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Hospitality Developmental Fund, LLC
An Offering for Accredited Investors
Offering Closes to new investors
October 31st, 2023
About
Us
Hospitality Developmental Fund, LLC is a Regulation D 506 (c) offering that intends to make investments in undeveloped and developed hospitality-related real estate projects concentrated in high growth areas of the US. The Fund will identify suitable properties for development as well as existing facilities for repositioning. The Fund may also loan money to our associates for multiple phases of development, or to aid in the purchase of existing income-producing properties.
Our management team and its affiliates have decades of combined experience in due diligence, retail sales, and underwriting for various types of securitized real estate offerings, and our associates have developed, owned and operated billions worth of hospitality properties.
The Fund invests in projects that are contracted with highly respected brand names. Our selected operators and contractors are well established and have proven positive track records throughout multiple market cycles.
Our investors will receive benefits associated with hospitality real estate ownership through high quality professional management, without the hassle of being responsible for daily operations, and the worry of any form of unforeseen recourse.
Offering Highlights:
Target Equity Raise:
$20,000,000
Minimum Investment Amount:
$10,000 Unit / 5 Unit Minimum
($50,000)
Fund Life:
6-7 Years
Mission:
Develop, purchase, reposition, or loan money to hospitality-related projects.
Distribution:
The Fund will pay Unit Holders all entitled cash distributions generated by income-producing properties as approved by the Manager. The Fund anticipates to have a mix of development projects and stabilized income-producing properties. The Fund may have multiple liquidity events throughout its life that will consist of return of initial capital and capital gains. Upon the disposition of properties, whether be the entire portfolio or part, the Fund will first pay Unit Holders a cumulative preferred return of 8%, plus 85% of all remaining gains produced. Management anticipates a tax efficient 6 -7% yield throughout the life of the Fund, with a 12 - 15% average annualized total return. *
*There are no guarantees that theses results can be achieved. Actual earnings could be higher or lower based on interest rate environment and real estate market conditions.
Current Projects
Sonesta Simply Suites
Port Charlotte, FL
New Construction - Fully Funded
Hyatt Place at The Forum
Ft. Myers, Florida
Managing Board
Hospitality Developmental Fund, LLC is managed by Veterans Real Estate Consulting Group, LLC and its Board of Directors.
Alan T. Lane - Officer and Chairman
Alan serves as Managing Director of the Fund, and Chairman. Alan also serves as Co-Manager of Hospitality Portfolio Management, LLC.
Sue A. Howell - Chief Operating Officer
Sue serves as COO of the Fund, and Board Member.
Advisory Board
Paul Stanton
Paul serves as Advisory Board Member. He is currently Vice President of Commonwealth Hotels, a full service hotel management company that successfully operates a wide variety of premium hotel brands nationally. Commonwealth has over 2,100 employees, and manages approximately $2 billion in assets. Paul is also Co-Manager of Hospitality Portfolio Management, a vertically integrated real estate investment, development, construction and management company. Paul has over 25 years experience in Hospitality & Development for International operations, including Disney, Hilton, Marriott, and Choice Brands.
.
Brian Fry
Brian serves as Advisory Board Member. He is currently the President of Commonwealth Hotels, and is a member of Hospitality Portfolio Management. He contributed to the success of Hilton Hotels Corporation, GE Capital, and Winston Hotels with over 30 years of
experience in all facets of the hospitality business in the areas of development, finance, and operations.
Hospitality Developmental Fund, LLC
The projects depicted are proposed to be Fund investments depending upon the amount of capital raised. The Fund may invest in some or all of these projects, or other projects not depicted in this website.
The Fund has a collaborative association with Hospitality Portfolio Management and Commonwealth Hotels to identify hotel properties that they believe will provide positive returns to members of the ownership group, including the Fund.
The properties identified will be owned by a special-purpose vehicle entity (“SPV”), that would typically include the Fund in a minority equity position. (Alternatively, the Fund may be a secured lender to the SPV if the Manager deems that position to be preferable.) THG or an affiliate would typically provide the substantial portion of funds required for the acquisition and be in a majority position. Commonwealth would be engaged to provide management services under a standard industry contract.
The Fund is not obligated to participate in any possible acquisition proposed to it by THG, nor is THG obligated to present any possible venture to the Fund for investment. The Manager may also identify opportunities for acquisition or development and propose those to THG and Commonwealth as collaboration possibilities.
This does not constitute an offer to buy or sell any security. Securities may be offered only through a Private Placement Memorandum (the "PPM"). Investments in securities are not suitable for all investors. Investment in this or any security may involve a high degree of risk and investors should review all “Risk Factors” in the PPM before investing. In addition, investors should perform their own due diligence before considering any investment. Neither the Securities and Exchange Commission nor any other state or federal regulatory agency has reviewed this offering or passed upon the merits of or given its approval to any securities offered or the terms of this offering. Past performance and/or forward looking statements are never an assurance of future results. Investments in real estate are subject to known and unknown risks, uncertainties and other factors, and should be considered only by sophisticated investors who can bear the economic risk of their investment for an indefinite period and who can afford to sustain a total loss of their investment.
© 2023 by Hospitality Developmental Fund, LLC. All rights reserved.