The Springs Retreat Opportunity

The Springs Retreat & Spa: 
Invest In Future Of Wellness Hospitality
Discover an exceptional investment opportunity with impressive projected returns of 30%+ IRR and 3x equity multiple. 

Overview
Why Invest?
Triple Your Capital. Maximize Cash Flow. Minimize Taxes.
Hands-Off Cash Flow: Earn passive income through expert management.

The Opportunity
Outdated Motels → Premium experiential Boutique Hotels
The $1.3T wellness travel wave is accelerating—and expected to hit $8T by 2028.
Investment Summary 
$50k Minimum Investment
10% Preferred Return (for investments of $250K or more)
Target: 30% IRR/3X Equity Multiple


We operate in a booming niche,  with a proven track record of success, having scaled a $10M+ hospitality portfolio, backed by the former Hilton Chairman.
Deal Overview
$1.2M
Purchase Price
Only 24% of $5M+ replacement cost
60%
Seller Financing
6.25% interest-only, 5-year term
30%+
Target IRR
With 3x equity multiple
6.2M
Exit
$681K NOI on stabilized operations
Opportunity to acquire and transform a 59-room property on 9.67 acres in Eureka Springs, Arkansas – a thriving tourist destination undergoing cultural renaissance with $34M+ backing by the Walton Family.
Current: $365K revenue
Poor branding, no marketing, no amenities, outdated property
Target: $1.7M revenue
Repositioned boutique experience
Experiential Resort Transformation
Creating a resort experience with Pickleball courts, a social BBQ lounge area, fireplaces, a game room, mini golf, and a cinema area. 
Leveraging the 9.67 acres of natural landscape to create forest hiking trails, glamping nets suspended among trees, swings and outdoor entertainment areas. 
Wellness-focused facilities including infrared sauna, salt sauna, cold-plunge, Jacuzzi, and social BBQ lounge area.

Bonus Land Use: RV, glamping, weddings, retreats, F&B
Watch Our Vision in Action (HIT PLAY!)
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Sponsor & Team Competency

Jacobo Hernandez
Principal, Lead Sponsor
Serial entrepreneur and author of  the book "Short-Term Rental Secrets", and a leader in the vacation rental and hospitality industry. He scaled and sold a 7-figure e-commerce brand, built a short-term rental portfolio acquired by private equity, and grew a $10M+ hospitality portfolio backed by Hilton's former Chairman.
https://jacobohernandezp.com


Blake Dailey
Boutique Hospitality Advisor
Boutique hotel expert, managing $30M+ in real estate across 4 states and 200+ STR listings. He currently owns and manages a 130-unit boutique hotel in Tennessee, delivering high-performing assets for investors.
Home - Blake Dailey

Sponsor & Team Competency
Michael Wagman
Real Estate Investment & Fund Management Advisor
Co-founder Nimble Capital Group, $80M+ portfolio across multifamily, retail, land; strategically grew Nimble from age 25.

Derek Peterson
Strategic Branding & Real Estate Growth Advisor
Brand strategist for 800+ companies; supported $35B+ in assets and 225,000+ multifamily units across hospitality, real estate, and tech.
Paul Herskovitz
Land Acquisition & Asset Optimization Advisor
Founder of Discount Lots; closed 5,000+ land deals across the U.S.; specializes in undervalued assets and creative structuring for high-ROI real estate.

PROPERTY SNAPSHOT
Vision & Guest Experience

Our Investment Thesis
The Opportunity
We target legacy motels in prime tourist destinations owned by retiring baby boomers that are:

Outdated and under-marketed
Available well below replacement cost
Have no digital marketing, online presence or revenue management
Positioned in high-demand locations


Our Approach
Acquire & Renovate
Transform properties into design-forward boutique hotels
Stabilize & Refinance 
Implementing efficient systems, AI, technology, marketing and automations for consistent guest satisfaction.
Recover initial equity through cash-out refinancing
Cashflow & Exit
Generate returns and exit at peak valuations within 5 years
We develop high end hospitality properties with the efficiencies of short term rentals.
Our Edge
We use marketing, design, tech, and AI to turn overlooked motels into standout boutique hotels built for the digital age.
Online Optimization
Grow our audience and drive bookings with social media, influencers, and digital ads.
AI Agents & Automations
We’ve built custom agents and proprietary software to streamline property management, boost response speed, and cut overhead.
Google & SEO Mastery
Keyword-rich website and ranking on Google. 
Local SEO leverage.
Channel Excellence
Maximize visibility on Airbnb, Vrbo, and Booking.com with smart calendar syncing that ensures cross-platform rate parity.
Revenue Management
Dynamic pricing with manual controls for peak periods, plus multi-horizon tracking to hit revenue and occupancy goals
Why Boutique Hotels?
QUICKER CASH-OUT
Refinance in 2-3 years to recoup a lot (or all) of initial investment. 2-3X in value in 18 months, Increase ADR, Occupancy, improve operations.
ECONOMIES OF SCALE
Cost spread across multiple units.
One set of cleaners
One maintenance team
COMMERCIAL REAL ESTATE
We can force appreciation. Value based on income. Improve operations & income = increase value.
OPERATE REMOTELY
No need for onsite managers.
Many guests prefer the Airbnb check-in/check-out model

