American Hospitality
Properties REIT, Inc.
DIVIDENDS will be paid on 6/15 to those investors of record on 5/31.

We have PAID our Investors an annualized 12.7% distribution for the six (6) months ending 3/31/22. As a REIT we are required to distribute our profits.

IMPORTANT INVESTOR INFORMATION:

5/20: It is the ability for hotels to rebound during times of economic downturn, and the specificities of today’s landscape that make this a prime time, especially for name-brand business select hotels. Simply put, business people, travel sports teams, and families are planning summer (and beyond) travel.

Additionally, hotels are in a particularly prime position to fight inflation, due to their ability to adjust room rates. If demand due to the great travel resurgence of 2022 increases, the industry should be well-positioned to execute pricing power to offset inflationary costs. Hotels can price rooms continuously in response to occupancy levels.

5/13: We are hosting a FREE webinar entitled “Hosting America’s Business: The Phoenix American Hospitality Story” coming up Wednesday May 18th, 12PM EST / 9AM PST. Here our President and CEO Perch Nelson will talk about how we arrived at our 7th offering, how we made hotel investments open to all, and how our process and experience improves the properties we acquire. At the end of the event we will have an open Q&A session, where we will take any questions you have about our business or how to invest. Register here: https://us06web.zoom.us/webinar/register/WN_l1aNRhXSS3GVs1LJFbXGHw

5/10: Americans are finally planning their summer vacations and travel is way up, but, according to Barron’s, that doesn’t seem to be helping investors in travel related stocks right now.

Many of the publicly traded companies they are talking about are reporting improved performance. However, when dealing with stocks, ongoing turbulence in the market itself can take good news and still cause losses for investors.

While major public companies, such as airlines and hotel chains, are subject to volatility in the stock market, at Phoenix our business model is already distributing (each month) returns higher than our target.

5/6: If you’ve been following our updates, you know that we have been aiming to distribute an 8% annualized dividend (paid monthly), plus growth, from our REIT. We are proud to say that we have met and exceeded our goal! We have paid our investors a 12.7% annualized distribution for the six-month period ending March 31st, 2022.

4/30: Saturday, April 30th, is the last day to invest and to be eligible to receive your May 15th distribution– and it is enhanced in two ways.

1) Due to better than expected operating results as our hotel resurgence accelerated in April, we have a 10% distribution for May. This is well over the 8% preferred rate.
2)Bonus shares! We are changing the program in May, lock yours in by investing by 4/30.

4/26: Join us for our webinar “Benefiting from the Travel Rebound - Learning From the Past: What Historical Performance Predicts for Business Select Hotels” Wednesday, April 27th at 12PM EST / 9AM PST. Register here: https://us06web.zoom.us/webinar/register/WN_-Nxjt3TtSz6ZI3KYwe190A

Our next cash dividend will be payable on 5/15 to investors of record on 4/30 (get in fast). This comes as part of our planned series of distributions from American Hospitality Properties REIT, Inc., which aims to pay investors monthly an annualized 8% preferred return.

The dividend does not include any capital appreciation..

4/23: Phoenix is looking to be a more secure and profitable investment than traditional bond Fund ETFs. 98% of the 503 bond ETFs are currently running at negative returns in 2022, according to Bloomberg. Rising inflation is having a negative impact on bonds, with the largest bond-exchange traded funds recently hitting new lows. Financial advisors are steering investors into other options such as dividend-oriented strategies, commodities, and some of the larger advisors are steering their clients into the realm of what the wealthiest invest in, real estate.

4/19: Special note: We just paid another monthly dividend (on 4/15) to shareholders of record as of 3/31/22 and will again to everyone who invests by 4/30 (on 5/15).

