Pacrim Dartmouth and Campbellton Super 8 Hotels

Pacrim Hospitality Investment Opportunity

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Refurbishment and branding of two hotel properties in Maritime Canada

The Properties

The Two Properties in this Portfolio are in Campbellton, New Brunswick and Dartmouth, Nova Scotia. They will each be purchased, refurbished and rebranded as Super 8 hotels to be operated by Pacrim Hospitality.

 

Dartmouth, NS – conversion of an existing Howard Johnson hotel with 84 rooms on 8 floors, a leased restaurant lounge and meeting space. Located in downtown Dartmouth, one block from the waterfront and the passenger ferry terminal connecting to downtown Halifax. Purchase price will be $2,200,000, and an additional $1,600,000 will be spent on renovations.

 

Based on projected occupancy rates and room rates, cash-on-cash returns from this property are projected to grow from 10% in Year 1 to 13.31% in Year 2 and 15.71 in Year 3.

 

Campbellton, NB - conversion of an existing 59 room Maritime Inn with a pool, fitness room, business centre, breakfast lounge and meeting spaces. Purchase price for the motel is $1,000,000, and an additional $1,200,000 will be spent on renovations.

 

Based on projected occupancy rates and room rates, cash-on-cash returns from this property are projected to grow from 10% in Year 1 to 17.91% in Year 2 and 19.45% in Year 3.

 

The Investment

• The projected overall return on investment generated from cash returns and capital appreciation is 32% per annum.
• Consolidated cash-on-cash returns are projected to grow from 10% in Year 1 to 15 % in Year 2 and 18% in Year 3. (See the Projected Statement of Cash Flows in the Executive Summary).
• Minimum investment: $25,000 (Units of $1,000).

Investors receive:

• 10% per annum cumulative Investors First™ Preferred Return. Distributions commence in the first year.
• 62.5% of excess cash flow and capital appreciation.
• Once investors have received at least 15% simple interest returns annually and 100% return of capital, excess cash flow will be allocated 50% to investors and 50% to the promoters. (Note: Projections are based upon the 50% formula).

 

The Manager

Pacrim Hospitality, a proven performer that successfully operates more than 30 hotel properties, including Holiday Inn Express, Howard Johnson’s, Radisson Suites and Super 8, as well as a golf club and a hotel reservation system. Pacrim Hospitality and its affiliates will own approximately 40% of the property. See www.pacrimhospitality.com for more information about this company.

 

The Documents

bulletExecutive Summary (PDF -- Updated 2006-Dec-05)

 

bulletOffering Memorandum (PDF -- Updated 2006-July-26)

 

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