HOTELS investment opportunity
GROWABILITY EQUITY HOTEL FUND

Don’t miss this NEW INVESTMENT OPPORTUNITY – a hotel fund to contain 4 to 5 high-cash-flow select service branded properties targeted to business travelers!

– GrowAbility Equity Hotel Fund –

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HOTELS ALREADY PURCHASED

These properties near Fort Knox, KY – closed in November 2023 – deliver perfectly on our acquisition strategy. They are performing well and cash flowing as projected north of 9% annualized.  Initial distributions are projected to start Second Quarter, 2024.

GROWABILITY EQUITY HOTEL FUND EXECUTIVE SUMMARY

GrowAbility Equity Hotel Fund is a direct result of our conversations with some of you regarding your investing goals.

As we continually evolve our investing thesis based on market shifts, our own investing experience, and the feedback from some of you that cash flow is a top priority, we decided to collaborate with strategic partner and successful real estate operator, GoodEgg Investments, to offer our investors access to their Hotel Fund. And because of our relationship with GoodEgg, we’ve been able to negotiate better returns for you!

The GrowAbility Equity Hotel Fund gives you an opportunity to diversify outside of multifamily and bolster your overall portfolio with strong cash-flowing assets.

Given the pent-up demand for travel post COVID-19, both business and leisure travel have rebounded in a big way, leading to huge opportunities in hotel investments.

With the outstanding performance and strong cash flow of the hotel assets we’ve acquired to date, we are bullish on the hotel sector and anticipate tremendous opportunities in the coming months and years.

GrowAbility Equity Hotel Fund is uniquely positioned to take advantage of those opportunities.

Select-Service Hotel

GrowAbility Equity Hotel Fund will be on select-service hotels, which allow us to maximize efficiencies while also offering key amenities all focused on business travelers.

Even throughout the pandemic, select-service hotels have continued to see strong and growing demand, and we anticipate that demand will continue to rise in coming years.

Why Select-Service Hotels

  • Low Operational Expenses
  • Ideal Locations with Easy Access
  • Geared Toward Business Travelers
  • Consistent Occupancy and High ADR (Average Daily Rate)
  • Strong and Growing Demand

How We Will Maximize Value

  • Post Construction
  • Franchise Renewal
  • Expense Optimization
  • Strategic Improvements

Acquisition Strategy

  • Assets – Our Hotel Fund is targeting class A and B hotel assets, built in 1990 or newer, which are producing strong cash flow as-is, yet give us opportunity to add value.
  • Brand – Our Hotel Fund plans to acquire hotel assets under nationally recognized market leader brands, including some of the brands you see here.

GROWABILITY EQUITY HOTEL FUND Q&A WEBINAR RECORDING

READY TO INVEST?

If you’re an accredited investor*, click the button below to invest now!

*Being an accredited investor means that you:

Have an income of at least $200,000 as a single person or at least $300,000 as a couple, or;

Have net worth above $1 million, excluding your principal residence.

*Being an accredited investor means that you:

Have an income of at least $200,000 as a single person or at least $300,000 as a couple, or;

Have net worth above $1 million, excluding your principal residence.

FREQUENTLY ASKED QUESTIONS

Why invest in a fund versus individual assets?

The Fund structure allows you to maximize returns while spreading equity across multiple assets, thus giving peace of mind by mitigating your overall risk.

Rather than a single-asset syndication where your capital is invested in a single property in a single location, GrowAbility Equity Hotel Fund will be spread across multiple hotel assets, markets, asset classes, and business plans, thus providing built-in diversification and decreasing volatility.

You still get the tax benefits of bonus depreciation from individual assets within GrowAbility Equity Hotel Fund in the same way that you would expect from a single-asset syndication.

You are able to simplify your investment process by signing a single PPM and wiring your funds just one time. In addition, you’ll get one consolidated K-1 instead of chasing down multiple documents each year.

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How can you be sure that you will be able to find assets to buy?

There is significant sales activity for select-service hotels, and our operating partner GoodEgg has strong connections within the hotel industry that have led to a promising pipeline of potential acquisitions.

On top of that, the structure of the GoodEgg Hotel Fund – in which you are invested through the  GrowAbility Equity Hotel Fund – puts us in a significantly stronger position to compete for properties without having to raise capital for each acquisition, and we are in a very strong position to deploy all capital in a relatively short period of time.

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Who will be the interested buyer(s) for assets within the fund after the hold period?

As with prior investments, there are two types of buyers who will be attracted to the assets in the GrowAbility Equity Hotel Fund assets after the hold period and once we execute on the business plan – (1) other private syndication groups like ours and (2) institutional buyers.

Having multiple exit strategies and multiple potential buyer groups in mind from the start of the project means that we know exactly what our end goal is and thus can execute on the business plan efficiently.  Further, it gives us maximum flexibility while minimizing risk.

It is important to note that the fund structure provides maximum flexibility in how to ultimately sell the assets. We will have the ability to pool the assets together in one portfolio sale, but we can also sell each individually if market dynamics would create a higher return for our investors.