Need more information to decide to invest?
Join us for a complimentary webinar April 27th 12pm EST / 9am PST to learn why hotels have been a particularly resilient investment through periods of economic downturn. Learn why we believe that the decline in travel during the COVID-19 pandemic is a potential indicator to a stronger opportunity—potentially experiencing unusually strong returns for our investors in this, our seventh fund. Questions are encouraged—we’ll be holding an interactive Q&A near the end of the session!


4/16: On Wednesday, April 27th at 12:00pm EST / 9:00am PST Phoenix American Hospitality (PAH) will be hosting our fifth FREE webinar. At this virtual event we will be discussing the history of hotel valuations, their downturns and rapid recovery.

We’ll also share our plan to use our decades of experience owning AND operating hotels to optimize operations, increase value, and if all goes according to plan, sell within 3-5 years to the benefit of our investors. We take hotels that may be under-managed and go about improving their cash flow through active management. Keep in mind that we are in the “travel recovery of 2022!” We have already purchased three hotels and, as we raise capital swiftly, will purchase more soon.


4/12: Phoenix American Hospitality recently announced $4 million in improvements to its 17th acquisition, Marriott Cape Canaveral Cocoa Beach.

How’s that for active management (instead of passive ownership)? With all the strides our REIT’s been making lately, you may be wondering, isn’t travel still down? Aren’t we still in a global pandemic, pushing hotel valuations down? Well, our answer to these questions is, “All the more reason to get invested with Phoenix,” and to explain that, we’ve uploaded a new video to our YouTube channel. If you have the time (and it’s not even two minutes long), we recommend giving it a watch.

4/09: Here’s a question we get a lot:
“How much do I need to invest to earn $500 every month?”

We have been paying an 8% annualized rate. Now, we pay distributions every month, so that’s 1/12th of 8%. Doing the math, to receive $500 each month, you’d need to have made a $75,000 investment (and potentially less, if you act soon and take advantage of our limited bonus shares offer).

4/02: From the start, being open to everyone—not just the most elite class of investors—has been at the heart of this offering, and that’s never going to change. We’re committed to letting nearly everyone participate, especially now with the travel industry comeback of 2022 (did you see this week’s jobs report?) in hotel real estate investing. That’s why we’re pleased to introduce a few options to make the process even easier.

To start, we’ve created a simple subscription “add-on” form for existing investors. If you’ve already invested in PAH, and your information hasn’t changed, you can use this form to add onto your original investment—without the sign-up hassles.

In a similar vein, we created the option of setting up automatic contributions to your account, so you can increase your investment without having to move a muscle. This is a great way to rack up bonus shares while they’re still available.

3/21: We acquired a preferred interest in two new hotels—the Hilton Garden Inn and Hilton Homewood Suites! This marks AHP REIT's second transaction, bringing its total to 3 hotels owned and operated. Both located in Indiana, these properties are prime examples of this offering’s focus on Premium Business Select Hotels. We’re renovating them in a big way (think new carpeting, wall coverings, beds, bathroom fixtures, and more), and we’re confident that these changes will improve their cash flow and put more money in our investors’ pockets.

3/12: We launched a new video series highlighting some of the most frequently asked questions from our past webinars. If you’re short on time, this is a great way to get the most essential details of our seventh offering. Find them on our YouTube channel here: https://www.youtube.com/channel/UCrTUaeuWXGt7ErByCy0K9VA

3/5: We made a new video to showcase, from beginning to end, exactly how we put money in your pocket by improving the cash flow of our hotels. This video can be found right on our YouTube channel, which we created just for the occasion and have already loaded up with all of our past webinars. Be sure to subscribe for alerts of new uploads!

Watch now: https://www.youtube.com/watch?v=C50fIJw-wgg

1/28: We launched a new system of bonus shares! Now, and for a limited time only, those who invest $1,000 or more into this offering will receive additional shares at no extra cost. To learn more, open the chat in the bottom-right corner and a certified Phoenix American Hospitality employee will speak with you directly.

