Prepared for: Internal Review Only
Distribution: Restricted
1. Overview
A dedicated acquisition vehicle is in final stages of purchasing the Versante Hotel, an income-producing hospitality asset located minutes from Vancouver International Airport (YVR).
The fund is syndicating up to CAD 15M of Limited Partnership equity.
Subscription currency may be CAD or RMB.
LP commitments are being warehoused internally until the syndication is complete.
A Limited Partner Advisory Committee will be established for investors committing CAD 10M+, providing direct oversight of governance and material decisions.
2. The Asset
- Modern, profitable hotel with a strong base of airline crew contracts due to proximity to YVR.
- Planned rebranding under a Hyatt global flag, with an experienced Grade A operator taking over management.
- These two elements—airport demand + global brand—are the backbone of the underwriting.
Acquisition price is approximately CAD 68M, which is below replacement cost and reflects the court-ordered transaction environment.
3. Baseline Economics
Stabilization Assumptions:
- Occupancy to remain above 80 percent, consistent with historical performance.
- ADR lift from CAD 331 → CAD 390 over five years through Hyatt distribution.
- Revenue growth of ~6 percent annually.
- EBITDA margin improvement from 40 percent → 44 percent through operational efficiency and brand systems.
NOI Profile:
- Year 1 NOI: ~CAD 4M
- Expected annual NOI growth: 5–11 percent
Target Returns:
- Investor IRR: ~17 percent over a five-year hold
- Gross IRR: 15 percent+
- Projected exit valuation: CAD 80M+
Exit logic is straightforward: larger strategic buyers and hotel funds pay for stabilized, branded airport-adjacent assets with predictable cash flow.
4. Structure & Terms
- LP Raise: CAD 15M
- Fund Use: Equity component of acquisition
- Subscription: CAD or RMB
- Governance: LP Advisory Committee for >CAD 10M commitments
- Closing: Early December target
- Optional Leverage: For families requiring liquidity, prime-rate collateralized lending available through Francis
This structure was designed with multi-jurisdictional capital in mind and is intentionally simple. No waterfall complexity beyond standard GP/LP alignment.
5. Why This Is Suitable for a Family Office
- Cash Flow First. Revenue comes from a diversified mix with long-standing airline contracts anchoring occupancy.
- Brand Conversion Upside Without Development Risk. Value creation is driven by a reflag, not construction.
- Downside Defined by Tangible Asset Value. Purchase price sits below replacement cost and reflects a rare pricing window.
- Airport Adjacency = Durable Demand Cycle. Traffic does not correlate tightly with local real estate cycles.
- Governance Built In. LP Advisory Committee gives real oversight, not symbolic reporting.
This fits the profile of a quiet, predictable, globally familiar hospitality asset with moderate leverage, clear cash flow, and an institutional exit path.
6. Risks (and Mitigants)
Brand Conversion Risk
Mitigated through a top-tier operator with global track record; conversion budget included upfront.
Interest Rate Sensitivity
Moderate leverage structure; DSCR remains healthy at stabilization.
Airline Contract Renewal Timing
Contracts are staggered and multi-year; Hyatt flag creates additional corporate and loyalty-driven demand to buffer any gaps.
ADR Ramp Uncertainty
Underwriting uses conservative assumptions given the airport micro-market and brand effect.
7. Closing Perspective
This is not a speculative hospitality venture.
It is a stabilized, hard-asset, income-oriented investment with a credible path to mid-teen returns, downside anchored in real value, and a global operator creating predictable upside.
For family offices looking for:
- direct exposure to Canadian hospitality
- strong governance
- modest complexity
- optional RMB deployment
- and an asset that can quietly sit on the balance sheet with professional oversight
this is a straightforward fit.
🥷 Access Protocol
If this speaks to your family’s values, legacy thinking, or Hotel obsession—reply quietly. Let’s talk, text me: 236.988.8383
We’ll keep it quiet from there.
-Ryan