Phase 2 Homewood Suites by Hilton
- $20,000 minimum investment
- investors receive 100% of contributed capital prior to the General Partnership sharing in the distributions
- flow through income; tax efficient structure
- RRSP, TFSA eligible (through separate offering)
- 2017 option for cash investors to make full redemption of units
- sale of hotel at pre-determined criteria
Information from the Issuer:
Changing the Skyline at the Calgary International Airport
own a piece of this world-class project today
Strategically located just seconds north of the Calgary International Airport, the Calgary Airport Hotels & Conference Centre is planned to feature three 10-storey hotels managed and branded under agreements with subsidiaries of Hilton Worldwide, the most recognized international company in hotel accommodations.
- Strategic Location. The Calgary International Airport region is the fastest growing
economic zone in Calgary with numerous major developments currently underway
including a $2.4 billion expansion project at the Calgary International Airport. This
expansion closes Barlow Trail NE.
- World Class Branding. Hilton Worldwide is the fastest growing international hotel
chain with over 3500 hotels across 81 countries. Most recently, Hampton Inn was
selected as the #1 franchise business by Entrepreneur magazine for their 32nd Annual
Franchise 500 magazine.
- World Class Management. Hilton Manage LLC has more than 90 years of proven
hospitality management experience and continually outperforms industry competitors.
- Solid Principals. The Principals of Prestige Hospitality have proven track records in
global brand management, franchising, large scale construction, real estate
development , and finance.
- Significant Upfront Capital. The Principals have invested over $13.2 million ($3.9
million into Hampton Inn development) in capital and equity into the project, all of
which stay in as equity in the project.
- Project is Shovel Ready. All development approvals, franchise agreements, and
management agreements are completed, meaning the project can begin immediately.
- Focus on Business. The focus is on building a portfolio of hospitality assets and not
on profiting on investor funds from upfront lifts or annual management fees.
- Preferred Share Distribution. Due to the preferential tax treatment of preferred
shares, a 9.0% preferred return equates to a higher interest return.
- Solid Business Deal. Unlike some exempt offerings, our project does not rely on a
“hope” strategy in order to succeed. In addition, independent due diligence has been
conducted on this project from HVS, BDC, Exempt Analysis, and Hilton Worldwide.
The Calgary Airport Hotels & Conference Centre is strategically located just one block north of the Calgary International Airport, with access directly from two major road ways, Airport Trail and Barlow Trail. As Canada’s fourth busiest airport, Calgary’s International Airport is expected to handle up to 30 million passengers by 20302, making the Calgary Airport Hotels & Confrence Centre a perfect facility to accommodate the growing number of travelers into Calgary. In addition, the major commercial and industrial development that is currently underway, such as Stonegate’s 445 hectare business park and the Cross Iron Mills supermall, will add additional demand for hotel rooms in the area.
The Calgary International Airport runway expansion, which has been termed “the most important 14,000 feet in Alberta”, will commence construction in the fall of 2011. Due to growing demand, the Calgary International Airport has approved a $2.4 billion infrastructure project which will include the construction of a $500 million runway and a new $1.9 billion international terminal addition.
The construction of the new runway will mean the permanent closure of Barlow Trail between Airport Trail and McKnight Boulevard, and the creation of a new entrance to the airport at 19 Street NE and Airport Trail. Currently, the majority of hospitality services are located directly south of the Calgary International Airport, with Barlow Trail as the main access route to these services. Once this route is closed, travel distance from the airport will double, adding additional travel time and inconvenience to reach these services.
Calgary Airport Hotels & Conference Centre, located just off Airport Trail and 19 Street NE, is therefore strategically situated to take advantage of the runway expansion project and cater to the significant increase in visitors coming to Calgary. In addition, being located by the new entrance gives the Calgary Airport Hotels & Conference Centre maximum exposure to the Calgary International Airport.
Prestige Hospitality Corp. has entered into franchise agreements, as well as management agreements with subsidiaries of Hilton Worldwide. As the leading company in the global lodging industry, Hilton Worldwide has a portfolio of 10 brands, more than 3,500 hotels across 81 countries, and 25 million members of their Hilton HHonors guest loyalty program. These agreements provide the hotels a platform upon which to build an operation that stands on the strength of world class branding and management expertise, thus creating unparalleled hospitality services for travelers which will in turn create solid profit performance for investors.