12/9: Hotel occupancy in the U.S. is now hovering around an impressive mid-50%—closer than ever to 2019 pre-pandemic levels. In fact, Los Angeles has matched its stats for the comparable week in 2019. Of course, revenue follows: the country is now only 9.2% away from pre-COVID levels of revenue per available room! For the whole report, go to “STR: US Weekly Hotel Occupancy Hovers Around Mid-50%” on CoStar.

11/23: The Motley Fool wrote a compelling piece on why now may be the right time to invest in hotels. Among the evidence cited is a AAA forecast that 53.4 million Americans will leave their homes for Thanksgiving travel (a 13% increase from 2020, and only 5% below 2019) and that as many as 42% of Americans (and 53% high-income Americans) plan to travel for the holidays. Naturally, they’ll be looking for places to stay—that’s where we come in. You can read the full argument in “Why Investing in Hotels Is a Good Idea Right Now” on The Motley Fool.

11/11: New data from STR revealed demand for U.S. hotels has surged nearly all the way back to pre-pandemic levels. Hilton CEO Christopher Nassetta expects not only that the trend will continue through the new year, but that hotel revenue in 2022 will surpass the peak of 2019. For the full story, check out “Hotel CEOs predict record numbers for 2022” on Hospitality Net.

11/3: Marriott’s Q3 2021 report showed a remarkable 118.4% year-over-year increase in revenue per available room. Their CFO cited stronger travel rates as a contributor, and noted particularly good improvement in special corporate business. Great news for investors of Phoenix’s 7th offering, which specializes in Business Select Hotels! To read the details, visit “Marriott Q3 RevPAR up 118.$ year over year” on Hotel Management.

10/28: Travel rose from 48% of pre-pandemic levels in Q2 to 72% through September, driving a rebound in revenue for Mastercard. As more people leave the house, we’re providing them a place to stay. For more on this important development for our industry, find “With Domestic and Cross-Border Spending Up, Mastercard Looks to Rebound in Travel” on PYMNTS.com.

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Please read the Offering Circular before investing.

Returns are not guaranteed, and there is no guarantee that objectives will be met.
Properties shown on this page are not owned by PAH and are representative of the types of properties expected to be acquired by the company.

OUR SIMPLE SUMMARY

Summary images

Buy Premium Business Select Hotels now, while they’re at COVID-depressed prices. Make money by better managing the properties (we are experienced owner operators, we are not just real estate people) while the nation comes out of this mess.

Share the profits with our investors, you get paid first, monthly, until you reach a minimum annual 8% return (notice we did say minimum, it could be more).

Sell the hotels (estimated within 3-5 years) at higher prices when they have reached “full market value” and buyers are plentiful.

We share those profits as well, targeting more than a 20% annualized return which is actually lower than our previous offering (we hope to beat them with this one).

That means, if all goes according to plan, you'll receive monthly dividends, your initial investment, plus growth.

Of course, we could be wrong, the pandemic could last forever, but we do not believe it will. We want you to be in the right position with us as it ends.

Please read on, watch our video, download the deck and read about this niche hotel REIT, our experience, and the details of this offering.

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Offering Circular

ABOUT US

Many investors are seeking monthly income (and growth along with it).

As an asset class, real estate offers a number of compelling benefits, including regular income, capital appreciation (growth of your original investment) potential, and diversification, but not all parts of the real estate market perform alike. Now, as the economy emerges from COVID-19 and growth heats up, hotels—and particularly business select hotels—may offer some of the strongest growth potential of any real estate sector.

Up to now, all the benefits of hotel real estate investing—including capital preservation, income, and long-term capital appreciation—have primarily been available to institutions and very wealthy people through private investment partnerships and private equity real estate funds with large minimums.

American Hospitality Properties REIT, Inc. should know—that’s how we ran our first few funds.

Now, this opportunity is open to everyone!

