PROFITFIRST™ HOTEL INVESTMENT PHILOSOPHY

Springwood Hospitality has achieved significant milestones in recent years, with successful hotel sales exceeding $240 million since 2019. Additionally, the company has played a pivotal role in facilitating private capital investments of nearly $150 million from high-net-worth entities and individuals into various real estate ventures, showcasing their ability to attract and manage substantial financial resources.

Drawing on decades of collective hotel industry experience, Springwood Hospitality has leveraged its expertise to develop the proprietary ProfitFirstTM hotel investment process. This innovative approach reflects the company's commitment to maximizing returns for investors, optimizing operational efficiency, and ensuring the overall success of their hotel investments. By integrating this specialized investment process into their operations, Springwood Hospitality demonstrates a forward-thinking and strategic approach to real estate development and management in the hospitality sector.  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.