Learn about Cash Flow
Construction and Branding of a Hotel Property.
Pacrim Hospitality Super 8 Hotel
Moncton, N.B.
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See News and Updates for the latest news on this investment.
The Property
An 86-room Super 8 Hotel to be constructed in an ideal location in Moncton, and ready to open in time for the busy season in 2006. This will be the closest hotel property to the Greater Moncton Airport. Its amenities and location will make it highly attractive to vacationers and business and government travelers.
Construction has begun on August 2, 2005. The construction contractor, Rideau Construction, has guaranteed the price and the completion time.
Please see the Executive Summary, which contains the consultant’s report on market research and analysis.
Dec 12/2005:
Photos showing the state of the construction of the Super 8 hotel in Moncton, NB.
Looks like it will comfortably be ready for the scheduled opening on May 1, 2006.
The Investment
Investors receive:
• 10% per annum cumulative preferred return.
• 62.5% of excess cash flow and any capital appreciation.
• Once investors have received at least 20% simple interest returns annually and 100% return of capital, then excess cash flow will be allocated 50% to investors and 50% to the promoters.
• Refinancing with a new mortgage in 2008 is expected to enable a significant repayment of initial capital.
Cash-on-cash returns are projected to grow to 17% in Year 3 and 18.4% in Year 5. (See the Projected Statement of Cash Flows in the Executive Summary).
The projected overall return on investment is in excess of 20% per year.
Minimum investment: $25,000 (Units of $1,000).
The Manager
Pacrim Hospitality, a proven performer that successfully operates 29 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 40% of the property. Pacrim Hospitality is providing a guarantee of the mortgage to the construction mortgagee. See www.pacrimhospitality.com for more information about this company.
The Documents
Executive Summary Offering Memorandum
Executive Summary for Pacrim Dieppe No. 2