RI Hotel

Property Summary

Type: Hotel
Size: 49 rooms; original underwriting included plans to expand to 76 rooms
Location: New England

Acquisition Summary

Source: Lightly marketed
Investment: $6.7 million
Ownership: LP

Transaction Overview

Equity Resource Investments committed $6.7 million of equity to acquire and reposition two independent hotels in Rhode Island. The hotels, which at the time of acquisition included a total of 49 guest rooms, were separately owned and managed by local “mom and pop” operators. ERI partnered with a repeat hotel sponsor who is highly experienced in the design, management, and operation of boutique hotels in leisure markets. This expertise allows our joint venture to outperform the local competition, which consists almost entirely of small, independently-owned hotels lacking in professional management and modern finishes.

To date, our joint venture has completed a full renovation of both hotels and combined the two assets under the same brand. The renovation included a full rehab of all guest rooms and common areas, the addition of an outdoor pool, and reconfiguration of rooms to add private bathrooms. The post-renovation room count is currently 46 guest rooms and we continue to work through plans to expand the room count through the construction of new buildings on the property. To date, the property is performing materially ahead of underwriting.