67% of all travel involves booking 2+ rooms—yet zero dedicated, scalable solutions exist

Investment Memorandum · January 2026

An Asymmetric Opportunity in Luxury Group Hospitality

High-net-worth group travel in supply-constrained lifestyle markets. Real estate collateral enables a safe position for OpCo venture upside.

As Featured In Forbes Travel + Leisure Veranda Hospitality Design Skift

$6M

Capital Raise

$11M

Property Value

1.8×

Asset Coverage

8-10×

Platform Exit Multiple

The Company

Premier Destinations for Purposeful Gatherings

The privacy of home meets the amenities of a boutique hotel

Guesthouse is a premier collection of members-only destinations for personalized group stays and bespoke retreats. With the warmth of home and the amenities of a boutique hotel, we offer design-driven spaces that inspire creativity, collaboration, and meaningful gatherings.

Personalized hospitality is our hallmark: in-home meals from a private chef, curated partnerships with local restaurants, gold passes to Tahoe resorts, private transportation, and a dedicated 24/7 house captain.

Guesthouse Lake Tahoe Campus #1

$2,887

AADR

4,200

Square Feet

10

Guests

Audience Segments:

Multi-Gen Families

Corporate Leaders

Creative Professionals

Affluent Leisure Travelers

Design Partners:

Ryan Group Architects · Halfdan Pedersen · Olympia Pearl Design · Michael Hsu Office of Architecture

Coming Q1 2026

Palm Springs Manor

Campus #2 · 19 Units · Desert Seasonality

Design Innovation

Bjarke Ingels Group

The GATHER room at center—where groups come together—surrounded by RESET bedrooms, WASH, COLLAB, and PREP spaces.

2,185

Interior SF

9,000

Lot SF

Horan House · Downtown Truckee

Press Validation

The Industry is Taking Notice

Pre-opening coverage from leading travel and hospitality publications

Travel + Leisure

"The concept reimagines how groups travel together, bringing hotel-grade amenities to private accommodations in one of America's most desirable mountain destinations."

Read Article →

Forbes

"Guesthouse Lake Tahoe represents a new category in luxury hospitality—one that serves the 67% of travelers who book multiple rooms but have historically been underserved."

Read Article →

Hospitality Design

"A masterful blend of residential comfort and boutique hotel sophistication, with interiors that feel both aspirational and deeply personal."

Read Article →

Skift

"Named one of 50 Travel Companies to Watch in 2025 for its innovative approach to group hospitality."

Read Article →

The Distributed Hotel: Hub & Spoke Model

Centralized operations unlock 200-300 basis points of margin improvement over standard STR

The Hall Hub

Property 1

Property 2

Property 3

Property 4

Property 5

+ More

The Hub Delivers

Commissary Kitchen 85% F&B Margin

Central Housekeeping 40% Labor Savings

Technology Stack Unified Guest Experience

15-Minute Radius 8-10 Properties/Hub

The Alpha

Captures 85% of guest services vs. 6-9% traditional PM take rate

The Platform: Two Complementary Markets

1

Lake Tahoe

Mountain · Peak: Dec-Mar

Hall (Hub) Guesthouse

+

Complements

2

Palm Springs

Desert · Peak: Oct-May

Hall (Hub) Guesthouse Boarding House

Guesthouse Network

A hub services 4-5 Guesthouses spread into various constellations

Each Guesthouse connects back to the Hub for F&B, housekeeping, and guest services—creating operational leverage that standalone properties cannot achieve.

Structural Moats Create Durable Returns

Defensible positions that competitors cannot easily replicate

Supply-Constrained Markets

Lifestyle destinations within 180 miles of major metros. Zero premium downtown hotels in Truckee despite >$900/night hotel rates. Natural barriers limit new development.

65%+

STR Occupancy vs. 55% National

Premium Rate Power

Corporate stays represent 25% of Lake Tahoe bookings—no purpose-built group product exists. Guesthouse captures this underserved demand.

2.3×

Rate Premium vs. National

Regulatory Advantage

DMUR zoning enables hospitality operations on residential properties. Grandfathered status reduces regulatory risk that constrains STR markets.

+6%

Annual Appreciation (10yr)

The Market Gap

67% of travel involves 2+ rooms. Zero premium downtown hotels in Truckee. Average hotel rate >$900/night. The demand is proven—we're building the supply.

3-Hour Drive Radius

Target Demographics

Corporate Retreat Market

$511 Billion

Projected by 2030

Target Customers

Series B+ Startups · PE Portfolio Cos · Creative Agencies

Meta Google Amazon Netflix Salesforce Dropbox Figma Intel Disney Notion Slack Pixar

Real Assets. Proven Demand. Venture Upside.

