New Hotel Development Offering With 31.6% Target Return

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

With the hospitality industry continuing its recovery, new hotel developments are offering strong potential returns. The newest offering on CrowdStreet’s real estate investment platform is for the development of a 120-key Marriott branded hotel in Miami, Florida, that’s providing a targeted investor return of 31.6%.

According to data by STR, hotel occupancy over Labor Day weekend this year was nearly the same as Labor Day weekend 2019 with occupancy at 77%. The Miami market even reported a 42.4% average daily rate increase this year over 2019.

Latest Offering: The offering is raising up to $8.63 million for the development of Moxy Wynwood, a 120-key Marriott International Inc MAR branded boutique hotel with a ground-floor signature restaurant, two-story lounge club and rooftop pool deck located in the popular Wynwood neighborhood in Miami.

The sponsor anticipates completed development to be delivered by May 2023 and plans to sell the property after two years of operation for a blended cap rate of 8.6%.

Investment Highlights: Miami remains one of the top tourist destinations for both domestic and international travelers and has experienced the highest hotel occupancy levels in the country. The Wynwood neighborhood has seen significant growth in development and the Moxy will be one of the neighborhood’s first hotels, providing a first-mover advantage in one of Miami’s most booming areas.

• Minimum Investment: $25,000
• Target Investor IRR: 31.6%
• Target Average Cash Yield: 27.4%
• Target Investment Period: 4 years

Deal Sponsor: The Moxy Miami offering is being sponsored by a 50/50 joint venture between Dolphin Capital Partners and Baywood Hotels, Inc.

Dolphin Capital Partners has invested over $1 billion in the past decade to acquire and develop land and numerous hotels in Europe and the Americas.

Baywood Hotels successfully owns and operates over 100 hotels across the U.S. and has extensive experience permitting, building and operating hotels in Miami.

How to Invest: Accredited investors can sign up on CrowdStreet to view more details on the investment offering, including financial projections, the subscription agreement and other due diligence documents. Offers to invest can then be submitted directly through the CrowdStreet Platform.

Photo: courtesy of CrowdStreet

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.