Hilton Worldwide Management Services
A hotel is only as good as the management team that operates it. Prestige Hospitality Corp. has entered into a management agreement with the Hilton group of companies to ensure the Calgary Airport Hotels & Conference Centre’s assets are managed to the highest standards. Hilton International Manage LLC is the largest operator of Hilton Worldwide hotels and will therefore provide the proven expertise to maximize our profitablity. Management services will include: marketing & communications; revenue management; supply chain management; and human resources.
Hilton HHonors Program
As with all Hilton branded hotels, the Calgary Airport Hotels & Conference Centre will enjoy the marketing strength and reach of the Hilton HHonors guest loyalty program. This program allows its current 25 million members to earn both Hilton Points and Airmiles for staying at any Hilton branded hotel.
Deal of the Year
Note: The award was given based on the development plan and vision of the Hilton® Hotel at the Calgary Airport Hotels & Conference Centre, and is not an endorsement by Hilton Worldwide for the actual investment and securities being offered by the Issuers of this investment opportunity.
Hilton Worldwide recognizes the top operating franchisees and upcoming franchisees at their annual Full-Service Brands Owners’ Summit. The purpose of the annual summit is to offer opportunities for hotel owners and corporate team members to learn, network and build relationship through general sessions, brand-specific meetings, workshops and award presentations. The 2008 summit was held in La Quinta, California where the 2007 hotel development awards across the brands were presented in four distinct categories: Best Conversion, Deal of the Year, Developer of the Year, and Outstanding Achievement.
At this summit, amongst all the franchisees across the world, Prestige Hospitality Inc. was awarded the “2007 Deal of the Year” for their plan and vision for the Hilton® Hotel at the Calgary Airport Hotels and Conference Centre (recognized as Hilton Calgary Airport at time of award).
“We are delighted to present these awards to developers who have demonstrated a commitment to excellence in developing hotels within our family of brands that will exceed our guest’s expectations for gracious hospitality and excellent value,” said Bill Fortier, senior vice-president –franchise development, Hilton Worldwide. “We thank each of these developers for their commitment to maintaining and building top-quality hotels for our Hilton Family of Hotels.”
Subscribers should note that neither Hilton Worldwide, nor HIM nor HIIF nor any of their affiliates or their respective officers, directors, agents or employees are issuers or underwriters of the securities being offered by the Corporation pursuant to this Offering. Hilton Worldwide, HIM, HIIF and their affiliates or their respective officers, directors, agents and employees have not assumed and shall not have any liability whatsoever arising out of or relating to the sale of or offer to sell the Preferred Shares by the Corporation including any liability or responsibility for any financial statements or other financial information contained in this Offering or in similar written or oral communication relating to this Offering.
Strength of Principals
The business acumen of the Principals is a primary strength of Prestige Hospitality Corp. Each individual brings over 20 years of business experience with their own expertise ranging from finance, construction, property development, to hospitality management and global brand management. In 2007, the Principals also partnered together to develop Park 2 Go, an innovative valet parking service at the Calgary International Airport.
The Principals are committed to the long term success of the project and together have already invested approximately $13.2 million to start the Calgary AIrport Hotels & Conference Centre. This upfront capital has funded the completion of architectural and construction drawings, acquisition of the hotel lands (free and clear), zoning application, stratification, development approvals, and Hilton franchise fees.
Focus on the Business
Typically, Principals of private investment opportunities use investors funds for up-front remuneration, charge management fees throughout the duration of a project, take developers’ fee on construction, recoup all initial start-up costs they may have invested to start the project, and allot an unbalanced percentage of backend profit for themselves. The Principals of Prestige Hospitality Corp. are focused on building a successful portfolio of hotel operations and have committed to the following:
- No remuneration or management fees for officers and directors from investor funds
- No developer or construction profits taken on development
- Principal guarantees on construction financing
- No recouping of initial capital that the Principals have invested into the project
- Cost overruns to be funded by Principals
This investment is only for investors by way of subscription agreement. This is not a solicitation for sale or purchase of securities, without the appropriate exemption documents being provided to prospective purchasers. The information enclosed is for informational purposes only and is not a solicitation as to any investment product. This information is inherently limited in scope and does not contain all of the applicable terms, conditions, limitations and exclusions of the investment described herein. The authors of this website make every attempt to ensure that this information is current and accurate. However, if there is a discrepancy, please refer to the specific issuers website or documentation for the most current and correct information.