Gay Hotel On 42nd Street Still Asking For Money

Categories: Gaaaaayyyyyy

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The Out NYC hotel on West 42nd Street officially opened on March 1, but they're still looking for financial input.

Someone I know got an email asking for some cash a week before the opening.

Mind you, the email -- from an investment relations director -- said the place is fully funded and doing great.

It's just that they now have so much investor interest that the main owner wants to diversify "his large exposure."

They're doing so well that they're giving you the chance to invest in them as the "Sponsor" takes some of his money elsewhere!


Here's the email:


"Now that XL Nightclub is open and has exceeded expectations, with the hotel opening on March 1st, and recently an abundance of favorable press, a handful of our investors have increased their investment in recent weeks.

"Additionally, we have had numerous unsolicited inquiries about investing that we have since our last round closed. Although we are fully funded, as a result of this wave of investor interest, the Sponsor (Ian) is willing to slightly reduce his large exposure at his cost for diversification reasons. I wanted to reach out to you once more to see if you have any renewed interest.

"Investments in the project have ranged between $100K and $1MM. We are offering the exact same deal terms as last year (including a waived sponsor promote until you get all your money back) with an obvious much smaller amount of risk associated now that the project is fully funded and successful.

"New investors will come in as preferred equity investors with a 10% preferred dividend plus a guarantee of all money back before the Sponsor gets any promote. Over the 8 years that we have projected out cash flow, we expect cash returns with low leverage to average in the teens."


So what do you say, gays? Deal or no deal?


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15 comments
mjm
mjm

 I'm sure the hotel will get a few big checks from the (closeted) Hollywood stars who frequent it..

Musto
Musto

PS: After they thanked me for being fair in my writeup of XL (which they compared to another site's writeup, which they thought was too negative) and kissing my ass on Twitter, they didn't even invite me to the hotel's grand opening! What freaks!!

Hugh Manatee
Hugh Manatee

And by the way, all you rich old guys -- they're not going to let you into the nightclub.

alexgeana
alexgeana

I don't know how I feel about these deal terms. :-/ And if it's doing so well, why are they offering the same terms. For less risk. 

Savannah Montgomery
Savannah Montgomery

Mary, stop! I just bought the Woolworth Mansion....at ABC now to decorate!

Supergr8
Supergr8

They built a branch of the Parliament House in New York?  Is it just as stylish?

Rc61austin
Rc61austin

It is beginning to sound like a gay White Elephant?   Count me out.  Hi Michael...I'm in NYC to see the first preview  of "Evita" tonite at 8pm.  Maybe I'll see you there?  

Timmmyk
Timmmyk

Old, disconnected queers from the drugged out, lush over the top days of the 70s', 80's and early 90's pushing a forced, contrived scenario on the uptight, overdressed, entitled, unforgiving, judgmental, money hungry, status obsessed spoiled brats of the 21st century. Excise that obnoxious sense of privilege and self righteousness, apologize for the attitude and go away.

Ick
Ick

It's a big day for gay real estate looking for money (Fire Island and this). A bad day for the gays.

Jarjar
Jarjar

I love the spin--we're doing so well that our owner wants to put his money elsewhere. And that's where YOU come in...

Ulu
Ulu

No deal. 

VonD
VonD

Don't worry chile, cause they don't wantcha to start a whispering campaign that it's full of bedbugs. They don't want it! Miss Thing they don't wannnnt it! 

But like Bonita Botrelle, you didn't hear that from me!

Allen Firth
Allen Firth

Towne cars to take them to Townhouse.

Winston
Winston

But tell us how you really feel.

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