INCREASED PROFITABILITY
Boutique hotels command higher room rates and can achieve higher occupancy levels due to their exclusivity and specialized offerings.
TAX BENEFITS
Cost Segregation Studies.
Bonus Depreciation


Massive Tax Write-Offs for Investors
Hotels = Best-in-Class Depreciation VS other real estate asset types

🛏 Lots of FF&E → Faster write-offs via cost segregation
💥 100% Bonus Depreciation → Big Year 1 tax loss
💼 More Deductions → Staff, supplies, marketing
Your Financial Benefit:
Invest $200,000 → Generate approximately $50,000-$70,000 in Year 1 Tax Losses
(Passed through to offset passive income or gains)
= More cash in your pocket. Less to Uncle Sam. Higher after-tax returns.
📌 Disclaimer: Always consult with your tax advisor to understand how these benefits apply to your personal situation.
Why Now?
The Experience Economy:

Today's travelers seek more than standard hotel rooms-they want unique, unforgettable stays.
Boutique hotels offer curated, personalized experiences
Why Eureka Springs
Destination Overview
Nestled in the Ozark Mountains, Eureka Springs is a historic Victorian town known for its natural springs, vibrant arts scene, and year-round tourism.
Often called the “Little Switzerland of the Ozarks" walkable downtown with unique architecture, spas, galleries, and quirky charm.
Cultural Renaissance
$34M Walton Family Foundation grant (backed by Alice Walton) funded a new 300-seat Opera in the Ozarks theater (opened June 2025), cementing the town as a regional arts hub.
Adventure Destination
World-class mountain biking trails, hiking, ziplining, cavern tours, and water activities at Beaver Lake position the area as an outdoor enthusiast's paradise.
Why Eureka Springs?
The Opportunity: A Market Ripe For Conversion
Strategic Location
Eureka Springs is strategically located within a 5-hour drive of major metro areas across four states, giving access to over 4 million residents—making it ideal for boutique hospitality and regional tourism. 
Outdated Supply, Strong Demand
Despite strong ADRs ranging from $70-250/+ night, Eureka Springs lodging consists primarily of outdated motels and basic inns lacking amenities.
Strong Fundamentals
Eureka attracts ≈1M tourist visitors per year. Paradise for nature, wellness and adventure seekers. Short term rentals regulated.
Largest Regional Markets Within 5-Hour Drive
Dallas: 1.3M residents
Oklahoma City: 716K residents
Memphis: 608K residents
Kansas City: 512K residents
Tulsa: 411K residents
Market Opportunity
There is no modern, design-driven boutique hotel offering wellness amenities, immersive nature, or premium guest experiences. This presents a compelling opportunity to create a flagship destination in an underserved market.
Why This Is a Unique Deal
1
Exceptional Seller Financing 
60% seller financing at 6.25% interest-only—just $3,750/month in debt service. The property’s current cash flow fully covers all operating expenses, payroll and the seller-financed note, making it a self-sustaining investment.

2
Remarkable Value Proposition
$20K per door vs. $40K+ market average
$1.2M purchase price VS $5M replacement cost
3
Significant Upside Potential
$2.8M total project cost
~$6.2 M projected stabilized value (11% cap rate)
A rare opportunity combining favorable financing, below-market acquisition price, and substantial value-add potential with minimal downside risk.
Previous Sample Projects (We've Done This Before…)


Financial Underwriting
Note:
This underwriting is deliberately conservative, based on comps from dated 3-star motels. Once repositioned, we believe the asset can achieve ADRs near $200/night—implying a potential ~$8M valuation.
We’ve chosen lower assumptions to preserve a strong margin of safety and minimize downside risk.
Upside from additional revenue streams—like weddings, RVs, glamping, and events—is not included.
Sensitivity Analysis

