Phoenix American Hospitality Launches $50m Reg A Offering

USA, Dallas, Texas. August 28, 2019

Phoenix American Hospitality, a Dallas-based opportunistic hotel fund manager, has launched its $50M Reg A offering, American Hospitality Properties REIT, Inc.

The American Hospitality Properties REIT, Inc. was created with a focus on identifying and acquiring limited and upscale select service hotels in the United States. These acquisitions provide cash flow and value-added opportunities for the company.

"We are thrilled to announce this new offering and the opportunities it will present for our company," said Perch Nelson, President and Chief Executive Officer of Phoenix American Hospitality. "After the success of our last offering, we are excited to continue to focus on acquisition and management opportunities to expand our ever-growing portfolio."

This announcement comes shortly after the closing of Phoenix American Hospitality's successful $50M Reg D offering, American Hospitality Properties Fund III, LLC, which allowed the company to acquire 17 upper midscale and upscale select service hotels in the United States.

This new offering is available for accredited and non-accredited investors at an offering price of $10 per share with a minimum purchase of $5,000 for both qualified and non-qualified accounts.

Phoenix American Hospitality intends to seek investments that meet the following characteristics:

  • Expense Reduction: Aggressive cost reduction, increasing cash flow
  • Location: Urban market, business travel focus
  • Occupancy: Increased business travel demands higher rates
  • Strong Brand Affiliation: Hotels with worldwide brands with strong systems including Marriott, Hilton and Hyatt
  • Barriers to Entry: Greater market share due to limited available hotel franchises
  • Pricing Opportunity: Acquire hotels at below replacement cost

About PAH Management

Media Contact:

Amy Wood
Account Coordinator
MCA Group
T: 214-654-0402
E: Amy@mcaprgroup.com
W: http://www.mcaprgroup.com

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Revenue Management: Focus On Profit

Revenue Management is still a relatively new profession within hotel operations and as such, it continues to evolve. One significant trend in this area is a shift away from using revenue as the foundation to generate key performance indicators (KPIs) and to instead place the emphasis on profit. Traditionally, revenue managers have relied on total revenue per available room (TrevPAR) and revenue per available room (RevPAR) as the basis of their KPIs. Now, some revenue managers are using gross operating profit per available room (GOPPAR) as their primary KPI. This puts profit at the center of revenue management strategy, and managers are increasingly searching for new ways to increase the profitability of their hotels. Return on Investment is the objective of any hotel investment, so it is only logical that profitability and ROI will be emphasized going forward. Another trend is an expanded focus on direct hotel bookings. Revenue managers know that one way to increase profitability is to steer guests away from online travel agencies (OTAs) and book directly with the hotel. This tactic also reinforces brand identity and loyalty, and encourages repeat business. In addition, it provides a valuable platform to market the hotel directly to the customer, and to upsell room upgrades or other services to them. Another trend for revenue managers involves automation in their software programs. Revenue management systems with automation are far more desirable than those without it. Automating data entry and logistics increases efficiency, allowing managers to spend more time on formulating strategy. As a bonus, an automated system helps with aggregating and interpreting data. The October issue of the Hotel Business Review will address these developments and document how some leading hotels are executing their revenue management strategies.