Goodegg Investments, a commercial real estate firm in San Francisco, has acquired two hotel assets via its Goodegg Hotel Fund I and Goodegg Growth Fund II. The Candlewood Suites and Holiday Inn Express in Radcliff, Ky., are close to Fort Knox.
The goals of these recent acquisitions are to provide first-time and experienced investors with the opportunity to diversify outside of multifamily and bolster their overall portfolio with strong cash-flowing assets across multiple markets to minimize risk, as well as create balance, and maximize potential returns, according to the company.
Goodegg Hotel Fund I, just like the real estate firm’s Goodegg Diversification Fund II, which successfully achieved an 11.3 percent investor return in 2022, is designed to acquire prime, select-service hotel assets via a diversified fund. The properties included are select-service rather than full-service hotels that are specifically geared toward business travelers.
The other opportunity offered by Goodegg Investments is its Goodegg Growth Fund II, which gives both accredited and non-accredited investors the chance to invest in its recently acquired two select-service hotels in Kentucky that are five minutes outside Fort Knox, one of the largest military bases in the country. The location will let investors capture hotel stays from government contractors, military personnel and other business travelers.
With a minimum investment of $10,000, both hotels featured in Goodegg Growth Fund II are currently rated 4.5 stars on Tripadvisor across hundreds of reviews. This shows that the properties see high demand and high occupancy but are also operated with a level of efficiency and service that keeps guests happy and coming back for additional stays.
“Given the pent-up demand for travel post-COVID-19, both business and leisure travel have rebounded in a big way, leading to huge opportunities in hotel investments,” Goodegg Investments CEO Julie Lam said in a statement. “With the outstanding performance and strong cash flow of the hotel assets we’ve acquired to date, we are bullish on the hotel sector and anticipate tremendous opportunities in the coming months and years.”