Project Snapshot
- Project Aspen is a private credit acquisition financing for an established U.S. hospitality sponsor acquiring two highly profitable institutional hotel portfolios across the Midwest and Southern US.
- The transaction combines a proven operating platform with immediate integration, diversified branded exposure (Marriott, Hilton, IHG, Choice), and a clear path to operational margin expansion. Lenders enter day one into a stabilized, cash-flowing branded hotel portfolio with no encumbering management agreements and limited near-term CapEx exposure.
14
cash-flowing branded hotels
1,574
Pristine, modern keys
88%
Extended-stay model occupancy
42%
Extended-stay model NOI margin
16 – ‘25
Vintage
231
luxury condos
Investment Highlights
- Immediate Scale with Institutional-Quality Cash Flow: Day-one acquisition of ~$29.4MM in 2025E consolidated EBITDA across 14 branded hotels with stabilized operations. Existing infrastructure enables seamless integration, corporate efficiencies, and margin lift — not a development or turnaround story.
- Defensive Extended-Stay Economics: Portfolio anchored by premium extended-stay assets at ~88% occupancy and ~42% NOI margins, driven by long guest stays, structurally low staffing needs, and resilient regional demand. Recently delivered assets add NOI upside through stabilization and 7–9% targeted annual RevPAR growth.
- Modern, Diversified Institutional Asset Base: 1,574 keys built between 2016–2025 minimize near-term CapEx. Cross branded exposure across four major flag families validates the sponsor’s mid-market operating model and delivers durable cash flow resilience.
- Proven Sponsor with Frictionless Integration: Founder-led platform has delivered ~26% revenue CAGR from 2023A- 2025E while maintaining ~40% EBITDA margins. Target assets are unencumbered by management agreements, enabling seamless integration into the sponsor’s centralized operating platform with no transition friction, operator disputes, or buyout overhang.
- Robust Credit Profile & Financing Flexibility: Illustrative ~$100MM senior debt structure produces ~2.1x pro forma DSCR, providing substantial downside protection. Flexible across property-level or HoldCo financing, with senior, unitranche, or structured solutions — underwriting already validated by an in-place institutional term sheet.
Financial Snapshots & The offers
$$150–$200M
AUM through acquisitions
$68.1M
2025E Consolidated Revenue
$29.4M
2025E Consolidated EBITDA
7-9%
Annual RevPAR growth
2.1x
Pro Forma Consolidated DSCR
5.2x
Proforma Leverage on EBITDA
- Financing Sought: $100MM–$200MM acquisition financing with flexibility across senior, unitranche, or structured private credit — including upsize capacity through structured tranches.
- Market-Validated Capital Structure: Reference terms supported by an in-place ~$149MM senior term sheet at ~62.5% LTV, alongside ~$80–$90MM sponsor equity, establishing a clear institutional pricing and leverage benchmark.
- Sponsor Alignment: Founder-led operating platform with meaningful sponsor equity participation and potential rollover alignment.
- Downside Protection: >2.0x DSCR supported by diversified branded cash flows, modern institutional-quality collateral, and unencumbered operations enabling full operational control and seamless integration.