Gain priority with preferred status, ensuring you receive dividend payments and asset distributions ahead of common equity holders. This higher claim on profits and assets enhances protection for your investment.
Enjoy a combined fixed yield of 12%, delivered through 6% quarterly cash distributions and 6% annualized accrued Paid-In-Kind (PIK) distributions. Alternatively, opt for a 12% annualized cash dividend. Both options offer consistent, high-yield returns.
Invest in a diversified portfolio of 37 hotels across 18 targeted markets. This offering delivers steady income with the potential for long-term capital appreciation, preserving your capital while positioning you for growth in the thriving hospitality industry.
Offering Highlights
| Legal Entity Name | Caliber Hospitality Trust, Inc. |
| Property Location | Across the U.S. |
| Asset Class | Hospitality |
| Investment Type | Equity – Multi-Asset Hotel Trust |
| Investment Strategy | Core, Core+, Value-Add, Opportunistic |
| Investment Objective | Growth & Income |
| Hotel Property Manager | Highgate Hotels, L.P. |
| Investor Profile | Accredited Investors Only |
| Fund Structure | Up-Corporation or “Up-C” |
| 1031 Exchange Allowed? | No |
| Opportunity Zone? | No |
| SD-IRAs Allowed? | Yes |
| Targeted Hold Period | Minimum 1-year |
| Targeted Total Raise | $50,000,000 |
| Sponsor Co-Investment | N/A |
| Minimum Investment | $25,000 |
Offering Summary
With a portfolio of hotels spanning multiple markets and a strategic plan to aggregate up to $1.5 billion in middle-market hotels, Caliber Hospitality Trust is poised for growth and success.
Our mission is to acquire undervalued hotels with stable demand and high barriers to entry. The key benefits of our preferred equity offering include preferred status, cash dividends, and steady income. Investors can earn distributions with the following three options:
- Option 1 offers a combined fixed yield of 12% through quarterly cash yield and annualized accrued paid-in-kind (PIK) distribution. Additionally, our preferred equity automatically converts to common shares at IPO, and holders have the option to exercise a 5% penny warrant.
- Option 2 offers a yield in cash of 12% annualized and paid quarterly.
- Option 3 offers a yield in cash of 12% annualized and paid quarterly; with no automatic conversion at the time of IPO.
Investment Details
Investment Description
Caliber Hospitality Trust, Inc., a newly organized Maryland corporation formed on March 9, 2021 to take advantage of the current dislocation in the lodging industry by consolidating multiple hotel owners and operators and their property portfolios to create a hospitality company that is more able to access capital and experience operating and cost efficiencies as a result of its significant scale and geographic and brand diversity.
Portfolio Overview
Upon completion of the Formation Transactions, CHT’s portfolio will consist of 37 properties with +/-5,367 keys. The portfolio is designed to provide diversification across several property types including 22 select-service, nine full- service, four all-suites, and seven extended stay hotels. The Portfolio Contribution Value is based on a 10.5x multiple applied to the 2025F Hotel EBITDA.
Property Type & Key Facts and Figures
Brand Overview
The portfolio consists of 37 properties. Actively negotiating term sheets and expect to subsequently contribute these assets into CHT upon execution. There is no guarantee of future performance or success.
Sponsor Summary
Caliber Hospitality Trust (“CHT”), an externally advised private hospitality corporation, is a subsidiary of CaliberCos Inc. (NASDAQ: CWD). Led by an experienced team of agile entrepreneurs and specialists, CHT is designed to roll up hotel assets across the U.S. through tax-deferred contributions of those assets to CHT.
We focus on middle market full service, select service, extended stay, and lifestyle hotels in attractive locations that are benefiting from high population growth and high net migration. We take an opportunistic approach to assets – one that benefits our investors, contributors, operators and consumers. We see a compelling opening to disrupt the hospitality industry by tapping into the generational shift in wealth and buying power to younger generations who expect elevated hotel experiences no matter the type of the property. Leveraging Caliber’s vertically integrated platform and development expertise, CHT is adding value to portfolio assets and creating opportunities for third-party contributors. CHT’s asset management technology enables management of mixed asset classes, top-tier brands and third-party managers, who all interact via an integrated platform.
Portfolio Details
Assets Under Management
With roots in its home state of Arizona, Caliber Hospitality Trust is growing across the United States, initially focusing on the Southwest and Southeast regions with some of America’s best known hotel brands.
Hampton Inn & Suites
Type
Purchase Price
Sale Price
Hold Period
Hilton Phoenix Airport
Type
Purchase Price
Sale Price
Hold Period
Business Plan
General Business Summary
Our business plan focuses on leveraging the current UP-C structure to aggregate $1 billion to $1.5 billion in middle-market full-service, select-service, lifestyle, and extended-stay hotels. This will be achieved through cash proceeds and the issuance of common shares and/or operating company units. The plan includes a robust value-creation strategy centered on opportunistic business combinations, acquiring disrupted assets, and capitalizing on a proprietary flow of future developments. Additionally, we plan to file with the SEC to secure a public listing for an IPO.