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How does GrowAbility Equity Hotel Fund compare to other investment offerings?

The general investment structure for each investor is very similar to that of previous offerings. As an investor, you can expect to receive a preferred return plus a percentage share of cash flow going forward for the overall fund.

The primary distinction is that the multiple hotel assets in the GrowAbility Equity Hotel Fund will be diversified over different markets. This serves to limit the downside risk of individual asset performance while providing upside potential if overall operations across all assets are above expectations.
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What type of financing are we getting on GrowAbility Equity Hotel Fund?

Financing will be secured for each asset individually. In general, the business plan will include a relatively small amount of capital expenditure while creating added value to increase the overall income potential and thus the overall asset value.
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How confident are you that you’ll be able to execute on the business plan for each asset?

We are extremely confident in the value-add potential of the assets that we are acquiring. Further, we have a variety of business plans we are targeting, including:

  • Stabilization and increasing occupancy for new hotels
  • Expense optimization
  • Franchise renewal
  • Strategic improvements and renovations

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Is this investment eligible for 1031 exchange?

No. This investment is not set up to take funds from a 1031 exchange.

That being said, if you are currently in the middle of a 1031 exchange and looking to place your funds, please let us know, and we can help point you in the right direction.

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What is the expected depreciation on this deal?

Each investor will receive their proportionate share of the total depreciation (and bonus depreciation) of all assets held within the fund.

Through the use of cost segregation, we will determine the applicable accelerated depreciation for each asset within the fund and will share those numbers and projections with each acquisition.

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How much is the GP investing in the deal?

The parties in the GP are investing a significant amount of their own capital into GrowAbility Equity Hotel Fund.

This creates an alignment of interest between LPs and GPs, and on top of that, we’re investing because we strongly believe in the overall opportunity.
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What is the closing date for GrowAbility Equity Hotel Fund?

The underlying fund in which GrowAbility Equity Hotel Fund is invested will have multiple asset closings until all committed capital has been deployed.
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Will distributions take place on a monthly or quarterly basis, and when will they start?

Distributions will be quarterly for all classes.

Distributions for all classes will begin only after the closing of the fund, and more specifics around timing will be shared once the fund closes.
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What type of communication will take place with investors throughout this investment?

As soon as your investment is approved, you’ll receive confirmation of your investment.

We will keep you in the loop as we identify and move through the acquisition process for each asset in the fund.

Once we close on each asset, you’ll hear from us immediately. We will continue to communicate with each subsequent closing within the fund.

After the fund closes, you can expect to receive monthly updates from us, along with quarterly financials for all assets held within the fund.
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Who will be the investor’s main point of contact throughout the investment period?

If you have any questions now or throughout the life of the project, please call / text us at (954) 716-7940, or you can email our Investor Relations team at InvestorRelations@GrowAbilityEquity.com.

READY TO INVEST?

If you’re an accredited investor*, click the button below to invest now!

*Being an accredited investor means that you:

Have an income of at least $200,000 as a single person or at least $300,000 as a couple, or;

Have net worth above $1 million, excluding your principal residence.

BLOGS AND UPDATES

GrowAbility Equity Hotel Fund: Q4 2023 Update

GrowAbility Equity Hotel Fund: Q4 2023 Update

Hello Investors, Below is the year-end financial recap for these newly acquired hotels in Radcliff, KY (Fort Knox) in the GrowAbility Equity Hotel Fund. Candlewood Suites - Radcliff, KY The Candlewood Suites property completed its required Property Improvement Plan...

READY TO INVEST?

If you’re an accredited investor*, click the button below to invest now!

*Being an accredited investor means that you:

Have an income of at least $200,000 as a single person or at least $300,000 as a couple, or;

Have net worth above $1 million, excluding your principal residence.

GROWABILITY EQUITY TEAM

GrowAbility Equity is your sponsorship team that is collaborating with the operators of the hotel assets and one of our strategic partners, GoodEgg Investment.

Kevin Anderson: Kevin brings over three decades of business and entrepreneurial experience. His successful real estate experience dates back to 2005 with rentals and flips, then transitioning to active and passive multifamily investing. Kevin has ownership in over 3700 units in 6 states, and is a General Partner in nearly 20% of those units. During the last 16 years, Kevin also ran a successful college financial planning business.

Prior to 2005, Kevin spent 20 years as a marketing leader/executive, managing teams and multi- million dollar P&Ls to drive success in categories from cereal to yogurt to OTC pharmaceuticals to banking services. Kevin earned an MBA in Marketing from the Wharton School of Business.

Willie Wahba: Willie is based in California. His real estate career began with fix & Flips, rental homes, then transitioned to investing in apartments. Willie is invested in 900+ units across Arizona, Florida, and Texas, over $60 Million in multifamily assets across three states. Willie is a General Partner in over 65% of his portfolio.

Willie’s business experience includes 20 years as an engineering leader managing multi-million dollar defense and commercial contracts in the aerospace industry.