Holiday Inn Express
Royse City, Texas
A mismanaged 68-room asset bought below replacement cost on $500K of equity — refinanced within a year to return all invested capital, then held for five more years of cash flow before exit.
in year one
A $3.8mm refinance approximately 12 months after acquisition paid off the original $2.8mm loan and returned $1.2mm to equity — 2.4× the $500K invested. Every dollar thereafter was return on capital already recovered, which is what drives the outsized time-weighted IRR.
How value was created
A non-performing, mismanaged asset acquired for $3.25mm in a strong Dallas–Fort Worth submarket.
New management and disciplined cost control lifted NOI from $125K to $523K — more than 4×.
A $3.8mm refinance at month 12 returned 2.4× the equity, de-risking the deal while retaining full ownership.
Disclosures. For informational purposes only; not an offer to sell or solicitation to buy any security. Reflects a single realized investment selected to illustrate strategy and is not representative of all investments or overall portfolio performance. Past performance is not indicative of future results. Figures are approximate, unaudited, and stated on a gross basis; returns do not reflect the deduction of management fees, carried interest, or fund expenses, which would reduce returns realized by an investor. The internal rate of return shown is time-weighted and is elevated by the return of all invested capital via refinancing in the first year of the hold; the equity multiple and total ROI may be more representative measures of overall performance. Return metrics are calculated on invested equity and reflect the manager's estimates.