The Resurgence of Niche Hotel Values: COVID-19 Impact on Current Value and Our Forecast for Recovery

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Q&A from the Webinar:

Q: Can I make more than 8% based on your operations?

A: Yes, you can! The 8% figure is the minimum preferred return. Upon sale of a hotel, in addition to special distributions, shareholders are entitled to a return of their gross investment amount, as well as an 8% per year cumulative—and then a 12% per year cumulative—non-compounded return on such gross investment amount.

Q: Can you please explain “growth”? What does that mean to me?

A: Real estate growth equates to appreciation of the underlying asset, which would be our hotels. Upon capital sale of the hotels upon completion of the offering, the hotels will be priced as an operating business in addition to real estate values at the time of sale. We are expecting growth through both the appreciation of the underlying asset value and the increases in operating income.

Q: How many hotels are in your programs?

A: In our current offering, we have a preferred interest in a business select hotel in Charlotte, North Carolina. Our previous offerings have 17 hotels.