Our goal is to offer investors the opportunity to invest in professionally managed, focused commercial real estate with an institutionally experienced manager. We aim to provide substantial income, reduce your overall portfolio volatility (and spread your dollars across several investments in the sector), diversify risk (via capital preservation by investing in a “real” asset), and contribute to your mid-term growth (within five years).

Returns are not guaranteed, and there is no guarantee that objectives will be met.

Here’s what you need to know to understand if this is for you:

Why Phoenix

Why consider American Hospitality Properties REIT, Inc.?

Our goal is an 8% preferred return. We’ve already beaten it:

We have already distributed to our Investors an annualized 12.7% return for the six (6) months ending 3/31/22. Why the difference? As a REIT we are required to distribute 90% of our profits. The 8% is our asurance of a “preferred return,” meaning you get paid first. We we will not receive compensation until that return is met.

We are expecting higher monthly returns riding the travel rebound of 2022.

As in all investments, returns are not guaranteed, and there is no assurance that objectives will be met.

Strong growth potential:

In addition to planned monthly distributions, investors are scheduled to share in the profits (if all goes according to plan) of hotel values. We aim to sell our hotels in 3-4 years at full market rates, reflecting the value we bring from buying at COVID-reduced rates, and from our improvements to operations and facilities.

Our goal is to achieve a strong IRR (internal rate of return), including both distributions and growth, for our investors. Our investors earn 100% of the first 8% of returns. When—and only when—we outperform this hurdle, we begin to share in the profits.

Since we only get paid after our investors have made the first 8%, we sit on the same side of the table as you. This means that we have every incentive to increase profits. Not only that, we are personally invested in this REIT with the exact same terms as you.

All three of our prior offerings have exceeded their target returns. Please reach out to us for full details.

Profit Distribution

Returns 8% 8-12% 12%+
Investors Receive 100% 80% 60%+

Our goal: return of capital within 3-5 years:

Based on the current environment, Phoenix expects to liquidate its investments (sell hotels) within three to five years. There is no reinvestment of capital. Assuming we meet our time horizon goal, investors can expect to receive their initial investment, plus or minus appreciation, within five years.

There is no guarantee that this objective will be met.

The same opportunities that institutions and wealthy families have long enjoyed:

The world’s wealthiest, most sophisticated investors have always had access to top-quality, professionally managed commercial real estate investments in this high-potential sector of the market. Now you can invest in real estate too without all the wealth requirements.

Open to ALL investors:

Our Reg A+ offering empowers investors of all income levels and portfolio sizes to invest, subject to certain dollar amount limitations on common stock that may be acquired (as described in the Offering Circular). You do not have to meet accreditation hurdles to qualify.

OUR SEC-QUALIFIED OFFERING

OFFERING SIZE

$50 million

OFFERING TEAM
BROKER DEALER

Rialto Group

LAW FIRM

Winston & Strawn LLP

TRANSFER AGENT

KoreConX

AUDITOR

Bodden, PC

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Who should consider American Hospitality Properties REIT, Inc.?

  • Investors who are seeking income and appreciation potential
  • Investors looking for a hedge against inflation
  • Investors who can afford to tie up capital for three to five years
  • Investors with self-directed IRAs (or you can open one with our partner!)
THE PHOENIX ADVANTAGE

SPECIALIZED EXPERTISE, HANDS-ON KNOWLEDGE, DECADES OF EXPERIENCE, AND 100% FOCUS.

Here are seven reasons to choose Phoenix when you take advantage of this focused hotel opportunity.

This isn’t our first rodeo

Phoenix has been successfully and profitably investing in the hotel sector since 2009, through good markets and bad. Our current fund offering is our firm’s fourth—and all three previous funds met or exceeded investor expectations for income and capital appreciation. Beyond that, our team boasts decades of experience in the hotel business.

hotel

We’re owners AND operators

Most hospitality acquisition firms focus on acquisition and outsource management, investing up and down the full-service continuum with varied fixed and variable costs.

