08. Financials
Deal Terms
21.3%
Net LP IRR
2.4x
Net LP MOIC
Year 5
RETURN OF CAPITAL
Promote Structure
After full return of capital to LPÂ investors, all profits from the project will be split 60%Â to the LPs and 40%Â to the GP.
Split
60% LP / 40% GP
Hurdle
Return of Capital
Por Forma
Hotel Comparables
Briar Patch Inn
El Portal
OXIDO
Enchantment
L'Auberge
Hotel Comparables
BR / BA
1/1
ADR
$1,199
Ambiente | A Landscape Hotel
Ambiente is a new development in Sedona. It is West of the main drag and away from Oak Creek Canyon. It is positioned as a high-end, luxury "landscape hotel." It opened February 2023.
Comparison to Oxido
Ambiente's biggest challenge is its noisy location right below a busy 4-lane highway. In contrast, Oxido is on the same highway but in a much quieter stretch, elevated 100' above the road with better views. While Ambiente's price point is double Oxido's for more units croweded on less land, Oxido's design is more regionally relevant and tasteful. Oxido's superior location and design suggest upside potential for its nightly rates compared to Ambiente's.
4 Unit 1BR Single-Family Home STR
Four of the top five 1BR STR comps are units are in one remodeled West Sedona home, each unit facing out over the back patio with red rock views.
Comparison to Oxido
The success of this multi-unit model in Sedona gave us confidence that the Willow House model would translate well to this market. However, Oxido is superior due to its location, design, amenities and guest experience. Its tasteful design and better location suggest upside for its rates.
BR / BA
1/1
ADR
$612
BR / BA
1/1
ADR
$627
Big Hit Ultimate View Retreat House STR
This top 1BR / 1BA unit primarily features red rock views. It is the guest house of an adjoining single-family home. It also has a pool for guests to use.
Comparison to Oxido
This unit is far outside of town, south towards I-17 about 15-20 minutes. While the views are the same level as Oxido's, its amenities are lacking. Ultimately, it is still a guest house to an accompanying single-family home and lacks the feel of both privacy and community that Oxido offers simultaneously.