Investor Financial Summary · Confidential
A 70-Key Upscale Hotel & Event Venue
All figures below reflect the model's Base / Active underwriting case. Conservative and Upside sensitivity cases carried elsewhere in the model are intentionally not shown in this summary.
The Cloisters is programmed as a 70-key upscale hotel: 60 standard guestrooms and 10 flexible extended-stay suites, a 180-seat ballroom / event hall, one additional meeting room, a third-party-operated restaurant and bar, and four complementary retail bays totaling approximately 5,000 SF of GLA, on a 3.08-acre Town Center parcel (Parcel 22671200026). Total gross building area is approximately 58,000 SF (63,000 SF of total built area including the retail component), delivered over a 20-month construction period following a 4-month pre-opening period. The design strategy concentrates architectural investment in the public realm — courtyard, colonnades, ballroom, arrival, landscaping and lighting — while standardizing guestroom, corridor, and back-of-house construction.
| Source | Amount | % |
|---|---|---|
| Permanent debt (60% LTC) | $16,767,935 | 60.0% |
| LP-class equity (accredited investors) | $11,178,623 | 40.0% |
| Total Project Cost | $27,946,558 | 100.0% |
| Use | Amount | % |
|---|---|---|
| Hard costs — hotel, event hall & restaurant shell | $16,619,500 | 59.5% |
| FF&E, OS&E & soft costs (hotel program) | $6,957,558 | 24.9% |
| Incremental retail development cost | $1,494,500 | 5.3% |
| Total Project Cost | $27,946,558 | 100.0% |
The Base Case assumes approximately 21,000 annual addressable room nights against 25,550 total available room nights (70 keys × 365 nights), an 80.3% capture rate of addressable demand. Standard-room ADR of $273 sits close to the $231.99 rate Ave Maria University has already directed conference attendees to pay at an off-site hotel — before any premium for an on-site, purpose-built venue — and remains conservative relative to the broader Naples–Marco Island boutique comp set of $280–$500 ADR.
Room revenue is supplemented by a third-party restaurant/bar concession structure: the operator bears F&B payroll, food cost, and departmental risk, while the hotel retains base and percentage restaurant rent, a negotiated share of banquet catering, and 100% of ballroom/meeting-room rental and AV revenue. At stabilization, the venue supports 102 major events per year (30 weddings, 22 conferences/retreats, 25 university/institutional events, 25 private/social events) plus 70 smaller meetings — producing approximately $565,000 of venue rental revenue, $1.01 million of gross catering activity (of which $202,000 flows to the hotel as its catering share), and $43,000 of AV revenue.
| Line Item | $ / Year | % of Revenue |
|---|---|---|
| Revenue | ||
| Standard room revenue | $4,015,127 | 68.9% |
| Suite room revenue | $757,700 | 13.0% |
| Total room revenue | $4,772,827 | 81.9% |
| Other revenue (parking / incidentals) | $95,457 | 1.6% |
| Restaurant lease, catering share & event revenue | $955,624 | 16.4% |
| Total Revenue | $5,823,908 | 100.0% |
| Departmental Expenses | ||
| Rooms department expense | $1,240,935 | 21.3% |
| F&B / restaurant department expense | $0 | 0.0% |
| Event department expense (ballroom/meeting-room labor, setup, turnover) | $242,887 | 4.2% |
| Total departmental expenses | $1,483,822 | 25.5% |
| Undistributed Operating Expenses | ||
| Administrative & general (6.5%) | $378,554 | 6.5% |
| Sales & marketing (5.5%) | $320,315 | 5.5% |
| Repairs & maintenance (4.0%) | $232,956 | 4.0% |
| Utilities (3.5%) | $203,837 | 3.5% |
| IT & systems (1.2%) | $69,887 | 1.2% |
| Security (1.0%) | $58,239 | 1.0% |
| Other undistributed expenses (1.5%) | $87,359 | 1.5% |
| Total undistributed operating expenses | $1,351,147 | 23.2% |
| Gross Operating Profit (GOP) | $2,988,939 | 51.3% |
| Fixed Charges | ||
| Insurance | $145,000 | 2.5% |
| Property taxes | $195,000 | 3.3% |
| Total fixed charges | $514,717 | 8.8% |
| EBITDA | $2,474,222 | 42.5% |
| FF&E reserve (4.0% of revenue) | $232,956 | 4.0% |
| Hotel Net Operating Income | $2,241,265 | 38.5% |
| + Retail NOI (100% economic) | $152,656 | 2.6% |
| Combined Property NOI | $2,393,922 | 41.1%* |
LP-class equity of $11,178,623 is being raised from accredited investors.
| $ / Year | Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 | Yr 6 | Yr 7 | Yr 8 | Yr 9 | Yr 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Revenue | $3.96M | $5.13M | $5.82M | $6.00M | $6.18M | $6.36M | $6.55M | $6.75M | $6.95M | $7.16M |
| Combined Property NOI | $1.52M | $2.07M | $2.39M | $2.45M | $2.52M | $2.58M | $2.64M | $2.71M | $2.78M | $2.85M |
| Annual Debt Service | $1.36M | $1.36M | $1.36M | $1.36M | $1.36M | $1.36M | $1.36M | $1.36M | $1.36M | $1.36M |
| Debt Balance (EOY) | $16.49M | $16.20M | $15.88M | $15.54M | $15.19M | $14.80M | $14.39M | $13.96M | $13.49M | $13.00M |
| DSCR | 1.11x | 1.51x | 1.75x | 1.79x | 1.84x | 1.89x | 1.93x | 1.98x | 2.03x | 2.08x |
The Base Case waterfall is straightforward: an 8% cumulative, non-compounding preferred return on LP-class equity, then return of capital, then a 70% LP / 30% GP residual split, with no GP catch-up.
| Distribution ($) | Yr 1 | Yr 2 | Yr 3 | ... | Yr 9 | Yr 10 (incl. sale) |
|---|---|---|---|---|---|---|
| Total LP-pool distribution | $160,447 | $707,231 | $1,035,302 | ... | $1,417,595 | $21,090,738 |
| Stabilized Combined Property NOI | $2,393,922 |
| Hotel / Retail valuation cap rates | 7.75% / 8.00% |
| Stabilized value (sum-of-the-parts) | $30,827,755 |
| Total Economic TPC | $27,946,558 |
| Value creation vs. TPC | +$2,881,197 (10.3%) |
| Development spread (YOC − cap rate) | 82 bps |
| Forward Year-11 Combined NOI | $2,916,761 |
| Gross sale price (sum-of-the-parts) | $37,560,626 |
| Selling costs | ($751,213) |
| Debt payoff (Year-10 balance) | ($12,997,054) |
| Net sale proceeds to equity | $23,812,359 |
| Value creation vs. TPC (gross) | +$9,614,068 (34.4%) |