi l i ty to area demand generators such as the DFW Airport , the
North East Mal l , AT&T Stadium (Dal las Cowboys) , Globe L i fe Park (Texas
Rangers) , and Six F lags Over Texas Amusement Park.
LOCAL POPULATION
The Dal las-Fort Worth Metroplex is the fourth largest metro area in the U.S. in eco-
nomic output and populat ion. Comprised of three major c i t ies (Dal las, Fort Worth and
Ar l ington) , the Metroplex is center court for the booming North Texas region and home
to 20 Fortune 500 company headquarters . Only 3 U.S. c i t ies rank higher .
Bedford, the town in which the hotel is located, is s i tuated between Dal las and Fort
Worth in an area cal led Mid-Cit ies/Tr i-Cit ies . Considered a suburb of Fort Worth, i t is
associated with the DFW Airport .
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DALLAS/FORT WORTH METROPOLITAN STATISTICAL AREA (MSA)
The Dal las/Fort Worth Metroplex is the fourth largest metro area
in the U.S. in economic output and populat ion. Comprised of three
major c i t ies (Dal las, Fort Worth and Ar l ington) , the Metroplex is
center court for the booming North Texas region and home to 20
Fortune 500 company headquarters . Only 3 U.S. c i t ies rank higher.
Est. 2018Construction
Activity
$22B 2017
ConstructionActivity
LOCATION OVERVIEWCONTINUED 1
• #1 ranking in PwC 2019 Emerging Trends
in Real Estate
• #1 in job growth among 12 top MSA’s
• Home to 7 .4 mi l l ion residents
• $460 Bi l l ion GDP
• 220 mi l l ion square feet of off ice space
• 25+ major col leges and univers i t ies
• 25 mi l l ion annual v is i tors
$23B
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HOLIDAY INN vs. COMPETITIVE SET SMITH TRAVEL REPORT (STR) SEPTEMBER 2018
Current Month 77.5 76.7 101.1 84.59 98.31 86.1 65.60 75.43 87.0
Year To Date 80.0 78.2 102.3 86.14 98.32 87.6 68.94 76.90 89.7
Running 3 Month 72.7 75.4 96.4 83.06 96.54 86.0 60.41 72.82 83.0
Running 12 Month 79.9 76.5 104.4 86.90 97.87 88.8 69.44 74.88 92.7
Holiday Inn DFW Airport Area West3005 Airport Freeway, Bedford, Texas 76021
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My Prop Comp Set Index (MPI) My Prop Comp Set Index (MPI) My Prop Comp Set Index (MPI)
SEPTEMBER 2018
Current Month -4.0 1.0 -5.0 0.9 -2.0 3.0 -3.1 -1.0 -2.2
Year To Date -4.4 5.8 -9.6 19.3 -1.1 20.5 14.0 4.7 9.0
Running 3 Month -11.7 1.2 -12.8 8.0 -0.7 8.8 -4.7 0.5 -5.1
Running 12 Month -3.5 5.9 -8.9 20.9 -0.6 21.6 16.7 5.3 10.8
My Prop Comp Set Index (MPI) My Prop Comp Set Index (MPI) My Prop Comp Set Index (MPI)
SEPTEMBER 2018 VS. 2017 PERCENT CHANGE (%)
OCCUPANCY (%) ADR REVPAR
OCCUPANCY (%) ADR REVPAR
INVESTMENT HIGHLIGHTS
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The business plan is to complete property improvements
according to Intercont inental Hotel Group ( IHG) specif icat ions,
to comply with brand requirements and improve operat ions to
increase revenue and maintain the competi t ive edge among
area fu l l serv ice hotels .
BUSINESSPLAN
• Fitness Center • Guest Laundry
• Outdoor Pool • Rooms, Suites, Bathrooms
• Elevators, Corridors • ADA Rooms, Bathrooms
• Vending Areas
Complete guest area and amenity improvements, according to IHG brand specifications in the fol lowing areas:
Complete common area improvements, according to IHG brand specifications in the fol lowing areas:
Guest Area and Amenity Improvements
• Entrance • Restaurant
• Lobby • Public Restrooms
• Front Desk Area • Conference
• Business Center • Meeting Rooms
• Bar
Common Area Improvements
• Napali Hospitality Group wil l seek disposition of the asset in 5 to 7 years.
