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DISCLAIMERS — June 2026. College Street Partners, a Tennessee general partnership (“CSP”), is furnishing this presentation solely so that a potential investor (“you”) can evaluate whether you have an interest in proceeding with further discussions regarding a possible purchase of partnership interests issued by CSP. This presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities, and it is not investment advice. You are encouraged to read this presentation and all the other materials furnished by CSP in connection with the offering before making any investment decision. The information here may change after the date hereof, and CSP does not undertake any obligation to update this presentation as a result of new information, future developments, or otherwise.
Confidentiality. This presentation is confidential and intended for use only by the person receiving it (or online access to it) from CSP. You may not copy this presentation or share it with any other person or entity other than your attorney, accountant, or other professional advisor without the express written consent of CSP in each instance.
No representations or warranties. Except as may be set forth expressly in a written agreement executed by CSP and you regarding an investment in CSP, none of CSP, its affiliates, and the partners, members, officers, and agents of the foregoing makes any representations or warranties — whether express or implied, by operation of law, or otherwise — or assumes any responsibility with respect to an investment in CSP or any materials, statements (including financial statements and projections), or information provided in this presentation or otherwise made available to you, or as to the accuracy or completeness of any such materials, statements, and information.
Forward-looking statements. This presentation contains forward-looking statements reflecting CSP’s expectations and projections as of the date hereof with respect to CSP’s financial condition, results of operations, plans, objectives, future performance, and business. Words like “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” and similar terms identify them. Forward-looking statements include any statement that is not a statement of historical fact and are subject to various risks and uncertainties — important factors could cause actual outcomes to differ materially. There is no assurance any forward-looking statement will materialize. You are cautioned not to rely on forward-looking statements, which reflect expectations only as of the date hereof. CSP does not undertake any obligation to update or review any forward-looking statement after the date hereof.
Market and industry data. This presentation may include information concerning economic conditions and CSP’s competitive position based on various assumptions and subjective determinations from a variety of sources, including independent publications and publicly available information released by third parties as well as CSP’s own estimates and research. CSP and its agents have not tested or verified any such third-party information, and CSP makes no representation, warranty, guaranty, or assurance as to the accuracy of any such information.
The Property. The principal asset of CSP is land in Monteagle, Tennessee (the “Property”) that CSP intends to develop and operate (itself and through third parties) as a resort hospitality property. Except as may be set forth expressly in a written agreement executed by CSP and you regarding an investment in CSP, none of CSP, its affiliates, and the partners, members, officers, and agents of the foregoing makes any representations or warranties or assumes any responsibility with respect to the Property — including without limitation as to its condition, quality, fitness, or title. You should perform your own examination and inspection of the Property and information regarding it.
Reference to definitive documents. The terms of any securities offered by CSP, the rights and obligations of the partners, and all economic and governance arrangements are set forth in CSP’s Amended and Restated Partnership Agreement and Subscription Agreement, together with the Disclosure Statement and exhibits delivered separately to qualifying investors. Any summary of those documents in this presentation is qualified in its entirety by reference to the actual documents.
An icon reimagined. A mountain escape redefined. The transformation of the historic DuBose campus into a Palihouse mountain resort in the Tennessee Cumberlands.
A Design Hotels memberMarriott Bonvoy distributionOperated by Palisociety
133
Keys
$96.4M
Total Project Cost
21.2%
Levered IRR
2.91x
LP Equity Multiple
Executive Summary
An icon reimagined. A mountain escape redefined.
College Street Partners, in collaboration with Palisociety, is transforming the historic DuBose campus in Monteagle, Tennessee into a design-forward mountain resort. This adaptive reuse project blends heritage with modern hospitality—delivering a curated lifestyle destination in a market with virtually no direct competition.
Stabilized NOI
$11.4M
Untrended, Year 3
Sale Valuation
$148.4M
7.5% cap rate · Year 8
Yield on Cost
11.6%
Stabilized untrended
LP Equity
$30.6M
90% LP / 10% GP
From historic campus to mountain resort
A century-old landmark, reimagined for the modern lifestyle traveler.
Today · Claiborne Hall, the National Register-listed 1924 anchor of the historic DuBose campus.Reimagined · Palihouse Monteagle—the same building, carefully restored as the resort's heart.
Five pillars of value
A singular opportunity built on heritage, design, scarcity, distribution, and execution.
01
Iconic Legacy, Singular Opportunity
Anchored by 1924's Claiborne Hall—a National Register-listed landmark on a 27-acre historic campus. Originally Fairmont College (est. 1872) and the DuBose Church Training School. Acquired August 2023 and successfully rezoned from institutional to commercial—clearing the path for full-scale hospitality development.
02
Category Leader in a White-Space Market
Virtually no direct lifestyle hotel competition in Monteagle. Six major drive-to feeder cities within three hours, including Chattanooga (45 min), Nashville (90 min), and Atlanta (2.75 hrs). 400,000+ annual visitors to South Cumberland State Park alone.
03
Breakthrough Concept with Proven Backing
An immersive, design-led hospitality experience anchored by Palisociety—operator of Palihouse, Palihotel, and the lifestyle Arrive collection. Their flagship Palihouse brand evokes a well-loved pied-à-terre: refined, lived-in, and distinctly personal.
