Hotel Developer Launches Private Equity Offering for Texas Extended-Stay Hotel

Gatehouse Capital launches an offer on crowd street to fund its latest development, Round Rock Home2 Suites by Hilton®. The 119-key extended-stay hotel is being built directly across from Baylor Scott & White Hospital and less than a mile from the Texas State and Texas A&M medical college campuses.

The company completed a similar development across from Baylor Scott & White’s Dallas hospital campus (“Home2 Suites – Dallas”), which opened in the fourth quarter of 2017.

The developer has established a relationship with Baylor Scott & White, securing the hospital’s preferred supplier status. Many of the hotel’s guests included traveling hospital staff and family members of patients. Home2 Suites – Dallas sold a year before stabilization, earning LP investors an IRR of 20.4% and a multiple of 2.8x.

Gatehouse Capital plans to begin construction in June 2022 and complete the project in October 2023 to open two months later in December. The company expects the first stabilized year to begin in December 2025 for the third year of operation.

The Round Rock Home2 Suites by Hilton is the latest franchise available in the Round Rock market for an extended stay brand of Hilton Worldwide Holdings HLT.

Investment conditions: Offers to invest in the project are due May 20, 2022, with funds due no later than May 23, 2022. The target start date for distributions is in the second quarter of 2024.

  • Minimum investment: $25,000
  • Target investor IRR: 17%
  • Multiple of target equity: 1.8x
  • Target investment period: 4 years

The offering is offered through CrowdStreet’s private equity real estate investment platform.

Discover more private equity real estate investment offers on Benzinga’s alternative investment hub.

Photo: Courtesy of CrowdStreet

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