• During the renovation and Property Improvement Plan (PIP) we wil l be growingEBITDA to increase debt yield for a conversion to securit ized long-term debtafter 24 months.
• Projected returns at disposition are an equity multiple of 1.96x, an estimatedoverall return of 98.5%, and a cash on cash average of >9% per year.
• Attractive entry cap allows for equity upside with further stabil ization.
Exit Strategy
Upon closing we wil l immediately begin to implement our business plan to include:
• Introducing new 3rd party management company
• Begin capital spending program to complete the property improvement plan (pip),
• Implement vertical group sales strategy,
• Rebrand & refresh the bar and restaurant offerings to increases profitabil ity,
• Implement comprehensive revenue maximization plan (RevMax)
Operational Improvements
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PROPERTY IMPROVEMENT PLAN (PIP)
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FINANCIAL ANALYSIS
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PROJECTED INVESTORRETURNS
The fo l lowing chart and graph represent project ion for
potent ia l income streams for an investor making a $100,000
equity contr ibut ion.
Target Investor Equity Multiple
1.96%Target Average Cash
on Cash Return
>9%Target Average Annual Return
16%
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INVESTOR RETURNS
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 5
CoC Return (%) Cumulat ive CoC ($) Gain Upon Sale
Cash on Cash Return ($) $9,700 $10,280 $7,000 $7,000 $7,700 $8,260
Cash on Cash Return (%) 9.7% 10.28% 7.0% 7.0% 7.7% 8.26%
Equity upon exit ($) – – – – – $49,010
Equity upon exit (%) 0% 0% 0% 0% 0% 49.75%
Total Cumulative Return (%) 9.7% 20.0% 27.0% 34.0% 42.0% 98.5%
YEAR 1$100,000 YEAR 2 YEAR 4 YEAR 3* YEAR 5 YEAR 6
Total Cumulative Return ($) $9,700 $19.980 $26,980 $33,980 $41,680 $98,500
$100,000
$80,000
$60,000
$40,000
$20,000
$–
*Bridge to permanent securit ized debt year 3.
PROFORMAFINANCIALS GROWTH RATE DRIVERS
Rooms Transient 1.4% 1.0% 1% 1%
ADR Transient 1.5% 1.5% 1.50% 1.75%
Ancillary Revenue 1% 2% 1% 1%Labor 2% 2% 2% 2%Expenses 3% 3% 3% 2%Fixed Expenses 3% 3% 3% 2%
2020
2019 2020 2021 2022 2023
2021 2022 2023
Rooms Available Daily 243 243 243 243 Rooms Available Annually 88,695 88,938 88,695 88,695
Annual Rooms Occupied 73,262 82.6% 74,288 83.5% 74,993 84.6% 75,443 85.1% 75,858 85.5%Transient 73,262 74,288 74,993 75,443 75,858
Average Daily Rate $86.00 $87.29 $88.60 $89.93 $91.50
RevPAR 71.04 72.91 74.91 76.49 78.26
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24388,695
PROFORMAFINANCIALS HOLIDAY INN 6-YEAR PROFORMA
2019 2020 2021 2022 2023$ % PAR POR $ % PAR POR $ % PAR POR $ % PAR POR $ % PAR POR
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Rooms $6,300,532 91.0% $71.04 $86.00 $6,484,571 91.1% $72.91 $87.29 $6,644,367 91.0% $74.91 $88.60 $6,784,496 91.1% $76.49 $89.93 $6,941,193 91.1% $78.26 $91.50Transient 6,300,532 91.0% $71.04 86.00 6,484,571 91.1% $72.91 87.29 6,644,367 91.0% $74.91 88.60 6,784,496 91.1% $76.49 89.93 6,941,193 91.1% $78.26 91.50
Group - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - Other Rooms - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 -
Food & Beverage 583,898 8.4% $6.58 7.97 595,329 8.4% $6.69 8.01 613,004 8.4% $6.91 8.17 622,849 8.4% $7.02 8.26 632,538 8.3% $7.13 8.34 Retail - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 -
