Rancho Cordova Hotel
Actual Returns
3.0x
17%
7.3 years
Internal Rate of Return
Equity Multiple
Holding Period
Executive Summary
RCP Rancho Cordova Hotel, LLC invested approximately 75% of the $2.4 million of equity, along with a $9.7 million acquisition and renovation loan, to purchase a 158-room Hyatt House hotel in Rancho Cordova, California, a suburb of Sacramento. It is anticipated that the hotel will be completely renovated and re-branded as a Doubletree Suites by Hilton within 12 months of acquisition. It is planned for the hotel toremain open for business throughout the renovation process.
Closing Summary
We are very pleased to report the sale of the Rancho Cordova Doubletree Hotel. The hotel was purchased for $27,200,000 by a development group which plans to convert the hotel to an apartment community. The purchase price equates to a very strong valuation of $172,151 per room.
RCP Class A Investors earned a 17.1% internal rate of return (IRR) and a 3.0x equity multiple over an investment period of 7.3 years. RCP is pleased to bring this investment to a conclusion with a favorable outcome.
This investment has overcome several challenges, most notably enduring through the global Coronavirus pandemic and a failed prior sale. It’s a testament to the solid investment thesis and low-cost basis that this project has produced such strong investor returns after more than 7 years
