We acquire distressed and under-performing Hilton, Marriott, and other branded flag limited-service hotels, stabilize them through deskless operations, and exit via refinance at CMBS-grade stabilized value. Every dollar of return begins with disciplined entry.
The hotel must be a Hilton, Marriott, and other branded flag limited-service property, located in one of our target MSAs, exhibiting operational distress that can be remediated without structural intervention, and priced below replacement cost.
Our competitive moat is a repeatable, technology-led operating model. HotelKey PEP as the cloud-native PMS replaces legacy front-office systems; Virdee self-service kiosks remove dependency on 24/7 front-desk staffing. Both are configured and integrated by Allencrest Technology LLC.
40–60% reduction in front-desk labor versus legacy-flag operations, while improving guest satisfaction through frictionless arrival.
Fund I raises LP equity under Reg D 506(c); accredited-investor verification complete; first-close triggered upon target commitments.
LOIs, PSAs, and due diligence on target assets. Earnest money deposited. Property SPEs formed at close; debt placed.
PIP execution, technology deployment, revenue-management reset, staffing rebuild, brand compliance restoration.
CMBS or conventional refinance at 1.25–1.35x DSCR; LP capital returned, distributable cash split per waterfall; long-term hold or disposition.
LPs receive 100% of distributions until capital and the 9% preferred return are returned in full. The sponsor then earns a 30% interest in all remaining distributions through a cascading waterfall structure that ensures LP capital recovery and preferred return are prioritized.
| Tier | Description | LP Share | GP Share |
|---|---|---|---|
| 1. Return of Capital | LPs receive 100% of distributions until original capital contribution is returned in full. | 100% | 0% |
| 2. Preferred Return | LPs receive 100% until a 9% annualized non-compounding preferred return is received. | 100% | 0% |
| 3. GP Catch-Up | Distributions split 50/50 between GP and LP until GP receives a catch-up equal to 50% of cumulative preferred return paid to LPs. | 50% | 50% |
| 4. Residual Split | All remaining distributions split 70/30 between LP and GP for the balance of the fund term. | 70% | 30% |
Illustrative waterfall only. Final terms governed by the Fund’s Limited Partnership Agreement. Past performance and illustrative returns do not guarantee future results.
Accredited investors can request the Private Placement Memorandum, Limited Partnership Agreement, and Subscription Package directly.