Theo Ventures
Pipeline
TV-MORNINGSTARActive69Moderate

Morning Star Boutique Hotel

St. Thomas, U.S. Virgin Islands·Hospitality / Ground-Up Development·Theo Ventures · Horizon Hotels (Op) · ICM (GC)
Confidence
44
Set status
Total cost
$25.3M
Target IRR
18.5–23.0%
MOIC
2.60x
Hold
7 yrs

Investment thesis

32-key chef-driven luxury boutique in St. Thomas hotel district, across from a Marriott flag. Repositioned to $750 ADR — conservative vs Ritz-Carlton St. Thomas ($842 avg). Land basis supported by 2024 C&W appraisal at $3.0M; stabilized value target $100–119M. Low confidence pending capital-partner commitments and construction-cost lock.

Risk register

  • Market
    Cap-rate expansion in exit year
  • Capital
    Floating-rate exposure post-cap
  • Sponsor
    Concentration in single GP relationship

Diligence checklist

3 of 11 items complete
27%
Workstreams cleared
Workstream
Market
2/2
  • Submarket comps, absorption & demand catalysts
    K. Reyes
  • Tourism / employment / migration overlay
    K. Reyes
Workstream
Financial
0/3
  • Underwriting model stress test (±200 bps)
    J. Tan
  • T-12 operating expense & rent-roll verification
    J. Tan
  • Debt term sheet & rate-cap pricing
    M. Okafor
Workstream
Legal
0/2
  • Title, survey & entity formation review
    Goodwin
  • Escrow agent & tranche release mechanics
    Goodwin
Workstream
Physical
0/2
  • Phase I ESA & property condition assessment
    ARUP
  • Construction budget & schedule verification
    ICM
Workstream
Sponsor
1/2
  • Sponsor track record, references & KYC
    C. King
  • GP co-invest, promote & waterfall structure
    C. King
Counterparty diligence
Composite 69 · Moderate

Proceed — close every T3/T4 gap with primary-source docs before funding.

Updated 2026-07-10
T1
3/ 6
Government / primary source
T2
2/ 6
Independent third-party corroboration
T3
1/ 6
Single self-reported source
T4
0/ 6
Unverifiable / absent
  • A · Weight 20%
    Entity Verification
    4.0/5
    • T1Theo Ventures GP + Horizon Hotels operator entities both verified.
  • B · Weight 20%
    Principal Background
    3.0/5
    • T2Horizon Hotels team corroborated; ICM (GC) references pending.
  • C · Weight 15%
    Regulatory Standing
    5.0/5
    • T1No adviser registration triggered; owned development.
  • D · Weight 15%
    Litigation & Enforcement
    4.0/5
    • T1No material litigation on record for sponsor or GC.
  • E · Weight 20%
    Track Record / Funding Mechanism
    2.0/5
    • T3$750 ADR underwriting relies on comps only; no stabilized track record for this operator team in USVI luxury.
  • F · Weight 10%
    Public Footprint Coherence
    3.0/5
    • T22024 C&W appraisal ties to representations; capital-partner LOIs not yet public.