The purpose of this Confidential Investment Offering Overview is to provide a summary of a possible future private investment opportunity that may be made available to a certain limited number of accredited investors. This is not an offer to sell real estate and/or any type of security, partnership interest, public or otherwise.

The contemplated offering, if made available formally, would provide Investors with the opportunity to acquire an interest in the 110 room historic Madison Hotel and adjacent 1 S Main retail building in the heart of Downtown Memphis. Built in 1905, the Beaux Arts style 16-story Tennessee Trust bank building was among downtown Memphis’ first skyscrapers, and was added to the National Register of Historic Places in 1982. In 1999, a developer acquired the deteriorating structure and converted it into the Madison Hotel, which opened in 2001. The developer also adjoined the two-story structure next door to create the loading dock, kitchen, and banquet areas. In 2006, the hotel was named “World’s Best 500” by Travel + Leisure and in 2012, a complete rooms renovation was completed as well as the addition of a ground-floor restaurant and rooftop bar, overlooking the city.

Aparium intends to complete a thoughtful renovation of the Madison Hotel. Timeless yet fresh interior design and branding rooted in Memphis are paramount in the repositioning efforts, assuring that the hotel will be positioned as a showcase of the great City and a preferred destination. The anticipated renovation will refresh the rooms, corridors, meeting and banquet space, food and beverage venues, and will modernize equipment and infrastructure creating sustainable operating efficiencies. The inspired design will remain true to the authentic nature and history of the Tennessee Trust building, and the renovation will breathe new life into the property. Post renovation, the rooms and public spaces will be more elegant and notable and the food, beverage and banquet outlets will be market leaders.

The Madison Hotel is located in the heart of Downtown Memphis. With a population of over 650,000, Memphis is the largest city in Tennessee. As of 2014, Memphis was the home of 9 Fortune 500 companies including FedEx (no. 63), HCA Holdings (no. 82), International Paper (no. 107), and Dollar General (no. 175). In addition to the world famous Beale Street, named America’s Best Iconic Street by the USA Today, Memphis is the home of Graceland, which is estimated to bring in over $150 million per year in tourism. The Downtown Memphis market benefits from a healthy mix of commercial, meeting and group, and leisure demand. The market increased in Revenue Per Available Room (RevPAR) by 12.7% in 2014, and 7.2% in 2015, outpacing the national averages over the same period. While hotel development is in the midst of a boom stage in many Top 25 markets, Memphis is not experiencing the same level of anticipated supply. Of the 4,102 rooms in Memphis Central Business District, only the 464-room Peabody and 203-room Westin are full-service, upscale/luxury competitors. The Madison Hotel is the only true upscale boutique hotel in the market, and upon completion of the renovation, will be the most unique hotel in the marketplace, and will offer incredible food and beverage options that will benefit the entire downtown Memphis area.

The project sponsorship is led by Aparium Hotel Group, with SMB Bradley acting as an investment partner. Aparium represents the development, ownership, and management of the highly acclaimed Iron Horse Hotel, a similar hotel to The Madison, in Milwaukee, WI, as well as the newly opened Charmant Hotel in LaCrosse, WI. The Iron Horse has won numerous national awards including AAA Four Diamond Award, Boutique Lodging & Lifestyle Association Boutique Hotel of the Year, Conde Nast Traveler Magazine’s “Gold List”, and Trip Advisor’s #19 Hotel in America. In addition to these two operating hotels, Aparium is under development on multiple new hotels in areas such as Minneapolis, Kansas City, New Orleans, and Detroit. In 2015, SMB Bradley teamed with Aparium to develop The Hewing Hotel, a luxury boutique hotel property, in downtown Minneapolis, that is currently under construction and anticipated to open in the fall of 2016.

Prior to launching Aparium Hotel Group in 2012, its principals led the ownership, development, and management of the award-winning Elysian Hotel in Chicago (now Waldorf Astoria), which upon opening was named the #1 Hotel in the US by Conde Nast, Trip Advisor, Robb Report, and Travel and Leisure and included a Michelin two star restaurant. Aparium Hotel Group is now focused on delivering its award-winning service to truly unique one of a kind hotels in exciting, unsaturated markets.

© SMB Equity, LLC  © Bradley Associates, LLC  /  DISCLAIMER  /  LOGIN