Today we’d like to introduce you to Frank Yuan.
Frank, let’s start with your story. We’d love to hear how you got started and how the journey has been so far.
We start to acquire hotels from last economic down turn 2012 – there are so many distress Hotels in the market place. The first few hotels are in Los Angeles and Northern California, such as Marriott Downtown L.A. Universal Sheraton, Doubletree San Pedro, Holiday Inn Disneyland, Embassy Suites Disneyland, and Doubletree Berkeley…etc. total around 17 hotels in California.
From 2012 to 2015, These California hotels we bought were way below replacement cost and our appreciation just for few years are more than 300% – 400%. From 2015 till now, we change our focus to out of states hotels with same buying criteria: Full Services Branded Hotel, Below Replacement Cost, Higher than 15% cash on cash return per year. Now we bought total 32 hotels all over United States of America, 12,000 or more rooms with total asset value more than $1.2 Billion.
We expect we can buy 4 – 5 hotels per year from now on. We always want to keep our buying criteria’s: high investors return, cities with high potential grows (Location! Location! Location) and way below replacement costs. With this discipline we might be able to grow to be one of the largest hotel Private Equity funds in the U.S.
Great, so let’s dig a little deeper into the story – has it been an easy path overall and if not, what were the challenges you’ve had to overcome?
Any business has its difficulties and struggles. Hotel is a very heavy Capital investment commercial real estate. Once we identify a hotel we would like acquired, how to raise the necessary funds, i.e.$20MM to $40MM per hotel in a very short period of time is a very challenge tasks. Thanks GOD, we are very fortunate to raise enough funds for every deal before closing escrow. In addition, after acquired a hotel, how to manage it to improve revenue and reduce cost is a daily focus job. Also, the most problematic are to keep good staffs, have great guest experiences and satisfaction are our most import jobs.
Alright – so let’s talk business. Tell us about ASAP Holdings – what should we know?
We believe our Company apart from others is our transparent to every investors. Our investor can know each hotel operation results by providing them, daily revenue report, weekly flesh report and Monthly detail P & L statements. We also proud our Company for the timely cash distribution (8% per year), wire to each investor’s bank account quarterly.
Another strength of our Company is we know how to select a right fits hotel for our investors, such as Below Replacement Cost, High Returns, and Cities with growth potentials. Buying right is the key success for any business.
Most of our investors invested $50,000 and many investors invest more than $1MM. I am so proud of is we have so many repeat investors (More than 70%).
Contact Info:
- Website: www.asapholdings.com
- Phone: 310 266 6890
- Email: Jerome@asapshow.com
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