Guesthouse addresses a gap no one has solved at scale: 67% of travelers book multiple rooms at once, yet no purpose-built product exists for group travel. Traditional hotels can't retrofit their physical constraints. Vacation rentals lack operational infrastructure. Guesthouse builds distributed hotel campuses — multiple properties within a 15-minute radius, anchored by a central Hall with a commercial kitchen, concierge, and shared amenities.

Campus #1 in Truckee, California is operational. Palm Springs Manor is Campus #2 — chosen specifically for its complementary seasonality (Palm Springs peaks Oct–May; Tahoe peaks Jun–Sep), central location, pool and clubhouse infrastructure, and a seller willing to carry 61% of the purchase price at 5%.

$33K in escrow. 19 tenants pay $30,700/month — property is cash flow positive from Day 1. Kitchen activated to add value. No tenant displacement during this phase.

CUP application. Hall construction planning. Rental income continues. Entitlements in hand raise property value to $4.4M (Colliers stabilized multifamily).

Clubhouse → The Hall. Perimeter units → 17 hotel keys. Stabilized at $2.85M revenue, $1.1M NOI, $7.5M value (Colliers hotel conversion).

Options A, B, or C are all acceptable structures for this offering. Guesthouse will work with each investor to confirm the right fit. Option D is available for the Phase 2 construction period and is not part of this raise.

Palm Springs is one of Southern California's most durable hospitality markets — not dependent on a single event or employer, but layered with structural demand across leisure, cultural, and event segments. The Greater Palm Springs region attracts over 14 million visitors annually with an $8.7 billion total economic impact (2022, Tourism Economics / Visit GPS). Tourism supports 1 in 4 jobs in the Coachella Valley.

Peak season runs October through May — the inverse of Lake Tahoe's winter/summer peaks. A portfolio holding both markets smooths revenue across all 12 months of the year. The Coachella Valley Music & Arts Festival alone drives peak ADRs above $490 across both weekends, with Stagecoach the following weekend sustaining demand into late April.

The Guesthouse dual-campus strategy is built around complementary seasonality. Tahoe peaks in winter (ski) and summer (outdoor). Palm Springs peaks in fall and spring (weather, events). Combined, the platform operates at high utilization across all four seasons — reducing the volatility inherent to single-market resort hospitality.

The boutique hotel segment in Palm Springs commands significant premiums over branded product. New entrants (Kimpton Rowan, ARRIVE, Andaz) have elevated the market's rate positioning. Boutique hotels consistently achieve $7.5–8.5% cap rates on stabilized NOI — supporting PSM's $7.5M exit valuation on $1.1M stabilized NOI at an 8% exit cap (Colliers). Palm Springs also benefits from restrictive STR regulations that limit competing short-term rental supply, creating structural demand for quality hotel product.

Palm Springs Manor is a classic courtyard compound originally developed in two phases — 1956 and 1963 — at the height of Palm Springs' mid-century boom. Four low-rise residential buildings are arranged around a central pool and clubhouse area, creating a natural campus footprint that maps almost precisely to the Guesthouse hub-and-spoke model without structural modification.

The site spans three contiguous APNs (507-061-017, 018, 019) totaling approximately 0.75 acres. Current R-3 Multi-Family zoning supports both the in-place residential use and the planned conversion to boutique hospitality, subject to a conditional use permit. The property is located in central Palm Springs within walking distance of Palm Canyon Drive, the city's primary commercial corridor.

The property is fully tenanted and income-producing, generating $30,700/month in gross rental income across 19 units. Buildings are structurally sound and in operating condition; interior finishes are dated to the existing residential use and will be renovated to Guesthouse hospitality standard during conversion. No material deferred maintenance has been identified in preliminary review.

Mid-century masonry and concrete construction typical of the era provides excellent thermal mass for the desert climate — a structural asset that supports energy efficiency and aligns with the property's design-forward positioning. The courtyard layout, mature landscaping, and original pool infrastructure are retained features of the conversion program.

Two of nineteen units are repositioned as back-of-house and common amenity space, converting the campus from 19 residential units to 17 boutique hospitality keys. This reflects Guesthouse's standard practice of designating 10–15% of unit count to guest experience infrastructure — pantry, gear storage, staff operations — that drives the premium service model. The two-unit reduction is more than offset by the revenue premium hospitality keys command over residential rents.

