Allencrest is designed to hold hotel assets through Hotels Holdings, a portfolio parent structured to be single-purpose and bankruptcy-remote per lender requirements. When hotels are acquired, each property will sit in its own SPE to achieve clean lender-ready structure, arm’s-length intercompany agreements, and brand-compliant franchise relationships.
Hotels Holdings is a pure holding company. It does not manage hotel operations (that is Allencrest Hospitality Operations) and it does not hold investor capital (that is Fund I). Its single function is to serve as the legal parent of the hotel SPEs and the borrower-related entity on certain portfolio-level facilities.
This separation is important for lenders. CMBS, SBA 504, and conventional hotel lenders all require SPE structures designed to achieve bankruptcy-remoteness, separateness covenants, and clean guarantor structures. Hotels Holdings is designed to meet those lender requirements, subject to lender approval, non-consolidation opinions, and ongoing compliance with lender covenants.
When hotels are acquired, each property will sit in its own property-level LLC. Hotels Holdings is designed to serve as the parent entity for those LLCs. Allencrest Group LLC owns Hotels Holdings. Fund I may invest in hotels held by Hotels Holdings, subject to acquisition completion, franchise approval, and lender approval.
Delaware limited partnership. Holds LP equity. 506(c) regulated. May invest in hotels held by Hotels Holdings.
Georgia LLC. Holds equity of each property SPE. Single point of administrative control.
Georgia LLCs (one per hotel). Holds the real estate, franchise agreement, hotel operating license, and hotel-level debt.
Hotels Holdings and each Property SPE are designed and intended to meet the separateness, single-purpose, and bankruptcy-remoteness covenants required by CMBS, SBA 504, conventional hotel lenders, and bridge financing counterparties, subject to lender underwriting approval and non-consolidation opinions. No commingled operating accounts. No cross-collateralization without explicit LP consent. No non-SPE guarantors.
Subject to lender and brand requirements. All hotel acquisitions are subject to franchise approval, brand owner consent, and lender underwriting requirements. Franchise termination or brand non-renewal could impact property operations or asset value. Hotels Holdings and each Property SPE must maintain compliance with brand standards and lender covenants throughout the fund term.
Each SPE owns exactly one hotel asset. No side businesses, no unrelated operations, no shared accounts.
Independent bookkeeping, contracts in the SPE’s name, no intermingling of assets with Fund or affiliates.
SPE structures incorporate independent manager provisions designed to require consent for voluntary bankruptcy, consistent with institutional lender form covenants and non-consolidation requirements.
Important. Hotels Holdings does not offer securities. LP interests in the parent Fund are offered exclusively through the Fund’s Private Placement Memorandum and Limited Partnership Agreement, and only to verified accredited investors under Regulation D Rule 506(c).