Investment FAQ

Find answers to common questions about investing in CIL Hotel Turnaround Services.

What is CIL Hotel Turnaround Services?

CIL Hotel Turnaround Services is a division of Collaborative Investment Ltd (CIL) that specializes in acquiring underperforming hotels, renovating them, implementing professional management systems, and restoring them to profitability. We offer investment opportunities to accredited investors seeking exposure to Nigeria's hospitality sector.

What is the minimum investment amount?

The minimum investment is ₦5,000,000 for our Single Asset investment option. For the Portfolio Fund, the minimum is ₦10,000,000. Joint Venture opportunities require a minimum of ₦50,000,000.

What types of hotels do you invest in?

We focus on boutique hotels, business hotels, lifestyle hotels, and serviced apartments typically with 10-50 rooms. We target properties in prime locations with good bones but operational challenges that can be corrected through our turnaround model.

How many hotels has CIL turned around?

CIL has successfully turned around over 15 hotels across Lagos, Abuja, and Port Harcourt. Our portfolio includes properties like The Victoria Hotel, Ikeja Grand Hotel, and Lekki Beach Resort.

What returns can I expect?

Target annual returns range from 20-30% depending on the investment option. Single Asset investments target 20-25% IRR, Portfolio Fund targets 18-22% IRR, and Joint Venture opportunities target 25-30% IRR. Past performance is not a guarantee of future results.

How often are distributions paid?

Distributions are paid quarterly from stabilized properties. During the renovation phase (typically 6-12 months), distributions may be deferred or reinvested. You'll receive detailed quarterly reports on property performance.

What is the investment term?

The typical investment term is 3-5 years. After stabilization, we may hold properties for ongoing cash flow or exit at a premium valuation. Investors are typically offered liquidity options at the exit point.

Can I exit early?

Early exits are subject to availability of a buyer for your investment units. The Portfolio Fund offers quarterly redemptions subject to notice periods. For Single Asset investments, early exit may be possible with a 5-10% early redemption fee.

How do I become an investor?

The process is simple: (1) Complete the investor inquiry form on our Opportunities page, (2) Schedule a consultation with our investment team, (3) Review and sign the Subscription Agreement, (4) Transfer funds to the designated escrow account, and (5) Receive quarterly reports and distributions.

What documents do I need to invest?

You'll need to provide a valid government-issued ID (passport, driver's license, or national ID), proof of address (utility bill or bank statement), and for corporate investors, company registration documents. Accredited investors may also need to provide proof of net worth or income.

Can foreign nationals invest?

Yes, foreign nationals can invest. Please contact our investment team for specific requirements regarding cross-border investments and currency considerations.

What are the main risks?

Key risks include market fluctuations, renovation delays, operational challenges, and economic downturns. We mitigate these through thorough due diligence, experienced management teams, conservative financial modeling, and diversification across properties and locations.

What happens if a hotel underperforms?

Our team monitors performance daily and implements corrective measures promptly. If a property underperforms, we have contingency plans including operational adjustments, marketing interventions, and potential refinancing. We maintain strong cash reserves to weather unexpected challenges.

How is my capital protected?

Your investment is backed by tangible real estate assets. Funds are held in segregated accounts with reputable banks. Properties are insured against physical damage. We maintain conservative loan-to-value ratios and avoid excessive leverage.

How are returns taxed?

Distributions are subject to applicable withholding taxes. Nigerian residents are subject to 10% withholding tax on investment income. We recommend consulting with your tax advisor for personalized advice based on your tax situation.

Are investments SEC registered?

CIL operates as a private investment company. Our offerings are made to accredited investors and may be exempt from certain SEC registration requirements. We comply with all applicable Nigerian securities laws and regulations.

What legal documents will I receive?

Investors receive a comprehensive subscription package including: Subscription Agreement, Private Placement Memorandum (PPM), Operating Agreement, and quarterly financial statements. All documents are reviewed by our legal counsel.

Still Have Questions?

Our investment team is ready to discuss your goals and answer any questions you may have.

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