Phoenix focuses on strongly branded (e.g. Marriott, Hilton, and Hyatt) business select hotels. For Phoenix, these hotels aren’t just real estate investments—they’re investments in operational effectiveness. We aim to take well-running properties to the next level in terms of revenue generation, quality, association engagement, and ownership returns.

We know what makes hotel investments successful

Our investment process identifies what we believe to be the properties with the highest potential for success by focusing on six key characteristics:

  • Strong national brands: We invest in names you know, like Hilton, Hyatt, and Marriott.
  • Proven performance: We seek out properties that are already making money, with strong, positive cash flow.
  • Market leadership: We look for hotels that are outperforming their competition.
  • Location: Our focus is on urban markets with a business travel focus.
  • Multiple revenue sources: We look for hotels with occupants looking to be near businesses, hospitals, and colleges, to name a few of the types of frequent guests we seek.
  • Price: We purchase properties priced below what a new hotel would cost.
hotel

We focus on one of the most resilient segments of the hotel market

Even within the hotel sector, some properties are better positioned than others. The three main hotel types are luxury, business select, and budget. Business select hotels provide more amenities than budget hotels. They will typically offer small meeting spaces and a limited-service restaurant. They offer fewer amenities than luxury properties. You typically won’t find a concierge, a bellhop, a spa, or room service at a business select property.

Business select hotels appeal to a broad array of customers, including road-warrior and regional business travelers, small business owners, and middle-class leisure travelers, who are primarily making domestic trips. These properties are attractive in nearly all market climates, offering the highest operating and profit margins in the industry, but they are especially resilient during downturns. This middle category experienced less of a drop-off in demand during the pandemic crisis, and it’s expected to rebound more rapidly than budget hotels.

We can put money to work immediately

We are continually evaluating new properties that meet our criteria, and because we are in the thick of hotel industry deal flow, we can put new money to work quickly—often within 30 days. That allows our team to take advantage of fast-moving opportunities in changing markets.

We understand how to boost performance

We buy good properties and make them great, increasing profitability through cost-cutting (not just labor), dynamic pricing, property upgrades, and targeted sales campaigns. The proof is in our results: since the global pandemic began, the Phoenix portfolio has consistently surpassed those of competing hotel investment sponsors. In arguably the worst period in American hotel history—the COVID-19 crisis—we outperformed our peers each and every month, without fail.

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In 2020, we continued to pay distributions—even in the most challenging markets

As the COVID-19 pandemic swept through the travel business, several hotel-focused investment funds immediately suspended distributions. Phoenix has been able to pay distributions in four of the last six periods to date, including at year-end 2020, because of our commitment to shareholders and our focus on reducing risk. We manage risk through a variety of mechanisms:

  • Purchasing already-performing hotels at prices below replacement value
  • Investing in the relatively resilient business select sector rather than in luxury or budget
  • Maintaining reserves for adverse circumstances
  • Avoiding investment in America’s largest cities, which suffered the biggest losses during COVID-19

Past performance is no guarantee of future returns.

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Offering Circular

DOWNLOAD OUR INVESTMENT GUIDE

Invest alongside major institutions in one of commercial real estate’s most compelling sectors: Business Select Hotels.

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Properties shown are not owned by PAH and are representative of the types of properties expected to be acquired by the company.
PRESS

PHOENIX FUNDS IN THE MEDIA

Our innovative strategy has attracted the financial media’s attention. Here’s recent news coverage of Phoenix Funds.

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PRICES ARE STILL ATTRACTIVE —
THE TIME TO INVEST IS NOW

The pandemic depressed hotel prices across the board, creating some attractive investment opportunities for agile investors. But as travel resumes, values will almost surely rise. We believe that we are now facing a major opportunity, where lower-than-usual prices converge with the potential for extraordinary growth. But the time to invest is now—and now, through Phoenix American Hospitality, that opportunity is available to investors of all types and account sizes.

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Offering Circular