Shelbourne Falcon Initiates Equity Crowdfunding on EarlyShares: Washington, D.C. Hotel RL Awaits Renovation

Shelbourne Falcon has posted a new offering on EarlyShares to give investors access to the renovation and conversion of a Hotel RL. In one of the most vibrant and desirable areas of Washington, D.C., the Hotel is within the Golden Triangle. Strong demographics and high barriers to entry create positive momentum for revenue growth, noted the platform.

The total raise is $3,540,000 with a minimum Investment of $25,000, with an expected hold period of up to 5 years.  The estimated cash-on-cash is 11%, averaged over the investment period with an estimated investor IRR of 17.2%.

Additional investment highlights:

In early 2015, Red Lion Hotels Corporation (NYSE: RLH) and Shelbourne Falcon entered into a Joint Venture introducing a brand new Hotel RL to the Washington DC market. The Hotel was acquired in October 2015. Renovation and conversion to the Hotel RL brand and Red Lion’s operational and marketing systems are already underway. Hotel RL is branding as the first “upscale three-star” property developed for design-conscious, socially-minded travelers.

Shelbourne Capital LLC, a real estate investment firm focused on US commercial real estate, is helmed by CEO Joe Fox.  Since the firm’s founding in 2009, Shelbourne and its affiliates have invested in transactions representing over $650M in total capitalization. In total, Shelbourne currently owns 18 hotels comprising over 3,600 rooms in markets across the United States. The entire portfolio generates approximately $100 million in revenues and approximately $20 million in NOI. Across the entire portfolio total revenues and NOI are up 11% and 36%, respectively. For more portfolio details, click here. Falcon Investors is a real estate investment platform with a nationwide focus owned and founded by David Reis, with a shared US focus.

Joint Venture details:

In early 2015 Red Lion Hotels Corporation (RLHC) and Shelbourne Falcon entered into a Joint Venture in which RLHC sold a 45% stake in 12 of its hotels containing 2,531 rooms to a Shelbourne Falcon affiliate. The entire transaction totaled $123 million including $26 million to renovate these hotels, according to the campaign. After paying off existing debt, RLHC will use the balance of the funds to aggressively pursue subsequent acquisitions such as the Hotel RL in Washington, D.C.