As Warren Buffet says: be fearful when others are greedy; buy hotels when others are fearful.
We certainly share this sentiment, but with one key difference. We’re not just purchasing hotels—we’re improving them, too.
Phoenix American Hospitality recently announced $4 million in improvements to its 17th acquisition, Marriott Cape Canaveral Cocoa Beach.
How’s that for active management (instead of passive ownership)? With all the strides our REIT’s been making lately, you may be wondering, isn’t travel down? Aren’t we still in the middle of a global pandemic, pushing hotel valuations down to historic levels? Well, our answer to these questions is, “All the more reason to get invested with Phoenix,” and to explain that, we’ve uploaded a new video to our YouTube channel. If you have the time (and it’s not even two minutes long), we recommend giving it a watch.
WATCH: PAH announces $4 million in improvements to its Cocoa Beach hotel
Keep in mind, our REIT has already made leaps and bounds since this video was produced. For one thing, we recently acquired a preferred interest in two name-brand hotels—Hilton Garden Inn and Hilton Homewood Suites—bringing our total to three hotels owned and operated!
Unlike commercial real estate, the hotel business tends to rebound fast after financial downturns. 2021 was a year of recovery for hotels, with revenues approaching pre-pandemic levels. Now, experts believe 2022 will keep that momentum going right past 2019 levels, and become a strong growth year for the sector, potentially hitting a fever pitch in the fall.
Our strategy is simple: we buy Premium Business Select Hotels now, at COVID-depressed prices, manage and improve the properties, and share an annual 8% dividend paid out monthly. Then, once the market has improved and hotels have reached full market value (our strategy is in an estimated 3–5 years) we sell the properties, aiming for more than a 20% annualized return. This means that, if all goes according to plan, you’ll receive monthly dividends (which we’re already paying), your initial investment back, AND growth!
For more information on earning monthly income through an investment in our Premium Business Select Hotel REIT, you can visit our offering page, where you can also read our recently updated Offering Circular.