Deal Overview
A Hilton-Branded Hotel in One of Virginia's Most Recession-Resistant Markets
Astera Hospitality Group is acquiring the DoubleTree by Hilton Harrisonburg — a 143-room, full-service hotel located at 1400 East Market Street in Harrisonburg, Virginia. This is a value-add acquisition anchored by two of the most stable demand drivers in hospitality: a 22,500-student university and a major regional healthcare system.
We are acquiring this asset below replacement cost, completing the Hilton-approved PIP, and self-operating from day one — eliminating third-party management overhead. Our underwriting targets a stabilized NOI of $1.3–1.5M by Year 3, generating strong quarterly distributions and meaningful equity appreciation for our investors.
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Hilton Brand — Global Distribution
The DoubleTree flag provides built-in demand through Hilton Honors (190M+ members), the global reservations system, and brand recognition. We retain the flag through acquisition.
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University Anchor Demand
James Madison University (22,500 students) drives consistent year-round room nights — orientation, graduations, athletics, parents weekends. University markets are among the most recession-resistant in hospitality.
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Healthcare System Demand
Sentara Health — one of the largest healthcare systems in the U.S. — anchors corporate travel demand. Healthcare travel is non-discretionary and holds up in economic downturns.
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Zero New Supply
CoStar confirms zero hotel properties under construction in the Harrisonburg submarket as of July 2026. No new competition entering the market protects our ADR and occupancy recovery.
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Self-Operated from Day One
Astera self-manages every asset we own. Eliminating third-party management overhead of 3–5% of gross revenue directly improves NOI and LP distributions.
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Significant Tax Advantages
Cost segregation on the $2.5M PIP renovation generates substantial Year 1 paper losses — potentially $40,000+ per $100K invested — available to offset passive income on your tax return.
Market Overview
Harrisonburg, Virginia — Demand Doesn't Stop
Harrisonburg sits in Virginia's Shenandoah Valley, less than 2 hours from Washington DC and Richmond. The market is anchored by institutional demand — not leisure travelers who disappear in a downturn.
🎓 James Madison University
22,500+ students. Consistent demand year-round from move-in, orientation, homecoming, athletics, graduation, and faculty travel. University markets have historically outperformed other hotel markets during recessions.
🏥 Sentara Health System
Major healthcare system with 12 Virginia hospitals. Sentara RMH Medical Center serves Harrisonburg — generating steady, non-discretionary corporate travel demand from healthcare professionals, vendors, and administration.
🛣️ I-81 Corridor
Directly off Interstate 81 with excellent visibility and accessibility. Positioned at the crossroads of regional business travel, drive-through leisure, and university-anchored demand on one of Virginia's most trafficked interstates.
🏔️ Shenandoah Valley Tourism
Proximity to Shenandoah National Park, Skyline Drive, and multiple outdoor recreation areas drives meaningful leisure demand — adding a third demand segment beyond university and healthcare.
CoStar Market Data — July 2026
Financial Performance
Historical P&L — Operational Upside
The current operator has declined significantly over the past three years — NOI has fallen 35% from its 2023 peak. This is an operator problem, not a market problem. The market is growing. We are buying an operations issue we know how to fix.
| Metric |
2023 |
2024 |
2025 |
T-12 May '26 |
| Occupancy | 66.0% | 66.3% | 64.2% | 63.4% |
| ADR | $138.60 | $130.11 | $129.17 | $130.80 |
| RevPAR | $91.41 | $86.23 | $82.96 | $82.93 |
| Total Revenue | $5,390,027 | $5,114,263 | $4,876,609 | $4,834,312 |
| NOI | $1,510,579 | $1,165,797 | $1,005,291 | $979,748 |
| NOI Margin | 28.0% | 22.8% | 20.6% | 20.3% |
Our thesis: The market ADR for upscale properties in Harrisonburg is $135.85 (CoStar, 2026) — the DoubleTree is running $130.80. Post-renovation, a Hilton-approved asset should be at or above market. We project ADR recovery to $145+ by Year 3 as the PIP is completed and we implement active revenue management.
Deal Structure
How Your Capital Gets Deployed
Sources
SBA 504 — Senior Debt$4,250,000
Bank Loan$1,700,000
LP Investor Equity$1,700,000
GP Co-Investment (Astera)$850,000
Total Capitalization$8,500,000
Uses
Acquisition Price$8,500,000
PIP / Renovation$2,500,000
Closing Costs$220,000
Working Capital Reserve$300,000
Total All-In Basis$11,520,000
Distribution Waterfall
How Profits Are Distributed
1
Return of Capital
LP investors receive their full capital contribution back before any profit sharing begins.
100% LP
2
Cumulative Preferred Return — 8% Annually
LP investors receive 8% per year on invested capital, paid quarterly. Unpaid amounts accrue and must be paid in full before any GP distributions.
8% / Year
3
Profit Split — Above Preferred Return
Remaining distributable cash after the preferred return is paid splits 70% to LP investors and 30% to Astera as the General Partner.
70% LP / 30% GP
Property Improvement Plan
Hilton-Approved PIP — Full Renovation
Hilton completed their inspection on March 31, 2026 and issued the approved PIP (PIP-011801) dated April 8, 2026. We will complete all required renovations within 18 months of closing — resulting in a fully repositioned, renovation-complete DoubleTree in a growing market.
Guestrooms
Est. $1,144,000
- New carpet throughout all 143 rooms
- Remove textured ceilings — smooth finish
- New mattresses and box springs
- Replace all TVs (Connected Room compatible)
- New top-of-bed product
Guest Bathrooms
Est. $500,500
- Refinish discolored grout on floor tiles
- Replace vinyl wallcovering
- New backlit mirrors throughout
- Replace damaged shower pans
- New artwork in all bathrooms
MEP / Systems
Est. $425,000
- Remove PTAC units — West wing corridors
- Install 100% Make-up Air ventilation system
- CO detectors in laundry and boiler rooms
- LED lighting replacement throughout
Technology & Signage
Est. $155,000
- Connected Room edge controller at every TV
- Full LED signage replacement
- New guestroom number sign package
- Fire/life safety upgrades
Total Estimated PIP Investment
~$2,500,000
How to Invest
Four Steps to Get Started
1
Submit Your Interest
Complete the investor interest form on this page or email us at invest@asterahg.com. Our team will be in touch within 48 hours to discuss the opportunity and confirm your accredited investor status.
2
Sign the NDA & Review Full Materials
After confirming your accredited status, you'll sign a mutual NDA and receive access to the full underwriting package — complete financials, STR data, PIP details, and pro forma projections.
3
Review the PPM with Your Advisor
Our securities attorney-drafted Private Placement Memorandum outlines all material details of the investment. We encourage you to review it with your own CPA or attorney before committing.
4
Execute Subscription Agreement & Wire
Once you're ready, you'll sign the Subscription Agreement and wire your investment. You'll receive portal access immediately for tracking, documents, and updates.
This page is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. This investment opportunity is available exclusively to verified accredited investors as defined under Rule 501 of Regulation D of the Securities Act of 1933. Past performance is not indicative of future results. Projected returns are targets only and are not guaranteed. Investing in private placements involves significant risk including potential loss of principal. Astera Hospitality Group LLC is not registered with the U.S. Securities and Exchange Commission. Any offering will be made pursuant to a Private Placement Memorandum and related subscription documents.