RED VII - Heritage Inn Hotel Acquisition

RED VII - Heritage Inn Hotel Acquisition 
Investor Update | September 2025
Executive Summary
We are pleased to provide this update on the Heritage Inn Hotel Acquisition project. The investment continues to perform well, with recent operational enhancements further strengthening the property's financial position.
Investment Overview Recap
Property Details
Property Location: Great Falls, Montana
Total Loan Amount: $2,800,000
Loan-to-Value Ratio: 49%
Property + Business Value: $21,900,000
Tiered Return Structure
Share A ($250K+): 18% annual return
Share B ($100K-$249K): 16% annual return
Share C ($50K-$99K): 14% annual return
Hotel Operator: Experienced hospitality group managing 78 hotels across 11 states with $265M in annual revenues and over 40 years of combined management experience.
Property Features: State-of-the-art conference facilities, fully equipped fitness center, covered pool area, and restaurant operations.
Project Status Update
Recent Milestone
The Montana hotel operators have received the transfer of all licenses, including those necessary for restaurant operations. This represents a significant operational achievement that strengthens both the operational capabilities and financial position of the hotel through the addition of full-service restaurant operations.
Financial Performance
The property continues to perform in line with projections, with the enhanced revenue stream from restaurant operations providing additional cash flow stability.
First Distribution
We are on track to distribute the first interest payment by mid-December 2025.
Revised Payment Schedule
Potential Refinance and Loan Repayment (with option for investors to remain in the loan or exit)
Projected Total Interest Over Loan Life
Based on your investment tier:
$112.5K
Share A
~$112,500 total interest on $250K investment
$43K
Share B
~$43,000 total interest on $100K investment
$20.5K
Share C
~$20,500 total interest on $50K investment
Next Steps & Upcoming Milestones
01
December 15, 2025
First interest distribution to all investors
02
Ongoing
Quarterly interest payments as scheduled
03
Q3 2027
Evaluation of refinancing options and investor preferences for exit or continuation
Conclusion
The Heritage Inn acquisition continues to progress according to plan, with the recent transfer of all operational licenses representing a significant positive development. The addition of restaurant operations enhances both the property's revenue potential and operational strength. We remain confident in the investment thesis and look forward to delivering the strong returns outlined in the original investment materials.
Thank you for your continued confidence in Prosper Real Estate & Development. Should you have any questions regarding this update or your investment, please don't hesitate to contact our Prosper RED team.