Phoenix American Hospitality Launches $50m Reg A Offering
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