PROJECT Renovation y Upgrade La Quinta Inn & Suites Sebring
LQ UP PROGRAM - OBJECTIVES 1 2 3 Reposition to Upper-Midscale hotel Improve Guest Experience Increase occupancy from 66% - to 80%
IMPROVEMENT PLAN PIP Cost US$ 1,569,627 77 Rooms / Bathrooms / FF&E Lobby Meeting Spaces Exterior Finishes Fitness Center
LQ UP PROGRAM EXTERIOR
LQ UP PROGRAM INTERIOR Service03
LQ UP PROGRAM INTERIOR Service03
We will Elevate the property to LA QUINTA DEL SOL standards
LQ UP PROGRAM INTERIOR
LQ UP PROGRAM INTERIOR
ACTUAL IMAGES
PROPERTY S STRENGTHS Excelent Wyndham / La Quinta conditions Alliance 2 67% reservations systems Occupancy Rate Located 12 minutes from Race Track Hotel Operation with more than 35 years of experience High brand recall in the United States
Together, we will always achieve success.
PROPERTY S OPPORTUNITIES Climate conditions attract tourists from the Northern USA and Canada Advertising the property for Corporate Events. Outstanding promotion in reservation systems as a 100% renovated property
SEBRING THE CITY Located in the Heart of Florida
SEBRING THE CITY Home of Sebring International Raceway +200,000 visitors per year
SEBRING THE CITY Sebring Kart Racing
SEBRING Central Florida Orlando: 90 miles (2:00 hours) Tampa: 90 miles (1:45 hours) Sarasota 84 miles (1:30 hours) Ft Lauderdale: 130 miles (2:15 hours)
SEBRING Nearby Attractions Attractions within 15 minutes: Sebring International Raceway Highlands Hammock State Park Military Sea Services Museum Airboat Wildlife Adventures Lost Mines of Atlantis Avon Park Mowerplex SFSC Museum FL Art/Culture Lake Bonnet Village
SEBRING Tourism Close to important tourist destinations
DEMOGRAPHICS Median Age: 49.6 years Language Majority: English (81%) & Spanish (17.4%) Metropolitan Population: 101,200 Median Property Value: $120,300 Employment Growth Rate: 3.8% (2017) Gross Metropolitan Product: $2.6 Billion (2017) Major Industries: Recreation, Tourism, Education Cost of Living: 11% below National average Nearby Int l Airports: Transportation Centers: Air Travel: Rail Travel: Fort Myers, Tampa, Orlando Sebring Multimodal Logistics Center Sebring Regional Airport Avon Park Executive Airport CSX Transportation, Amtrak
BUSINESSES IN SEBRING Florida Hospital > 1,000 Employees Healthcare Highlands Regional Med Ctr 250-500 Employees Healthcare Palms-Sebring Healthcare Ctr 250-500 Employees Healthcare Agero 250-500 Employees Call Center Lykes Citrus Management 100-250 Employees Agribusiness Genpack LLC 100-250 Employees Food Manufacturing Turf Care Supply Corp 100-250 Employees Distribution Government Incentives to minimize costs for qualified import, export, manufacturing, and distribution. State Tax incentives to attract and retain business activity Top 30 Universities in Florida (2018): #3 USF (University of South Florida) #4 UCF (University of Central Florida) #14 Valencia College #21 University of Tampa #30 Florida Southern College
SEBRING MUSEUMS Military Sea & Service Museum
SEBRING SPORTS 14 Golf Clubs hosting US & Canada PGA events
SEBRING SPORTS 6 Shooting Ranges
DESCRIPTION OF THE ASSET Location: 4115 US 27 South, Sebring, FL 33870 Area: 4 acres Year of construction: 2008-2009 Category: Midscale hotel - 77 rooms 3 floors Amenities: Pool, Fitness center, Business center and Parking Hotel Operator: Liberty Group Hotels Occupancy Rate: 66.6% - last 12 months Average Daily Room Rate: US$105.29 - last 12 months NOI: US$ 823,364 Cost of the propiedad: US$ 7,250,000
