Did you know that Avestor is a powerful tool for hotel investors looking to raise capital?
In fact, three experienced hotel investors recently launched the first hotel fund on Avestor’s platform: Triple Crown Fund.
Chetan Parikh, Sundeep Dronawat, and Vatsal Ghiya — along with his son, Yash Ghiya — have 5 years of experience purchasing and then operating hotels. They’ve recently decided to expand their business to take on capital from outside investors, and they decided Avestor’s customizable fund would be the perfect fit for their model.
The Investment: Strong Returns on State-of-the-Art Hotels
Triple Crown Fund is currently collecting soft commits for their first deal: a newly renovated Hilton brand Hampton Inn outside of Atlanta. The fund will purchase the property and then operate it in house for 5-7 years, then exit.
“Everything will be done by somebody that we know and trust,” explained Yash Ghiya, “I think that’s the most important part about this vertical. It can be a great property but you have to have somebody that knows what they’re doing that can keep the revenue up.”
Though Triple Crown Fund is primarily focused on Southeastern cities like Atlanta, Jacksonville, and Louisville, they’re open to expanding wherever they find new opportunities. Their goal is to provide investors with high dividends and solid returns.
“This isn’t a property that we’re buying at a really low price and rehabbing and taking a risk in increasing the profits and revenue. Instead, like I said, this is already a strong revenue play. We’re sharing to our investors that they’re going to get a good dividend and a good return when we exit in the next 5-7 years,” Yash explained.
The Benefits: Downturn Flexibility and Untapped Opportunities
Though there are plenty of groups like Triple Crown who purchase and operate hotels, there are relatively few funds that allow outside investors to take advantage of this asset class.
“Most people who go into commercial real estate are doing multifamily, single family, warehousing, even smaller things like storage units, lockers, and stuff. I think that the hotel industry is a huge opportunity that hasn’t been tapped into yet, and that’s exactly what we’re trying to do ourselves,” Yash explained.
However, he and the rest of the fund’s management team are convinced that the hotel space has some powerful advantages over multifamily and other common commercial real estate investments, especially in our current market environment.
“It’s a little difficult to enter the multifamily space. Properties are distressed, and we’re expecting that within 6-9 months there’s going to be a fire sale,” Yash shared. “With hotels, you can adjust the prices of your rooms anytime you want in accordance with the market. We’re able to adjust in a way that multifamily properties probably can’t. If you adjust your price, you help your occupancy, and that helps your revenue.”
Building a Family Legacy
Through Triple Crown Fund, Vatsal Ghiya has also found a powerful new opportunity to grow a family business, bringing in his son Yash to learn about the industry and contribute to the fund’s underwriting and growth.
“I had no real real estate background before this, so I kind of got thrown into the fire,” Yash explained. “I have been here since the inception of the fund, working on every little thing. And I’ve found a passion for it. I do want to continue working on this.”
Pairing the managers’ hotel expertise with Avestor’s capital raising experience — and the growth opportunities available through the Avestor Mastermind — has proven to be a powerful combination for these first-time fund managers.
“We’re new to the crowdfunding space, so Avestor has made it super easy in terms of understanding the industry. They’ve connected us super well with investors, with other fund managers, so the facilitation of our move onto the platform and transitioning our business into a fund has been super well done by Avestor,” Yash explained.
Have an Idea for a Fund? We Want to Help You Bring it to Life!
Avestor’s customizable fund model supports a wide variety of asset classes (that’s right, it’s not just commercial real estate!), including angel investing, judgment liens, boring businesses, startups, and much more.
Plus, our unique model allows you to house multiple asset classes and business models in the same fund — adding up to significant cost savings for you.
If you have an idea and want to find out if the customizable fund can help you bring it to life, we’d love to connect with you! Take the first step today by scheduling a call with a member of our team.