New Value-Add Hotel and Resort Investment Offering With 20% Target Annual Return

The real estate crowdfunding (view more investment offerings) platform CrowdStreet has announced a new offering for the Holiday Inn Resort Jekyll Island, a 158-key resort with several miles of pristine beaches, hiking trails and paved bike paths. The opportunity’s targeted internal rate of return (IRR) is 20%.

The deal sponsor is raising more than $16.8 million in equity to acquire the resort, which was renovated in 2014 for more than $16.8 million. The property has a daily average rate 19.8% above last year's levels and continues to increase, allowing the sponsor to offer investors an attractive return.

Investment highlights: Holiday Inn Resort Jekyll Island has 158 keys and is located on 7.091 acres in Georgia's Golden Isles. A beachfront pool, hot tub, fitness center, poolside food outlet, coffee shop, bike rentals and a playground are among the resort's attractions.

Despite being a barrier island, Jekyll Island is within a five-hour drive of cities with over 19 million people, including Atlanta; Tampa, Orlando and Jacksonville, Florida; Charlotte, North Carolina. Jekyll Island offers visitors 10 miles of public beaches, four golf courses, 25 miles of paved biking trails, the Georgia Sea Turtle Center, a water park, a tennis center and a 250-acre Historic landmark district to visit.

Investors can join the project by funding up to $15.1 million in exchange for membership interests in Jekyll Island Beachfront Hotel LLC, a Delaware-based company operated by deal sponsor New Castle Hotels & Resorts. The sponsor's goal is to buy, remodel, run and eventually sell the Holiday Inn Resort Jekyll Island. 

• Minimum investment: $25,000
• Target IRR: 20%
• Target annual cash yield: 13.7%
• Target equity multiple: 1.6x
• Target investment term: 3 years

View offering details on CrowdStreet

Deal sponsor: New Castle Hotels & Resorts, a hotel management and development firm with 15 hotels in its portfolio, including two on Jekyll Island, was established in 1980.

New Castle has shown its industry leadership throughout many economic cycles by maintaining outstanding revenue per available room (revPAR) indexes, operational margins and guest satisfaction rankings. As a result, New Castle has continuously been mentioned in the top 100 hotel management and development companies in the United States. In addition, the company has more than $674.1 million in total portfolio activity and over $311.2 million in assets under management. 

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Photo: Courtesy of CrowdStreet