NexPoint Lodging I DST

Investment Description

NexPoint believes extended stay hotels offer strong financial advantages in todays hospitality market, fueled by rising demand for flexible, long-term lodging. These properties often see higher occupancy and lower turnover costs than traditional hotels, as longer stays reduce expenses like housekeeping and marketing.1 With the rise of remote work, corporate travel, and relocations, NexPoint believes extended stay hotels continue to attract business and leisure travelers, making them a resilient, cost-effective investment in a shifting market.

Business Plan

The principal objectives of the Trust are to (i) preserve the Holders’ capital investment, (ii) make monthly distributions from rent payments received through the Trust pursuant to the Master Lease which may be partially tax-deferred as a result of depreciation and amortization expenses depending on the Holder, (iii) capitalize on strong demographics, population and economic growth, hotel demand drivers and thriving economic conditions in the Salt Lake City MSA, (iv) rely on the Master Tenant to increase the net operating income of the Property through growth in RevPAR and ADR rates, maintenance of high guest occupancy, implementation and maintenance of expense controls by professional property management, and institutional-quality asset management, (v) rely on the Master Tenant to comply with the terms of the Franchise Agreement and the property improvement plan required by the franchisor, and (vi) receive sale proceeds from the Trust when the Trust sells the Property within approximately five (5) to ten (10) years. There can be no assurance that any of these objectives will be achieved.