NEWSLETTER AT A GLANCE
Hotel Mastermind
I recently got back from a Hotel Owner and Launch mastermind in Tennessee with over 40 hotel owners and operators. The group included traditional hotel operators as well as Airbnb hosts with 30+ units and healthy cash flow. The quality of the group was high (everyone paid $2.5k–$25k + Travel costs to participate), and they were super transparent around performance, returns, and challenges. After two full days reviewing deals and operating strategies from A frame cabin developments, wedding venues, traditional hotels and high density capsule hotels, it reinforced our conviction that we are looking at the right deals and getting much higher volume of off market deals than anyone else.
We all shared notes on our strategies and had become good friends by the end of the weekend.
Kevin’s Background & Carlos Saavedra
As you may know, I am the Launch Director at LaunchBoom, a boutique marketing agency focused on launching hotels and resorts. My team and I have launched 20+ micro-resort projects, generating ~$11M in bookings before a single shovel began construction. These projects have achieved average daily rates (ADRs) in the $500–$1,000+ range, creating a strong dataset to inform our underwriting and investment. This also helped them maximize returns for investors and to get better terms from banks/investors by showing validation of demand and average daily rates. There are 32 more micro-resort projects in the pipeline that haven't launched yet and I've had the opportunity to learn from their mistakes and successes.
The ability to generate revenue and validate demand prior to construction has proven to be a key lever in improving financing terms and reducing risk for the types of projects I am targeting. Here are a few of them:
I've also brought on a good friend, Carlos Saavedra, to help with the due diligence on these deals. We originally began looking at developing a tiny house village in the Santa Cruz mountains back in 2019. COVID temporarily shifted our focus, Carlos attended and graduated with a Masters in Finance from London Business School and launched a tech startup, while I helped build out the real estate marketing arm of LaunchBoom and invested in Airbnbs instead.
We are currently in discussions with several leading operators in this niche. Early case studies and market dynamics suggest the potential for outsized returns driven by a combination of strong average daily rates (ADRs), low cost basis, and favorable supply/demand characteristics.
Case study reference:
Live Oak Lakes in Waco Texas selling 7 cabins for $7MM with a $550K net operating income and ~$1M revenue: https://www.isaacjfrench.com/newsletter/blog-thestoryofliveoaklake
Current Investment Focus
Boutique hotels, wellness resorts, glamping / experiential hospitality
Drive-to leisure markets (2–3 hours from major metro areas)
High natural amenity locations (mountains, lakes, wine regions, national parks)
Off-market or lightly intermediated opportunities
Value-add, or adaptive reuse to increase ADRs with addition of key wellness amenities like Himalayan salt saunas, cold plunges, hot tubs, red light therapy, floatation tanks
Older mom and pop owners that don’t use technology to run their property and marketing
Targeting 15–25%+ levered IRR, 10-15% cash on cash returns
Focus on early capital return (Refinance cash out within 3–5 years)
Deals in Progress
Here are some of the deals we are currently working on:
Mountain Meadows Retreat Center
Calaveras County · Off Market Joint Venture
OVERVIEW
120 acres in Calaveras County (2.5 hours from San Francisco)
To create a one of a kind nature retreat for couples and families with 10-30 structures (A-frames, cabins, treehouses, domes)
Wellness-oriented positioning with strong natural amenity base
Amenities include: Himalayan salt sauna, cold plunge, hot tub, outdoor baths and showers, red light therapy, and a outdoor yoga pavilion
Beautiful property with a natural spring that makes you feel like you’re the only person out there in the forest
Successful wedding venue nearby with unpermitted structures is being profitably rented out as short-term rentals
Existing operator (contractor) with initial improvements in place
Current mortgage payment on the land is <$1600/month
BUSINESS PLAN
Underwriting average daily rate (ADR) ~$250 at ~55% stabilized occupancy
Phased development → stabilization → refinance within ~3 years
Targeting 75-100% capital return via refinance with ongoing distributions
18% cash-on-cash returns (stabilized)
CURRENT STATUS
We are currently analyzing the mixture of units to maximize cash on cash returns and position the property for a full cash out refinance within 3 years.
Meeting with the county departments on April 7th to ensure our development plans would be approved prior to moving forward.
Riverfront RV Park
Distress Probate Sale - $2,700,000
OVERVIEW
21 acres with river frontage (1 hour 20 minutes from San Francisco, wine country)
Direct access to the river for tubing kayaking and water activities
Existing cash-flowing operations with limited management and no formal marketing
NEAR-TERM (OPERATIONAL LIFT)
At current operations, by taking credit card payments and investing into marketing, the net operating income should double at a minimum therefore doubling the value of the property with very minimal improvements
40 RV sites that can be converted into 20-30 luxury cabins that generate $250-$350 average daily rates (ADR)
80 camp sites that can be converted into 20-40 luxury glamping sites generating $100 average daily rate (ADR)
Introduce amenities (wellness, events) to increase revenue per guest and attract higher end clientele (SF tech)
Massive increase in property value allowing for 100% return of capital within 3 years and continued 12%+ annualized returns paid indefinitely to investors
STATUS
The property is in probate (meaning the previous owner passed away)
Speaking to lenders about financing of the purchase
Currently speaking to the broker representing seller to verify financials
Speaking to the county about zoning and permits to operate this as a cabin and glamping resort
Smoky Mountains Lodge
Off Market Joint Venture - $2,160,000
OVERVIEW
17-key operating units that are profitable
At the south entrance of the Smoky Mountains National Park (most visited national park in the US)
20 minutes to major attractions like Cades Cove and major viewpoints at the south side of the park
STATUS
Reviewing the cost for improvements/ upgrades
Reviewing comparable rents in the area to see what the upside to increase cashflow and property value is
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