Miscellaneous 40,294 0.6% $0.45 0.55 41,083 0.6% $0.46 0.55 42,303 0.6% $0.48 0.56 42,982 0.6% $0.48 0.57 43,651 0.6% $0.49 0.58
Total Revenue 6,924,724 100.0% $78.07 94.52 7,120,983 100.0% $80.07 95.86 7,299,674 100.0% $82.30 97.34 7,450,328 100.0% $84.00 98.75 7,617,381 100.0% $85.88 100.42
Food & Beverage 128,458 22% $1.45 1.75 132,311 22.0% $1.49 1.81 136,281 22.0% $1.54 1.86 140,369 22.0% $1.58 1.92 143,176 22.0% $1.61 1.95 Retail - 0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 22.0% $0.00 - - 22.0% $0.00 -
Miscellaneous 8,865 22% $0.10 0.12 9,038 22.0% $0.10 0.12 9,307 22.0% $0.10 0.12 9,456 22.0% $0.11 0.13 9,603 22.0% $0.11 0.13 Total Cost of Sales 137,322 2.0% $1.55 1.87 141,350 2.0% $1.59 1.90 145,587 2.0% $1.64 1.94 149,825 2.0% $1.69 1.99 152,780 2.0% $1.72 2.01
Rooms 1,025,668 16.3% $11.56 14.00 1,046,181 16.1% $11.76 14.28 1,067,105 16.1% $12.03 14.57 1,088,447 16.0% $12.27 14.86 1,110,216 16.0% $12.52 15.15 Food & Beverage 164,840 28.2% $1.86 2.25 168,136 28.2% $1.89 2.30 171,499 28.0% $1.93 2.34 174,929 28.1% $1.97 2.39 178,428 28.2% $2.01 2.44
Retail - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - Miscellaneous 6,594 16.4% $0.07 0.09 6,725 16.4% $0.08 0.09 6,860 16.2% $0.08 0.09 6,997 16.3% $0.08 0.10 7,137 16.4% $0.08 0.10
Total Labor 1,197,101 17.3% $13.50 16.34 1,221,043 17.1% $13.73 16.44 1,245,464 17.1% $14.04 16.61 1,270,373 17.1% $14.32 16.84 1,295,781 17.0% $14.61 17.08
Rooms 971,454 15.4% $10.95 13.26 1,000,598 15.4% $11.25 13.66 1,030,616 15.5% $11.62 14.07 1,061,534 15.6% $11.97 14.49 1,082,765 15.6% $12.21 14.78 Food & Beverage 293,781 50.3% $3.31 4.01 302,594 50.8% $3.40 4.13 311,672 50.8% $3.51 4.25 321,022 51.5% $3.62 4.38 327,442 51.8% $3.69 4.47
Retail - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - Miscellaneous - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 -
Total Opex 1,265,235 18.3% $14.27 17.27 1,303,192 18.3% $14.65 17.54 1,342,288 18.4% $15.13 17.90 1,382,556 18.6% $15.59 18.33 1,410,207 18.5% $15.90 18.59
Departmental Income 4,325,066 62.5% $48.76 59.04 4,455,398 62.6% $50.10 59.97 4,566,335 62.6% $51.48 60.89 4,647,573 62.4% $52.40 61.60 4,758,613 62.5% $53.65 62.73
A&G 484,731 7.0% $5.47 6.62 499,273 7.0% $5.61 6.72 514,251 7.0% $5.80 6.86 529,678 7.1% $5.97 7.02 540,272 7.1% $6.09 7.12 Sales & Marketing 380,860 5.5% $4.29 5.20 392,286 5.5% $4.41 5.28 404,054 5.5% $4.56 5.39 416,176 5.6% $4.69 5.52 424,499 5.6% $4.79 5.60
- 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - - 0.0% $0.00 - Maintenance 373,935 5.4% $4.22 5.10 384,533 5.4% $4.32 5.18 394,182 5.4% $4.44 5.26 402,318 5.4% $4.54 5.33 411,339 5.4% $4.64 5.42
Franchise Fee 512,430 7.4% $5.78 6.99 526,953 7.4% $5.92 7.09 540,176 7.4% $6.09 7.20 551,324 7.4% $6.22 7.31 563,686 7.4% $6.36 7.43 Utilities 221,591 3.2% $2.50 3.02 228,239 3.2% $2.57 3.07 235,086 3.2% $2.65 3.13 242,139 3.3% $2.73 3.21 246,981 3.2% $2.78 3.26
Total Undistributed 1,973,546 28.5% $22.25 26.94 2,031,283 28.5% $22.84 27.34 2,087,749 28.6% $23.54 27.84 2,141,635 28.7% $24.15 28.39 2,186,777 28.7% $24.66 28.83
GOP 2,351,520 34.0% $26.51 32.10 2,424,115 34.0% $27.26 32.63 2,478,586 34.0% $27.95 33.05 2,505,938 33.6% $28.25 33.22 2,571,836 33.8% $29.00 33.90
Management Fees 189,016 3.0% $2.13 2.58 194,537 3.0% $2.19 2.62 199,331 3.0% $2.25 2.66 203,535 3.0% $2.29 2.70 208,236 3.0% $2.35 2.75
Income and Expense 2,162,504 31.2% $24.38 29.52 2,229,578 31.3% $25.07 30.01 2,279,255 31.2% $25.70 30.39 2,302,403 30.9% $25.96 30.52 2,363,600 31.0% $26.65 31.16
