ilmscore | $22 MILLION Hotel Renovation DISASTER! w/@natebarger

$22 MILLION Hotel Renovation DISASTER! w/@natebarger

Published: 2022-10-16
Status: Available | Analyzed

Predictions from this Video

Total: 6
Correct: 0
Incorrect: 0
Pending: 6
Unrated: 0
Prediction
Topic
Status
The cost to renovate a Holiday Inn room is projected to be $86,000, significantly less than the $130,000 cost of building a new one.
"these guys here built that at a cost of 130 000 a room that's a Holiday Inn we're all in on this for 86 000 a room"
Hotel Renovation Costs
Pending
Furniture fabrication costs for the hotel were reduced from $420,000 to $200,000 by sourcing from China.
"Brandon they wanted 420 000 for furniture we had it fabricated ourselves over in China for 200"
Hotel Renovation Furniture Costs
Pending
The hotel's projected annual revenue is estimated to be $2 million based on an average nightly rate of $179.95, 68% occupancy, and an 8% cap rate.
"so we're not there yet but we will be out well yeah we'll probably be in the 70s because we got this new project coming in but look at this 179.95 now watch this divide that by an eight cap that furnace is going to be look at that two million dollars"
Hotel Revenue Projection
Pending
The hotel is projected to be valued at $22 million based on its revenue.
"so it's probably 22 Million Dollar Hotel yeah we have that much revenue coming in"
Hotel Valuation
Pending
Investors in this type of deal can expect an internal rate of return (IRR) of 15-20% and an equity multiple of 2.1-2.2x over five years.
"so your internal rate of return is going to be about 15 to 20 percent and that's going to two extra money give you a 2.1 2.2 Equity multiple year five"
Investor Returns
Pending
Renovating one floor of the hotel, which includes 35-36 rooms, takes approximately three weeks.
"it takes about three weeks to do one of these floors okay to do this 35 36 rooms on it"
Hotel Renovation Time
Pending