Even under a downside scenario 4—assuming 50% occupancy and a $115 ADR—the property’s implied value of $4.2 million still exceeds the maximum total project cost of $2.8 million, preserving significant equity in the deal.
Untapped Upside Not Included in Underwriting
Our conservative financial projections don't account for these high-margin extra revenue streams that could substantially increase property value:
RV Sites (20 Pads)
$237,250 annual revenue potential from 20 RV pads at $65 ADR with 50% occupancy. Low development costs with high returns.
Luxury Treehouses
Zoning already permits treehouse construction. These unique accommodations command premium rates, creating significant ADR uplift with minimal footprint.
Camping & Glamping
Low-cost implementation of primitive camping sites and luxury tents to capture the outdoor travel segment while maximizing natural terrain.
Weddings & Events
Just 4 weddings monthly at $5,000 each adds $240,000 annually direct to NOI. The property's natural beauty creates a perfect wedding backdrop.
Farm-to-Table Restaurant
Zoning allows for a restaurant with indoor-outdoor seating and forest views. A farm-to-table concept enhances the guest experience while generating strong food and beverage revenue and aligning with wellness-focused branding.

Financial Underwriting

Year 1: Value-Add Strategies
Our first-year improvements transform this hidden gem into a modern hospitality powerhouse.
Implement Revenue Management
Integrate dynamic pricing software to optimize ADR and maximize occupancy.
Automate Operations to Cut Costs and Boost Profits
Integrate AI agents for guest messaging, smart locks for 24/7 self-check-in, and virtual assistants for back office support—cut overhead, boost efficiency, and increase profitability.
Marketing Enhancement
Build a customer database for remarketing. Launch a direct-booking site to boost visibility and repeat stays. Drive traffic through SEO, ads, and influencer partnerships.
Strategic Rebranding & Design
Updating property name and positioning as an experiential resort. Appeals to modern travelers seeking authentic experiences.
Renovation Timeline & Phasing
Total Duration: ~8 months/ Acquisition Close September 2025 
Pre-Construction & Permitting
Weeks 1-3 to finalize designs and mobilize teams.
Core Renovation
Weeks 3-18 phased room renovations
Amenity Upgrades
Weeks 4-16 for pool resurfacing and exterior enhancements.
FF&E Installation
Weeks 17-20  to install furniture and complete systems testing.
Buffer & Soft-Opening
Weeks 21-24 for final inspections and invitation-only previews.
2 month schedule buffer built into all critical paths to ensure timely completion.
Refinance & Exit Strategy
36-Month Seller Finance
Interest-only financing preserves cash flow during renovation and stabilization.

Stabilization Metrics
Achieve critical financial targets by month 36.
Year 3 Revenue: $1,803,610
NOI (39%): $ 650,833
Valuation: $5,916,663 (11% cap rate)
Year 3 Equity Recapture (Optional)
Refinance with 40-50% LTV conventional mortgage 
Repays seller finance loan completely
Returns ~100% of initial equity to investors 
Maintains positive cash flow under new debt service
Year 5 Sale
Projected exit at $6.2M optimizes investor returns.
Continued operational improvements
Market appreciation captured by equity holders
Enhanced returns from branding and operational efficiencies
Given our low, interest-only payments under the seller financing terms, we have the flexibility to extend the loan term from 3 to 5 years. This gives us the option to pursue a direct exit—without refinancing—depending on market conditions and interest rate trends at the 3-year mark. Our top priority is to maximize investor returns while strategically limiting downside risk and preserving capital.
Risk Mitigation Strategies
Favorable Seller Financing
Interest-only payments of just $3,750 monthly with impressive 8x+ debt coverage ratio, providing substantial cushion for operations.
Conservative Underwriting
Sensitivity analysis confirms positive equity even in downside scenarios. Property value exceeds costs even with reduced ADR and occupancy.
Built-In Equity
Acquisition below replacement cost creates immediate equity position. Ultra-low leverage & debt service payments significantly reduces risk of capital loss.
Flexible Terms
24-month extension option on seller financing provides operational flexibility and enhances liquidity position during stabilization.
Phased Renovation
Strategic room-by-room renovation approach maintains cash flow throughout improvement process, minimizing operational disruption.
Investment Offering
1
Silver Tier| 8% Pref : 50/50 Split
Entry-level investment at $50,000 minimum with 8% preferred return. After pref is met and capital returned, profits split equally between investors and sponsors. 
2
Gold Tier | 8% Pref : 60/40 Split
$100,000 minimum investment with enhanced 60/40 profit sharing after 8% preferred return.  Includes 2 complimentary nights/year at the hotel.
3
Platinum Tier | 10% Pref : 70/30 Split
Premium tier at $250,000 minimum featuring higher 10% preferred return and favorable 70/30 profit sharing. Includes 5 complimentary nights/year at the hotel.