Property Taxes 336,738 4.9% $3.80 4.60 346,282 4.9% $3.89 4.66 354,971 4.9% $4.00 4.73 362,297 4.9% $4.08 4.80 370,421 4.9% $4.18 4.88 Insurance 80,000 1.2% $0.90 1.09 82,400 1.2% $0.93 1.11 84,872 1.2% $0.96 1.13 87,418 1.2% $0.99 1.16 89,167 1.2% $1.01 1.18
Other 5,500 0.1% $0.06 0.08 5,665 0.1% $0.06 0.08 5,835 0.1% $0.07 0.08 6,010 0.1% $0.07 0.08 6,130 0.1% $0.07 0.08 FFE Reserve 126,011 2.0% $1.42 1.72 142,420 2.0% $1.60 1.92 291,987 4.0% $3.29 3.89 298,013 4.0% $3.36 3.95 304,695 4.0% $3.44 4.02
Total 548,249 7.9% $6.18 7.48 576,766 8.1% $6.49 7.76 737,665 10.1% $8.32 9.84 753,738 10.1% $8.50 9.99 770,413 10.1% $8.69 10.16
Total Expenses 5,310,469 76.7% $59.87 72.49 5,468,171 76.8% $61.48 73.61 5,758,084 78.9% $64.92 76.78 5,901,663 79.2% $66.54 78.23 6,024,194 79.1% $67.92 79.41
NOI $1,614,255 23.3% $18.20 $22.03 $1,652,812 23.2% $18.58 $22.25 $1,541,590 21.1% $17.38 $20.56 $1,548,665 20.8% $17.46 $20.53 $1,593,188 20.9% $17.96 $21.00
Income Before Non-Operating
Information and Telecommunications
FINANCINGDETAILS
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* Loan amount subject to change pr ior to c lose
FINANCINGDETAILS
Loan Program – Benef i t Street Debt Fund
Lender - Benef i t Street Partners
Interest Rate – L ibor + 425 bps
Interest Only Period - 24 Months
Loan Amount – ~$13,000,000
* Loan amount subject to change pr ior to c lose
Napal i Hospital i ty Group is p lacing new debt f rom Benef i t Street
Fund. The loan wi l l be non-recourse and 71% leverage and an
interest-only note dur ing performance improvement plan. Once
complete, we wi l l p lace permanent secur i t ized debt on the asset. The
underwri t ing depicted intent ional ly incorporates a rate increase to
assume further interest rate increases. To offset any potent ia l large
rate f luctuat ions we have purchased a th ird-party rate cap.
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SOURCES & USES STATEMENT
REHAB EXPENSE
$2,600,000 / 14.09%
WORKING CAPITAL
NEEDS$250 ,000 / 1 .36%
LEGAL & ACCOUNTING
$75,000 / 0 .41%
DUE DILIGENCE
$25,000 / 0 .14%
ACQUISITION FEES
$275,000 / 1 .49%
Description Amount Percentage
$13,605,750Debt financing raised 70.40%
Equity proceeds raised
13,000,000
5,450,000 29.60%
Proceeds available for investment $18,450,000 100.00%
Property purchase price 14,800,000 80.22%
Rehab Expense 2,600,000 14.09%
Working capital needs 250,000 1.36%
Legal & Accounting Expenses 75,000 0.41%
Loan Fees 247,000 1.34%
Due Diligence 25,000 0.14%
Acquisition fees 275,000 1.49%
Loan cap purchase 25,000 0.14%
Franchise fees 121,500 0.66%
Organization fees 31,500 0.17%
Total Application of Proceeds $18,450,000 100.00%
LOAN FEES
$247,000 / 1 .34%
ORGANIZATION
FEES
$31,500 / 0 .14%
SOURCESAND USES
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APPENDIX
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PROPERTYAFFILIATION &MANAGEMENT
p g . 2 6
AFFILIATION
MANAGEMENT
The Hol iday Inn DFW Airport Area West is part of Intercont inental
Hotel Group ( IHG) , one of the wor ld’s leading hotel companies. I t is
home to some of the wor ld’s most wel l -known hotel brands,
including Regent Hotels & Resorts , InterCont inental ® Hotels &
Resorts , K impton ® Hotels & Restaurants, Hotel Indigo ®, EVEN ®
Hotels , HUALUXE ® Hotels and Resorts , Crowne Plaza ® Hotels &
Resorts , voco™ hotels , Hol iday Inn ®, Hol iday Inn Express ®, Hol iday
Inn Club Vacat ions ®, Hol iday Inn Resort ®, av id™ hotels , Staybr idge
Suites ® and Candlewood Suites ®.