DESCRIPTION OF THE ASSET Available Units for Sale: 49 Available Investment Amounts: US$100,000 US$4,900,000 Sources of Return: Preferred Interest 7% annually + Dividends from operation + Goodwill Valuation of the Asset Investment Duration: 5 years Exit Strategy: Cost of 6% Duration for Project Execution: 8 months to 1 year Investment backed by an asset in operation
CAPITAL STACK STRUCTURE Total Project Cost: $9.64 MM Wells Fargo Commercial Mortgage Trust $4.74 MM Riviera Point Class A $4.9 MM Equity Investors Class B Riviera Sebring, LLC
SOURCE OF FUNDS ORIGIN OF FUNDS SALE OF ASSETS INHERITANCE GIFTS DIVIDENDS BONDS Personal / Business accounts of the applicant Escrow Agent Riviera Sebring LLC
LA QUINTA SEBRING PROFORMA La Quinta Inn & Suites Sebring Project Summary TTM (5/31/2018) Property Price and Sources of Funds Room Count 77 Price $9,643,000 ADR $105.29 Loan $4,743,000 Occupancy 66.60% Rate 4.67% RevPAR $70.12 Years for Amortization 25 Pro Forma Summary Investment Opportunity Total Revenue $1,985,274 Equity $4,900,000 Total Expenses $1,161,910 EB-5 Money $0 Net Operating Income $823,364 Investor's Share for Distribution 49% Preferred Return 7.0% Project Cost and Capital Contribution Number of Rooms 77 Property/Land Cost $7,250,000 Property Improvement Plan GC Construction Plan $0 FF&E/Equipment Costs $1,426,934 Owner Contingencies 10% $142,693 Sale Summary Interest, Insurance, Property Tax Reserve $340,873 Disposition Price $16,453,664.58 Working Capital $100,000 Cost of Disposition 6% $987,219.87 Soft Cost Budget $232,500 Loan Payment (End Year 5) 4,178,913.12 Closing and Financing Costs $150,000 EB-5 Interest 0.00 EB-5 Financing Costs Repaid Equity $4,900,000.41 Total All-In-Basis $9,643,000 Total Sales Proceeds $6,387,531.17
LA QUINTA SEBRING PROFORMA La Quinta Inn & Suites Sebring Waterfall Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Cash Flow from Operations Net Operating Income $823,364 $848,169 $1,065,799 $1,208,747 $1,363,657 $1,531,462 FF&E Reserve 4% -$73,505 -$75,211 -$84,607 -$91,046 -$97,975 -$105,433 Debt Service ($321,875) ($321,875) ($321,875) ($321,875) ($321,875) ($321,875) Cash Flow from Operations $427,984 $451,084 $659,317 $795,827 $943,808 $1,104,155 Investor Summary Preferred Return $343,000 $343,000 $343,000 $343,000 $343,000 $343,000 Investor's Share for Distribution $41,642 $52,961 $154,995 $221,885 $294,396 $372,966 Sales Proceeds for Distrubution $3,129,890 Total Distribution to Investors $384,642 $395,961 $497,995 $564,885 $637,396 $3,845,856 Return On Investment (ROI) 8.08% 10.16% 11.53% 13.01% 78.49% Average ROI 24.25% Property Valuation Capitalization Rate 8.0% ######## $11,617,782 $14,465,048 $16,338,854 $18,368,802 $20,567,081 9.0% ######## $10,326,917 $12,857,821 $14,523,425 $16,327,824 $18,281,850 10.0% $9,027,746 $9,294,225 $11,572,039 $13,071,083 $14,695,042 $16,453,665
LA QUINTA SEBRING PROFORMA
WHY INVEST IN THIS PROJECT? Low Risk Investment 100% operational with great results Hotel Operator with experience Growth potential Hotel Flag with excellent Brand image Small Project that is easy to execute Minimal volatility in the real estate market Riviera Point s Know How
WHY INVEST IN THIS PROJECT? Immediate cash flow Above average ROI Tangible investment created before your eyes
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