STR JV/ syndication returns/ terms

[Sean Bramble]

For those of you investing in STR joint ventures or syndications (or any GPs out there): what returns are operators promising in this environment? What are the terms? What sort of investments are they targeting/ where? Would love to hear how professional operators are approaching the space

[Todd Dexheimer]

Hopefully no one is promising returns and are instead projecting returns. With a syndication we are typically projecting between a 5-9% cash on cash and a 14-17%IRR on a 5 year hold. There are of course many different things that can happen during the hold that can make those returns go up or down.

As for an STR, I would expect the possibility of greater returns, with much more work and risk exposure. STR's are great right now, but if a recession hits, there is likely much more volatility.

If you have more specific question on how operators are approaching the space, I am happy to help with that.