Q&A from the Webinar:
Q. How can your end profit when you sell the hotel (after 3 years) be higher? Wouldn’t you have to do major renovations due to depreciation?
A. There are small improvements that have to be made in the properties when we acquire them, but since we acquired these hotels during COVID, the rebound of the hospitality market allows the value of the properties to grow exponentially.
Q. What sort of competition do you have now? Are new competitors coming into your market area?
A. We don’t have any competitors because our REIT is so unique. There is no other REIT in the nation that doesn’t own legacy assets — we are the only REIT whose entire portfolio was purchased after or during COVID.
Q. What happens upon sale of the asset? How much do investors receive?
A. Investor receive the entirety of their initial investment, plus a return of 26-30% from the profit of the sale.
Q. When you acquire a hotel do you retain the manager and staff?
A. It depends on the property, but we generally try to retain most of the old staff.
Q. Any ideas of purchasing any further properties?
A. Yes, we are looking to acquire 4-5 more properties.