Deal Profile
GreatX is developing a first-of-its-kind platform that seeks to provide consistent cash flow with increasing yield targets each year as well as uncommon capital protection through the use of US Treasuries.
The Opportunity
GreatX is opening an asset category within real estate where anyone around the world can profit from US hospitality assets, including the potential for hotel properties from industry leaders like Marriott, Hilton, and Intercontinental.
This offering allows you to own shares in the company behind GreatX, which will own the properties as well as benefit from platform revenue and management fees.
The charter initiative features plans for 100+ hotels, 12,000 rooms, and $1B in AUM within 24 months.
The Benefits
This offering lets investors purchase shares in the company for $1 each. These funds help develop the GreatX token and platform. From the initial assets purchased during this round, shareholders receive:
10% of Operating Profits
70% of Property Appreciation
100% of Depreciation Benefits
100% of Principal Accumulation
All related property fees
100% of returns go to investors with no management fees or carry.
Income Yield: Multiple revenue streams (labs, assets, asset management) support a program of Fixed Laddered Preferred Returns. The income target for these payments is projected to increase by 6 full percentage points (6% Year 1, 12% Year 2… 42% Year 7 ) each year for a 7-year period.
Capital Protection: Each GreatX token is backed one-for-one by US Treasury bonds. Two-thirds of capital raised during this round is earmarked for purchasing these bonds.
Share Buyback: Beginning in Year 2, investors can return ⅛ of their shares per quarter and receive their original investment of $1 per share with full share redemption available through an embedded put option feature in Year 3.
The Market
US hotel revenues are projected to reach $140B by 2031
Use of Funds
Funds raised will be used for:
Treasuries: Two-thirds of the initial capital raised will go to purchasing Treasuries for capital protection. Full one-to-one treasury to share coverage is planned by Year 4
Properties: The balance of the capital will be used as part of the acquisition program for hotel assets