All investment tiers feature preferred equity structure with accrued returns paid before profit distribution. Higher investment levels unlock improved returns and profit-sharing ratios, maximizing potential upside in The Springs Retreat & Spa transformation.
Syndication
The General partners manages all facets of the project: acquisition, development, operations, refinance and eventual disposition. The GPs are the sole guarantors of the loan and have all the liability. 
The LP's are passive investors with limited liability. 

Benefits of Syndication for Limited Partners
1
Passive Income & Professional Management
Receive regular cash flow without active involvement while experienced team handle all operational aspects.
2
Tax Advantages & Preferred Returns
Benefit from depreciation deductions that reduce taxable income. LPs receive distributions before GPs share in profits.
3
Risk Mitigation & Diversification
Access larger, more profitable properties with pooled capital, reducing individual exposure while diversifying your portfolio.
4
Equity Growth & Appreciation
Capture significant upside through value-add strategies and market appreciation without hands-on management responsibilities.
Limited partners enjoy the benefits of real estate investing without the liability or management burden, maintaining truly passive involvement while the property builds wealth.
Returns (5 year hold)

Worst Case Example ($250k Invested)

Base Case Example ($250k Invested)

Best Example ($250k Invested)

Investor Waterfall Explained
The general partners are the last to get paid. Priority is to return investor capital and the promised return before the 70/30 split kicks in.
1
2
1
LP Preferred Return
8-10% annual preferred return on invested capital is distributed first.
Prioritizes investors before any profit-sharing
Calculated quarterly on total investment
Accrues before other distributions
2
Profit Split (Promote)
Remaining profits split between investors and deal sponsor.
Tier split favoring limited partners
Activated only after preferred return 
Aligns sponsor interests with performance
Reporting, Transparency, and Governance
Financial Oversight
Regular audited financials ensuring accountability
Monthly fund and property performance updates
Third-party fund administrator for impartial operations
Governance Structure
Dedicated Investment Committee overseeing all decisions
Advisory Council of industry experts providing guidance
Key Man Policy ensuring business continuity protection
Investor Communication
Comprehensive quarterly investor reports
Secure 24/7 online portal access to all investment data
Our governance framework ensures complete transparency and real-time performance tracking throughout the investment lifecycle.
Next Steps
1. Review Documents
Carefully review the Private Placement Memorandum, Operating Agreement, and Subscription Agreement for complete investment terms.
2. Access Deal Portal
Log into our secure online investor portal to complete your soft commitment and save your spot. Limited spots available.
3. Sign & Verify
Electronically sign the Subscription Agreement and complete accreditation verification through our streamlined portal process.
4. Wire Funds
Transfer your investment amount to the designated escrow account (wire instructions provided in portal).
Our team is available to answer questions throughout this process. We aim to close on The Traveler's Inn acquisition by September 2025, with limited partnership slots available.

Schedule Investment Call
Reserve Your Spot
Watch Our Last Hotel Project Execution
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PR & NEWS
Forbes Scotland
When Digital Algorithms Meet Physical Properties: Jacobo's Billion-Dollar Vision - Forbes Scotland
Traditional hospitality groups have long focused on operations. But few have leaned into what today’s traveler actually craves: a unique, memorable,

Appendix & Contact
Full Pro Forma Model, Site/Floor Plans & Renderings, and Market Reports available upon request.
Contact: Jacobo Hernandez, Principal, The Vesta Group™
jacobo@thevestagroupco.com | (786) 501-4666
Deal Disclaimer
The information presented in this pitch deck is intended solely for informational purposes and does not constitute an offer to sell or solicit any investment. All figures, projections, and assumptions are based on current market conditions and subject to change. We make no representations or warranties regarding the accuracy or completeness of the data provided.
Investors should conduct their own due diligence and seek independent financial, legal, and tax advice prior to making any investment decision. Past performance is not indicative of future results, and the investment opportunities presented carry risks, including the potential loss of capital.
The offering is subject to applicable securities laws and may be limited to qualified investors as defined by relevant regulatory authorities. We reserve the right to modify or withdraw any proposed terms at our discretion.
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