The Power of Appreciation (real estate growth over and above dividends)

At Phoenix American Hospitality, “Capital Appreciation” is a cornerstone of our business model. 

Our latest offering, American Hospitality Properties REIT, has taken the approach of purchasing hotels at COVID-reduced valuations, improving facilities and operations, returning and optimizing profitability during the resurgence of travel, all while paying Investors monthly dividends exceeding our goal of 8% (annualized).

The end game, and where larger gains could originate is what is called capital appreciation, as illustrated in one of our first messages to you, “buy low, sell high, and bank profits along the way.” We have completed the first step, buying low. When others saw tragedy in the travel industry, we saw, and still see, an opportunity for growth. Because hotels are priced based on recent (think 12-24 months) revenue, most properties are still at pre-pandemic valuations. We improve operations as we bank profits for our Investors. We are experts in dynamic and inflation-fighting room rate pricing based on consumer demand.

We expect the selling price of our Premium Select Business Hotels, consisting of national brands such as Marriott and Hilton, to increase over the next few years from their low purchase price throughout the pandemic. When that happens, you as Investors are anticipated to share in any profits from the sale of our properties. It is possible that the bulk of the income you should receive from your investment will be with the profits from the hotels’ sale.

That is Capital Appreciation, the growth of the underlying asset–our hotels.

Now may be the time for an investment in real assets and a real operating business, especially as stock and bond markets continue to deliver inconsistent results.

To invest, please visit our offering page. Here you can also read our SEC-qualified offering circular.

If you’d like to reply to this email, feel free to send us a note at Contact@phoenixamericanhospitality.com.

Share this article

Recent Newsletters

See All Newsletters