Palm Springs Manor was built for group hospitality before the concept had a name. The courtyard layout — four buildings facing inward around a shared pool — is the physical embodiment of the Guesthouse campus model. No structural reconfiguration is required to deliver the experience. The pool and clubhouse serve as a natural Hall precursor. The 30+ on-site parking spaces are exceptional for central Palm Springs, where street parking is scarce and valet is standard at most boutique hotels. The mid-century concrete and masonry construction provides excellent thermal mass, keeping the campus cool during desert summers without energy-intensive mechanical systems. Within 100 meters of Palm Canyon Drive, yet set back from street noise — positioned exactly where guests want to be, without the tradeoffs that position usually demands.

Based on $1.096M stabilized NOI. Note on two valuation figures: Colliers appraised the converted property at $7.5M using current market hotel rents at time of appraisal. The $13.75M exit reflects Guesthouse's projected stabilized NOI of $1.096M at an 8% cap rate — the premium a fully operational Guesthouse campus commands once the brand, membership base, and F&B are established. Think of $7.5M as the floor (hotel conversion value at current rents) and $13.75M as the ceiling (Guesthouse-operated stabilized value).

The conversion of Palm Springs Manor from multifamily residential to boutique hotel use requires a Conditional Use Permit (CUP) from the City of Palm Springs. CUP approval is not guaranteed. The City may impose conditions, require design modifications, or deny the application. Delays in permitting would extend the pre-revenue period and increase carrying costs. Guesthouse has engaged local planning counsel and has reviewed the site's compatibility with Palm Springs' hospitality zoning priorities, but no assurance of approval can be given.

Renovation cost estimates ($4M total: $2M Hall, $1.5M Boarding House, $500K contingency) are based on current preliminary plans. Actual costs may exceed estimates due to unforeseen structural conditions, material price changes, or scope modifications required by permitting. A 20% cost overrun would add approximately $800K to total project cost and reduce projected returns.

The existing kitchen will be made operational during Phase 1 as a value-add measure. Revenue projections for kitchen operations have not yet been formally modeled. Investors should not assign material value to this revenue stream until a pro forma is developed and reviewed.

19 month-to-month tenants currently occupy the property. While month-to-month tenancies provide legal flexibility for conversion, California tenant protections require proper notice and may entitle certain tenants to relocation assistance. Extended holdovers or disputes could delay construction timelines. Guesthouse intends to handle tenant transitions respectfully and in full compliance with applicable law.

Guesthouse has one operational campus (Truckee, CA). The distributed hotel model has not yet been validated at full stabilization or across multiple markets. Projections for Palm Springs are based in part on Truckee operating assumptions and management's judgment. Past performance of other ventures does not guarantee the performance of this investment.

The Phase 1 acquisition capital stack ($3.875M) is fully defined. The Phase 2 renovation capital (~$3.875M) is not part of this offering and will be raised separately after CUP approval. The planned structure is a construction loan (~$2.5M from a regional lender, secured against the entitled asset) plus equity co-invest (~$1.375M from Option C/D investors). If renovation financing is not secured on acceptable terms, the development timeline would be delayed. Investors in this Phase 1 offering should not assume renovation capital is committed.

Stabilized revenue ($2.85M), NOI ($1.096M), and exit valuation ($7.5M) projections are based on management estimates and a Colliers appraisal. Actual results may vary materially. Hotel occupancy, ADR, and operating expenses are subject to market conditions, competitive dynamics, and operational execution. The 5-Year IRR of ~18% is a projection, not a guarantee.

Palm Springs boutique hotel performance is subject to economic cycles, event cancellations (Coachella, Stagecoach), and competitive new supply. Additional STR regulation changes in Palm Springs could alter the competitive landscape and comparable set used to underwrite exit valuations.

Exit valuations assume an 8% cap rate on stabilized NOI. An increase in prevailing cap rates to 9% would reduce the implied exit value from $13.75M to $12.2M — a difference of approximately $1.55M. Investors in equity structures should understand that returns are sensitive to exit cap rate assumptions.

This investment is illiquid. There is no established secondary market for interests in this offering. Investors should expect to hold their investment through the development and stabilization period (estimated 24–36 months minimum) and should not invest capital they may need in the near term.

Contact Trevor Cornwell directly to indicate your interest and preferred investment structure (A, B, C, or D). Include your target commitment size. An NDA will be provided if you have not already signed one.

Upon receipt of a signed NDA, you will receive access to the data room, which includes the Colliers appraisal, rent roll, PSA, and title information. Financial model available upon request.

Submit a non-binding Letter of Intent indicating structure, amount, and any conditions. Guesthouse will respond within 48 hours with a term sheet or clarifying questions.

Guesthouse counsel (Hayes & Boone) will provide definitive offering documents including the subscription agreement, operating agreement, and applicable securities disclosure. Capital is wired upon execution.