A portfolio of hospitality properties in institutional-quality positions

Why This Structure

A typical venture note offers ~20% discount with no collateral. A typical RE mezz loan offers 12-15% yield with no equity upside. This instrument delivers both: $11M in real estate provides a secure floor while conversion captures ~10% of a company targeting $850M terminal value.

Proceeds → Equity Conversion

Horan House (10403 High) $1.2M Mezz

Titus House (10382 Donner) $1.4M Seller Financing

Vacant Land (10393 High) $300K Equity

Palm Springs Manor $1.5M Equity*

PropCo Total $4.4M

Operating Company

Working Capital (per model) $1,600,000

Current Equity 100% Founder

Pre-money Valuation (SAFE) $8,000,000

Target Revenue Y3 $54.9M

Target NOI Y3 $12.6M

OpCo Need $1.6M

Property Values (Collateral Backing)

Current

Upside

Horan House (10403 High)

$4.6M

$8.0M @ 5.5% Cap

Titus House (10382 Donner)

$2.2M

$3.0M Post-Reno

Vacant Land (10393 High)

$300K

$1.0M Post-Improve

Palm Springs Manor

$3.875M

$5.875M Post-Improve

Total Property Value

$10.975M

$17.875M

1.83×

Current Coverage

2.98×

Upside Coverage

Sources: Appraisals 2024, Colliers, Internal Analysis

The Instrument: Secured Convertible Note

Real asset security with full operating company upside—junior only to bank financing

Illustrative Term Sheet

InstrumentSecured Convertible Promissory Note

Principal$6.0M (target)

Interest Rate10% simple, accruing

Maturity36 months

Conversion Discount20% to next qualified financing

Valuation Cap$8M pre-money

SecurityCross-collateralized RE pool

SubordinationJunior to bank financing only

CovenantNo additional senior debt

Security & Conversion Summary

$11M

Property Value

1.83×

Coverage Ratio

At Conversion: Security releases upon qualified financing. Note converts to equity at 20% discount or $8M cap (whichever is more favorable to investor).

Asymmetric Returns: Asset Floor, Venture Ceiling

Real estate collateral provides a floor while conversion captures full OpCo upside

Floor

RE Liquidation

What Happens

OpCo fails; RE assets sold

$6M Returns

$6.0M + accrued

Multiple / IRR

1.0-1.3× / ~10%

Security

✓ Enforced

Base Case

Series A Conversion

What Happens

Series A at $20M pre

$6M Returns

~$12-15M

Multiple / IRR

2-2.5× / ~35-45%

Security

Released

Ceiling

Platform Exit

What Happens

100 hubs; $850M exit

$6M Returns

~$50-70M

Multiple / IRR

8-10× / ~85%+

Security

Released

Why This Structure

A typical venture note offers ~20% discount with no collateral. A typical RE mezz loan offers 12-15% yield with no equity upside. This instrument delivers both: $11M in real estate provides a secure floor while conversion captures ~10% of a company targeting $850M terminal value.

Collateral Secures the Floor

Cross-collateralized pool provides 1.83× current coverage—growing to 2.98× post-improvements

Proceeds → Equity Conversion

Horan House (10403 High) $1.2M Mezz

Titus House (10382 Donner) $1.4M Seller Financing

Vacant Land (10393 High) $300K Equity

Palm Springs Manor $1.5M Equity*

Total Capital Deployed $4.4M

*Palm Springs: $3.875M purchase price, $2.375M seller financing at 5.0% (61% LTV)

Property Values (Collateral Backing)

Current

Upside

Horan House $4.6M → $8.0M

Titus House $2.2M → $3.0M

Vacant Land $300K → $1.0M

Palm Springs Manor $3.875M → $5.875M

Total Property Value $10.975M → $17.875M

1.83×

Current Coverage

2.98×

Upside Coverage

Capital Deploys Across Two Campuses

Truckee + Palm Springs creates proof of platform

PropCo Deployment $4.4M

10403 High St Mezz Payoff$1,200,000

10382 Donner Pass Seller Note$1,400,000

10393 High St (Land)$300,000

486 E Mel Ave, Palm Springs$1,500,000

OpCo Deployment $1.6M

Working Capital (12-mo runway)$800,000

Pantry/Hall Buildout (Titus)$300,000

Technology Platform (Phase 1)$200,000

Team Expansion (Ops + Sales)$200,000

Marketing / Member Acquisition$100,000

1

TRUCKEE

Proof

+

2

PALM SPRINGS

Platform

—▶

100

HUBS

The Investment Thesis

An asymmetric opportunity: real asset security enables a safe position for venture upside

The Instrument

$6M Secured Convertible Note

Interest10% accruing

Maturity36 months

Security$11M RE pool

Conversion20% / $8M cap

Risk / Reward Profile

1.8×

Floor (Asset Coverage)

8-10×

Ceiling (Platform Exit)

Why Now

Two campuses transforms Guesthouse from a project into a platform—and from an early-stage investment into an acquisition target.