To request and review the full business plan, please schedule a call with one of our Wealth Development Representatives.
Financial Plan
Capital Plan
| Capital Sources | |
|---|---|
| Institutional Raise | $125,000,000 |
| Family Office Capital | $25,000,000 |
| Caliber Preferred Equity | $25,000,000 |
| TOTAL SOURCES | $175,000,000 |
| Capital Uses | |
|---|---|
| Debt Reduction | ($44,600,000) |
| Accretive Acquisitions & Property Improvements | ($45,400,000) |
| Closing Captial | ($73,300,000) |
| Operations | ($11,700,000) |
| TOTAL USES | ($175,000,000) |
Investment Options & Terms
Option 1: Class B: 12% Combined Fixed Yield
Target Raise (for all units)
$50,000,000
Minimum Investment
$25,000
Initial Price Per Share
$10.00
Yield in Cash *
6%
annualized with quarterly distributions
Annualized payment-in-kind (PIK) dividend in CHT Preferred Stock *
6%
5% Penny Warrant
Convertible at Qualified IPO
Preferred equity offering will expire January 27, 2025
At time of IPO, preferred shares automatically convert to common shares with no lock-up
Payment-in-kind (PIK) is paid at the time of IPO
*6% Yield, 6% PIK, and 5% Penny Warrant are not guaranteed. | The company is seeking an Initital Public Offering (IPO), but there is no assurance that this objective will be accomplished.
Option 2: Class C: 12% Cash Dividend
Target Raise (for all units)
$50,000,000
Minimum Investment
$25,000
Initial Price Per Share
$10.00
Yield in Cash *
12%
annualized, paid quarterly
Preferred equity offering will expire January 27, 2025
At time of IPO, preferred shares automatically convert to common shares with no lock-up
* 12% yield is not guaranteed. | The company is seeking an Initital Public Offering (IPO), but there is no assurance that this objective will be accomplished.
Option 3: Class E: 12% Cash Dividend
Offering Size
$10,000,000
Minimum Investment
$100,000
Initial Price Per Share
$10.00
Yield in Cash *
12%
annualized, paid quarterly
Preferred equity offering will expire December 31, 2025
At time of IPO, preferred shares do not automatically convert to common shares. The shareholder has the right to convert at the time of IPO.
* 12% yield is not guaranteed. | The company is seeking an Initital Public Offering (IPO), but there is no assurance that this objective will be accomplished.
Key Dates
Contribution and Closings timeline
Satori Contribution
Q3 2024
Close on 8 other LTD Assets and Begin Satori Assets **
Q4 2024
Continue to Close on Satori and Begin Portfolio 4 Close **
Q1 2025
Continue to Close on Portfolio 4
Q2-Q4 2025
** Property closings for Satori and Portfolio 4 to likely be staggered over 2-3 quarters pending funding access and cash needs per hotel. | Additional pre-IPO contributions will depend on audit readiness and portfolio’s timing of debt maturity and/or franchise relicensing.
Executive Team
Our executive team brings extensive experience in scaling businesses, having grown Caliber to $2.9 billion in assets under management, serving over 2,000 customers with more than 80 employees. With broad expertise in strategy, capital raising, real estate investing, product development, and capital markets, they are entrepreneurial leaders with a growth mindset and a contrarian approach. Aligned with shareholders, the team holds approximately 50% stock ownership, including the Co-Founders, ensuring their interests are fully aligned with investors.
CEO
Chris LoefferAs CEO, Chris oversees all acquisitions, manages investment funds, and builds strategic partnerships.
PRESIDENT, CO-FOUNDER & DIRECTOR
Jennifer SchraderJennifer is in charge of daily operations at Caliber and provides hands-on direction for all new construction and redevelopment projects across the company’s portfolio.
CHIEF FINANCIAL
OFFICER
Jade LeungAs CFO, Jade Oversees corporate financial planning, reporting, operational optimization, and risk management across Caliber’s business units.
CHIEF DEVELOPMENT OFFICER
Roy BadeRoy is responsible for sourcing and analysing potential properties for the company, seeking ways to maximize returns on existing properties, and managing construction and development activity.
Documents & Resources
Caliber Hospitality Trust, Inc. Documents
Other CHT Documents
Media
Articles & Press Coverage
Complicated Contributions to Caliber Equate to Massive Growth Plans
Caliber Hospitality Trust Expands Roll-Up with Seven New Hotels from Satori Collective
Assumptions & Risks
Below are selected risk factors associated with an investment in Caliber Hospitality Trust, Inc.. Investments in Caliber private placements can lose entire value, are illiquid and are speculative.
