On today's episode, Rich dives into a 44-unit, water front, boutique hotel acquisition he and 3 of his mastermind members are closing on February 2nd. 

Rich discusses the Bodega Coast Inn & Suites history and under performance in Sonoma County (wine country), how the deal came to fruition, touring the property prior to getting into the deal, his advice on buying new boutique hotels, the issues and pain points to look for during tours, and leveraging mastermind members and partners.
 
Rich then analyzes the deal itself: the initial pricing guidance being $13 Million on this 44-unit, bay view property, knocking the guidance down to $8 Million with the seller, a $1 million re-trade on the property, making a complete inspection of the property, discounting the property down to $7 Million, the as-is appraisal value being at $10.6 Million and a stabilized value of $14 Million, a 70% bridge loan to finance the deal, and putting in $1.8 Million on the property renovations.

Lastly, Rich speaks on rebranding underperforming properties, what appraisers are looking for, good locations, projections of 62-63% occupancy year round, underwriting the deal to bring it to $2.5 Million in annual revenue, looking at the sales comps of other local properties, walking into $3.6 Million at the start, a total market overview of Bodega Bay, and how to join the boutique hotel fund.

Interested in investing in this opportunity?

Visit somerscapital.com/invest to book a free call with our team.

*This offering is for accredited investors only*

Interested in joining our boutique hotel mastermind? 

Visit somerscapital.com/mastermind to book a free call with our team. 

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Connect with Rich on Instagram: @rich_somers

Interested in investing with Somers Capital? Visit www.somerscapital.com/invest to learn more.

Interested in joining our Boutique Hotel Mastermind? Visit www.somerscapital.com/mastermind to book a free call.

Interested in STR/Boutique Hotel Management? Visit www.excelsiorstays.com/management to book a free call.