IHG supports each property around the globe by balancing
regional leadership with local , personal ized serv ice. IHG has
regional off ices in major markets around the wor ld, including our
g lobal headquarters in Denham, England, our Americas off ice in
At lanta, Georgia, and regional off ices in Singapore and Shanghai .
The Hol iday Inn DFW Airport Area West wi l l be managed by Aimbridge Hospital i ty,
the nat ion’s largest independent hotel investment and management f i rm with a
proven track record for del iver ing super ior returns for some of the most prest ig ious
hotel owners and developers across the United States.
Aimbridge operates across a fu l l spectrum of property types including resorts ,
f ranchise- branded, independent luxury, bout ique, and l i festy le hotels . They are a
h ighly resourced company that offers an unr ivaled track record of creat ing and
maximiz ing asset value and are the preferred management company for a l l of the
major hospital i ty brands.
In addit ion to Intercont inental Hotel Group propert ies, Aimbridge manages and owns
approximately 800 propert ies for 12 nat ional brand aff i l iat ions such as
Marr iot/Starwood Hotels and Resorts , Hi l ton, Hyatt, Wyndham, Choice Hotels ,
Car lson, and propert ies as wel l as 67 sub-brands.
Aimbridge Hospital i ty is based in Dal las, Texas, with addit ional off ices in Chicago
and Puerto Rico.
ACQUISITIONTIMELINE
1
October 12, 2018Contract Effect ive Date
2 43
November 6, 2018Loan Appl icat ion Submitted
December 28, 2018Funding Complete
November 20, 2018PPM Scheduled for Release
3
January 8, 2018Project Close Date
1 2 43 5
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PARTNERSHIPSTRUCTURE
Shareholder A
Shareholder B
Shareholder Z
Napali Hospitality One, LLC
Class A Shareholders;(80%)
EQUITY CLASSES
SINGLE PURPOSE ENTITYFOR PURCHASE
SHAREHOLDERS
Class B Shareholder;(20%)
Napal i Hospital i ty Group
Napal i Hospital i ty Group
Sawridge Capital
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PROPERTIES UNDERMANAGEMENT
MONTERREY APARTMENTS105 UNITS • FT. WORTH, TX
SOCIAL HOUSE77 UNITS • NACOGDOCHES, TX
THE RESIDENCES AT STONEBROOK100 UNITS • FOREST PARK, GA
RESIDENCES AT TOWNE CROSSING113 UNITS • Fayetteville, GA
WESTWOOD APARTMENTS187 UNITS • Dallas, TX
ADIRA APARTMENTS120 UNITS • DALLAS, TX
RESIDENCES AT PARC STATION160 UNITS • JONESBORO, GA
THE RESIDENCES AT MOUNTAIN LAKE284 UNITS • STONE MOUNTAIN, GA
GLOBE ENERGY SERVICESKILGORE, TX
ABBEY COURT APARTMENT HOMES176 UNITS • BELMONT, NC
p g . 2 9
9 5 0 E . S T A T E H I G H W A Y 1 1 4 S U I T E 1 6 0 S O U T H L A K E , T X 7 6 0 9 2 • N A P A L I C A P . C O M
Tim Black
Tim@napal icap.com
608.216.6638
Thomas Black, MD
Thomas@napal icap.com
903.931.3555
Drew Eldr idge, DO
Drew@napal icap.com
405.213.4041
A whol ly-owned company of
NAPALI CAPITAL, LLC