HOLIDAY INN EXPRESS · HILTON HEAD ISLAND
A short-duration promissory note backed by a renovated coastal hotel.
Choose current monthly income or a higher deferred return from a note positioned ahead of the property’s equity investors in the repayment waterfall.
Available only to verified accredited investors. All terms are subject to the official offering documents.
THE INVESTMENT
Debt capital with a defined place in the property’s capital stack.
The promissory note is a loan from private investors to the hotel partnership, 2TL, LP. Management expects the note to be repaid from a future sale of the hotel, and note investors are scheduled to receive principal and accrued return before money is returned to equity investors.
That priority does not eliminate risk: the note remains subordinate to the senior mortgage and repayment depends on the property, the partnership, market conditions, and the ultimate sale or another available source of funds.
STRUCTURE MATTERS
See where the note sits before equity.
Capital-stack figures are reported as of Q2 2026. The appraisal is a professional estimate as of July 10, 2025; actual sale value may be higher or lower.
INDEPENDENT LENDER APPRAISAL
$28.5MAppraised value as of July 10, 2025.
This is a simplified illustration of the three principal layers requested above and does not show every obligation. The appraisal also presented a projected stabilized value of $29.7 million for July 2026. That projected value is not a current appraisal or a guarantee of sale proceeds.
THE PROPERTY
Renovated, branded and one block from the beach.
The 153-room Holiday Inn Express sits in Hilton Head Island’s South Forest Beach district, beside the island’s central park and within walking distance of the beach. It is the island’s only IHG-branded hotel.
- Full renovation completed April 2025Guest rooms, arrival experience and operating spaces were modernized.
- IHG standards satisfiedNo additional brand-required renovations were reported in Q2 2026.
- Post-renovation operating year underwayManagement is building a full 2026 performance record before pursuing a sale.
Q2 2026 OPERATING UPDATE
A strong peak-season quarter—viewed alongside the full-year risks.
Unaudited property-level results for April through June 2026. Hotel performance is seasonal, and one quarter is not indicative of a full year.
For the trailing 12 months reported in Q2, DSCR was 0.55× and cash flow after loan payments was negative by approximately $649,000. Management attributes much of that lower trailing coverage to the renovation period and the time required to return the hotel to normal operations after construction was completed in 2025. Calendar year 2026 is the first full post-renovation operating year, and year-to-date revenue through June was approximately 4.9% ahead of budget. Management currently expects the hotel to outpace its budgeted 2026 projections, but results remain seasonal and are not guaranteed.
THE REPAYMENT PLAN
Build the operating record. Position the hotel for a marketed sale.
The plan describes management’s current intent, not a promised outcome. Timing, valuation and proceeds may differ.
Operate through 2026
Capture a complete calendar year of post-renovation performance and continue improving off-season demand.
Test the market
Collect broker opinions of value in late 2026 or early 2027 and evaluate hold, sale and refinance alternatives.
Target a sale
Management currently targets a sale in 2027, possibly 2028, using an institutional hotel brokerage process.
Repay debt before equity
Sale proceeds are expected to repay the senior and secondary debt and the promissory notes before equity distributions.
SEE THE ASSET
Take a guided property tour.
Walk through the renovated hotel with Dan Handford and Rob Gallo and see the guest experience, updated public spaces and proximity to Hilton Head’s South Forest Beach.
Open the tour on YouTube →INVESTOR ELIGIBILITY
Is the Holiday Inn Express Promissory Note a fit for you?
This Rule 506(c) offering is available only to verified accredited investors who can evaluate the risks of a private, illiquid real estate investment and review the official offering documents before investing.
REQUEST OFFERING INFORMATION
Review the offering memorandum or connect with Investor Relations.
Complete the form to request the current offering materials, ask a question, or schedule a conversation with our Investor Relations team.
YOUR INVESTOR RELATIONS TEAM
Whitney Elkins-Hutten
Director, Investor Education
Chad Zdenek
Manager, Strategic Investor Partnerships
Rob Gallo
Director, Investor Relations
Emily Mooneyham
Manager, Investor Services
FREQUENTLY ASKED QUESTIONS
Holiday Inn Express Promissory Note FAQs
These answers are a summary only. The current private placement memorandum, subscription agreement and related offering documents control in all respects.
Who is eligible to invest?
This Rule 506(c) offering is available only to verified accredited investors. Prospective investors must complete the required eligibility and accreditation-verification process before investing.
What are the available return options?
Class A is structured with a 10% preferred return paid monthly. Class B is structured with a 12% preferred return paid at maturity. Preferred returns and principal repayment are not guaranteed, and the official offering documents should be reviewed for complete terms.
What is the minimum investment?
The stated minimum investment is $25,000, subject to acceptance by the issuer and the requirements contained in the official offering documents.
When is the note scheduled to mature?
The promissory note is scheduled to mature in January 2028. Management currently targets a hotel sale in 2027, possibly 2028, but the timing and proceeds of a sale are not guaranteed.
Where does the promissory note sit in the capital stack?
The note is subordinate to the senior mortgage and is scheduled to be repaid before money is returned to the property’s Class A equity investors. Priority ahead of equity does not eliminate the possibility of delay or loss.
How was the hotel valued?
An independent appraisal prepared for the lender valued the hotel at $28.5 million as of July 10, 2025. The appraisal also included a projected stabilized value of $29.7 million for July 2026. An appraisal is an estimate as of its effective date; actual sale value may be higher or lower.
How is the hotel performing after the renovation?
The full renovation was completed in April 2025. For Q2 2026, management reported $1.96 million of revenue, $597,679 of EBITDA/NOI and quarterly DSCR of 2.49×. Year-to-date revenue through June was approximately 4.9% ahead of budget. These unaudited results are seasonal and are not indicative of future performance.
What are the principal risks?
This is a private, illiquid real estate investment. Risks include hotel operating performance, seasonality, leverage, interest rates, market conditions, sale timing and valuation, transfer restrictions, possible delays in distributions or repayment, and partial or complete loss of principal. The trailing-12-month DSCR reported in Q2 2026 was 0.55×. Investors should review every risk factor in the official offering documents and consult their own advisers.
How can I request the offering memorandum or speak with Investor Relations?
Complete the offering-information form on this page. The Investor Relations team can provide the current materials, answer questions and explain the next steps in the review process.
ANOTHER INCOME-FOCUSED OPPORTUNITY
Explore the Real Estate Debt Fund.
Looking for a diversified portfolio of short-duration residential real estate loans? Review our non-levered debt-fund strategy for verified accredited investors.
Information date and sources. Offering terms reflect the April 2026 promissory-note webinar and should be confirmed against the current official offering documents. Property, capital-stack and operating figures reflect management’s Q2 2026 investor report for 2TL, LP and are unaudited unless otherwise stated. Appraisal figures are from the independent lender appraisal dated July 10, 2025. The official offering documents control in all respects.