Mehr Investments: Holiday Inn Express (IHG), a College Market Hotel

150% ROI in 3 Years

Stable markets like college towns offer significant upside when paired with the right management and investment team. Mehr identified Holiday Inn Express as an undervalued asset held back by high expenses and inconsistent sales tracking. The property was acquired for $8.8M, then Mehr executed a three-year value-creation plan.

Snapshot

Brand: IHG	Total Equity: $2M (5 Investors)
Total Purchase Price: $8.8M	Minimum Investment Per Investor: $200K-$500K
Hold Period: 3 years	Financing: SBA Loan

The Challenge: Stagnant Growth and Operational Gaps

At acquisition, the property generated $2.1M in revenue but suffered from overstaffing. Sales efforts lacked a clear strategy, and the asset lacked the operational discipline required to maximize its location. Without a change in management, the property faced stagnant growth.

The Mehr Strategy: Three Core Improvements

We focused on three areas to drive the asset's value:

	Labor and Expense Control We introduced standard protocols to align staffing with actual demand. This move significantly reduced payroll costs.
	Sales Transformation We implemented our unique CRM to capture and respond to sales leads and utilized tools like Kalibri to gain market share. This allowed us to capture unrealized demand in the local market.
	Operational Speed We improved property scores and guest response times. These changes allowed us to drive a higher RevPAR.

The Impact (Before vs. After)

Metric	At Acquisition	At Exit (Year 3)	Improvement
Asset Value	$8.8M	$10.8M	+$2M Appreciation
Net Income	Stagnant	~$350k Yearly	+$350k Yield
Total Return	$2M (Equity)	$5M (Total Cash Returned)	+$3.0M Total Profit
ROI	-	150%+	150%+
IRR	-	~40%

The Bottom Line

We outperformed our initial projections, delivering a 2.5x equity multiple by returning $5M in total cash ($3M in net profit) to our investors over a 3-year hold period.

"This deal shows that combining thorough due diligence with a strong operational team creates reliable wealth from underperforming assets."