- Investment involves high degree of risk; limited liquidity; no public market; suitable only for sophisticated investors;
- Investment strategy is speculative; returns are not guaranteed and no assurance objectives will be achieved;
- May pay distributions and fund redemptions from borrowings, offering proceeds, or asset sales with no limits on amounts it may pay from such sources;
- May invest in securities that involve a higher degree of risk or have valuations that fluctuate dramatically;
- Access to debt financing may be limited and subject to rate increases, restrictive covenants, or untimely repayment obligations;
- Involves unique risks associated with real estate investment, including competition for tenants, interest rate risk, occupancy issues, insurance risks, inflation risk, among others.;
- Offering is not contingent on a minimum capital raise;
- Multiple conflicts of interest, including compensation arrangements, incentive fee structures, positions held with affiliated entities, co-ownership arrangements, and the purchase of and allocation of investment opportunities.
- For a more complete discussion of risk factors, please refer to the Caliber Hospitality Trust, Inc. PPM.
Disclosures
This website is neither an offer to sell nor an offer to buy securities. An offering is made only by the private placement memorandum (“PPM”) or similar offering document. This material must be read in conjunction with the PPM in order to fully understand all the risks and benefits of the offering. Neither the U.S. Securities and Exchange Commission (“SEC”) nor any state regulator has approved or disapproved this offering. Any representation to the contrary is false and misleading. A copy of the PPM must be made available to you in connection with any offering.
Investment is restricted to accredited investors only, as that term is defined by the SEC.
SEC.gov | Accredited Investors
The above includes statements concerning the Company’s expectations, beliefs, plans, objectives, goals, strategies, assumptions of future events, future financial performance, or growth and other statements that are not historical facts. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, readers and the audience can identify these forward-looking statements through the use of words or phrases such as “estimate,” “expect,” “anticipate,” “intend,” “plan,” “project,” “believe,” “forecast,” “should,” “could,” and other similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results or outcomes to differ materially from those included in the forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update the information contained in any forward-looking statements to reflect developments or circumstances occurring after the statement is made or to reflect the occurrence of unanticipated events. The Company’s expectations, beliefs, and projections are expressed in good faith and are believed by the Company to have a reasonable basis, but there can be no assurance that management’s expectations, beliefs, or projections will result or be achieved or accomplished. Factors that may cause actual results to differ materially from those included in the forward-looking statements include, but are not limited to, factors affecting the Company’s ability to successfully operate and manage its business, including, among others, title disputes, weather conditions, shortages, delays, or unavailability of equipment and services required in real estate development, property management, brokerage and investment and fund operations, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; changes in costs of operations; loss of markets; volatility of real estate prices; imprecision of property valuations; environmental risks; fluctuations in weather patterns; competition; inability to access sufficient capital from internal and external sources; general economic conditions; litigation; changes in regulation and legislation; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities, acts of war, cyber attacks, or pest infestation; increasing costs of insurance, changes in coverage and the ability to obtain insurance; and other presently unknown or unforeseen factors. Other risk factors are detailed from time to time in the Company’s reports filed with the Securities and Exchange Commission. In addition to financial measures calculated in accordance with generally accepted accounting principles (“GAAP”), this presentation contains certain non-GAAP financial measures. The Company believes that such non-GAAP financial measures are useful because they provide an alternative method for assessing the Company’s operating results in a manner that is focused on the performance of the Company’s ongoing operations, for measuring the Company’s cash flow and liquidity, and for comparing the Company’s financial performance to other companies. The Company’s management uses these non-GAAP financial measures for the same purpose, and for planning and forecasting purposes. The presentation of non-GAAP financial measures is not meant to be a substitute for financial measures prepared in accordance with GAAP. This information does not constitute an offering of, nor does it constitute the solicitation of an offer to buy securities of the Issuer. This information is provided solely to introduce the Issuer to the recipient and to determine whether the recipient would like additional information regarding the Issuer and its anticipated plans. Any investment in the Issuer or sale of its securities will only take place pursuant to an appropriate, private placement memorandum and a detailed subscription agreement. This information is confidential and may not be distributed to any other person without prior written consent. An investment is suitable only for persons of substantial net worth that are willing, and have the financial capability, to bear the economic risk of an investment for an indefinite period of time. Past performance is not necessarily indicative of future results and there is no assurance that the offering will achieve its objectives or avoid significant losses. There is no public market for the securities and the Issuer is not required to redeem the units. Investors should consult their own financial professional for advice specific to them. Circumstances may exist where potential conflicts of interest exist between the Investor, Advisor, Sponsor, and affiliates in connection with the management and operation of the offering. This offering may be subject to volatility of public securities that may impact the net asset value (NAV) and total return due to market risk. The use of borrowed funds to leverage investments involves a higher degree of financial risk and may impact performance. Also, the ability to obtain financing or adverse economic/property conditions impacting debt strategies can affect returns. Direct and indirect purchase of real property and commercial real estate involves significant risk, including, market risks, risks related to the sale of land, risks specific to a given property, principal risk and liquidity risk. These Real estate risks included, but are not limited to regulation and zoning, economic conditions, financial resources of tenants, changes in interest rates and availability of mortgage funds, casualty losses, decreased property values, development and construction risks, and acts of God.
Securities offered through Skyway Capital Markets, LLC (Member FINRA/SIPC )
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