Springup Blog

Enjoy Investing Profitably

When was the last time you visited your portfolio for some fresh-shucked Chesapeake Bay oysters?  In addition to paying cash distributions, we make investing fun.  Why didn’t somebody think of this before? Do you understand RevPAR, House Profit, ADR, and Comp Set Index?  We help you learn, because the more you know, the smarter you invest.
 
PROFITFIRST™ HOTEL INVESTMENT PHILOSOPHY
 
In calendar year 2019, gross revenue exceeded $37.5 million across all Springwood-managed hotels and its hotel partnerships distributed approximately $5.2 million operating cash to limited partner investors. Building on decades of hotel experience, Springwood has developed the proprietary ProfitFirstTM hotel investment process. The principles of the ProfitFirstTM investment process are:
  • INVESTORS PROFIT FIRST
    We do not charge “Partnership Management Fees,” “Organizational Fees,” or “Exit Fees” in our partnerships. We never employ sponsor-owned vendors to grab cash from our investors. We only share in profits from the Hotels after you have received your Priority Return from operating cash flow. We do not “claw back” cash flow when we calculate the final splits. If the Hotels fall short of Projections, our share quickly disappears. If they exceed Projections, the Hotels are more profitable for everyone. It’s a “win-win.”
  • PREMIUM BRANDS ONLY
    Springwood works exclusively with Hilton and Marriott franchised brands.  We have seen firsthand that the brand power of these industry leaders yields significantly higher operating revenues, margins, and exit values.

     
  • OWN THE LAND
    Since leased ground can suppress exit pricing, we own the land on which our hotels are built.  We are highly incentivized by the ProfitFirst™ model to secure the optimal exit value.

     
  • GUEST-FRIENDLY LODGING AT INVESTOR-FRIENDLY COST
    We have developed construction methods that deliver a “feel” of quality construction, using wood-framed structures with Springwood-specific sound attenuating techniques.  We ruthlessly root out wasted and duplicated space.

     
  • MANAGE OUR OWN
    Hotels are different from typical real estate investments because they are operating businesses that just happen to be located in real estate.  Management plays a much greater role in the success of a hotel than it does for other real estate investments.  Springwood Hospitality is uniquely qualified to manage your Hotels with excellence as an active participant who is incentivized to win.