Hotel Developer Launching Private Equity Investment Offering For Extended-Stay Hotel In Texas

Gatehouse Capital is launching an offering on CrowdStreet to fund its latest development, Round Rock Home2 Suites by Hilton®. The 119-key extended-stay hotel is being built directly across from the Baylor Scott & White Hospital and within a mile of the medically focused college campuses of Texas State and Texas A&M.

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

The developer established a relationship with Baylor Scott & White, securing the hospital’s preferred provider status. Many of the hotel guests included traveling hospital staff and patient family members. The Home2 Suites – Dallas sold a year prior to stabilization, netting LP investors a 20.4% IRR and a 2.8x equity multiple.

Gatehouse Capital expects to begin construction in June 2022 and have the project completed 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 last franchise available in the Round Rock market for an extended-stay brand from Hilton Worldwide Holdings HLT.

Investment Terms: Offers to invest in the project are due May 20, 2022, with funds due by May 23, 2022. The target start date for distributions is in the second quarter of 2024.

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

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

Discover more private equity real estate investment offerings on Benzinga’s Alternative Investments Hub.

Photo: Courtesy of CrowdStreet