04
Design Hotels & Marriott Bonvoy Distribution
Palihouse Monteagle will join Design Hotels—the curated collection of 300+ independent boutique hotels, and a member of the Marriott Bonvoy portfolio. The property gains immediate access to Marriott's ~237M-member loyalty program, global GDS and OTA agreements, corporate sales force, and group/event distribution—dramatically lowering customer acquisition cost while preserving the independent design-forward identity.
05
Destination Dining That Sets the Pace
A signature food & beverage program built to exceed local metrics and establish a new regional standard. Combined with weddings, retreats, full-property buyouts, and curated programming that drive year-round, multi-channel revenue.
"The setting blends historic charm with layered hospitality—ideal for celebrations, offsites, and curated gatherings. A regional landmark with long-term economic and cultural value."
The Opportunity
Why now, why here.
Three converging forces have created a rare repositioning window: a one-of-a-kind historic campus with newly cleared zoning, the largest underserved drive-to leisure market in the Southeast, and a category-defining operator looking for its first true mountain resort.
27 acres on the Cumberland Plateau—Tennessee's mountain front door.
Historic Bones
A 153-year campus with rezoning approved.
From 1872's Fairmont College to Claiborne Hall (1924) on the National Register. Operated as an Episcopal retreat through 2022. Rezoning institutional → commercial complete.
Market Gap
No direct lifestyle competition.
Monteagle sits at the heart of a high-income drive-to market. The closest comparable resorts (Old Edwards, High Hampton) are 4+ hours away in North Carolina. We become Tennessee's signature destination resort.
Operator Fit
Palisociety as partner & operator.
Palisociety ($300M+ portfolio across 30+ properties) co-invests and operates—aligning incentives. Their flagship Palihouse brand is purpose-built for design-forward, residential-feel hospitality.
Demand drivers
Tourism Growth
400,000+ annual visitors to South Cumberland State Park
Bonnaroo Music & Arts Festival (Manchester, TN — 35 min) draws ~80,000 attendees over 4 days each June; major demand spike + corporate hospitality opportunity
Nature-based travel surging post-pandemic
Nationally recognized hiking/climbing trail systems
The Caverns concert venue (15 min) drives high-AOV weekend traffic
Cultural & Academic Anchors
Sewanee: The University of the South — 10 minutes; one of the South's premier liberal-arts colleges, with reunion, family, and parents' weekends that drive seasonal lodging demand
Sewanee Summer Music Festival — 5+ week classical festival each June & July, founded 1957, draws faculty + students + audiences from across the U.S.
Sewanee Writers' Conference — flagship literary conference each July, established 1990, attracts a national roster of authors
St. Andrew's-Sewanee School — prestigious K-12 Episcopal college-prep school with boarding upper-division; drives sustained parent + alumni travel
Monteagle Sunday School Assembly — historic 175-year Chautauqua programming with summer cottages and lecture series
Wedding & reunion calendar already established for the campus
Drive-to feeder markets
Six high-income MSAs within a three-hour drive—the radius where lifestyle leisure travelers make weekend decisions.
Chattanooga, TN
45 min
Nashville, TN
90 min
Huntsville, AL
90 min
Birmingham, AL
2.5 hr
Knoxville, TN
2.5 hr
Atlanta, GA
2.75 hr
On the map
635 College Street, Monteagle, TN — at the geographic center of the Southeast's drive-to leisure market.
Palihouse Monteagle Feeder cities (drive time)
Distribution & loyalty advantage
Independent design — global muscle. Palihouse Monteagle joins Design Hotels and the Marriott Bonvoy ecosystem.
Design Hotels is a curated collection of 300+ independent boutique hotels across 60+ countries—each chosen for original character, design integrity, and a strong sense of place. Since 2018 it has been a member of Marriott Bonvoy, Marriott International's loyalty program. Joining Design Hotels lets Palihouse Monteagle preserve its Palisociety personality while plugging into the largest distribution platform in hospitality.
Marriott Bonvoy Members
~237M
Direct loyalty channel for repeat bookings
Design Hotels Properties
300+
Curated boutique collection · 60+ countries
Marriott Properties Worldwide
9,000+
30+ brands · combined cross-sell engine
Bonvoy Annual Revenue
$30B+
Loyalty-driven across the portfolio
Lower Customer Acquisition Cost
Bonvoy direct > OTA
Marriott member-direct bookings carry materially lower distribution costs than third-party OTAs. The Bonvoy channel routinely contributes 50%+ of room nights to participating hotels—a direct hit to commission expense and a lift to RevPAR.
Group, Corporate & Wholesale
Marriott's sales force, our doorstep
Access to Marriott's global GDS, corporate-rate agreements, group-RFP system, and tour/wholesale pipelines. Particularly valuable for filling shoulder-season midweek room nights and securing recurring corporate-retreat business.
Independent, Not Branded
Palihouse soul, fully intact
Design Hotels affiliation is distribution-only—the property keeps its name, identity, design language, F&B program, and Palisociety operating playbook. We get global reach without a flag on the front door.
The Property
A fully integrated resort experience.
133 keys across thoughtfully restored historic buildings and freestanding cabins, set on 27.4 acres. Adaptive reuse meets new construction to deliver pool, spa, racquet sports, destination dining, and an integrated trail network.
Master site plan · Restored historic buildings + new casita village, pool & amenity core, F&B, and integrated trail network across 27.4 acres.
Total Acreage
27.4
Historic campus footprint
Total Keys
133
Across 5 building types
Built Square Footage
100K
SF planned
F&B SF
8,221
Plus 17,088 SF amenities
Room mix & rate strategy
Room Type
Keys
SF
ADR
Occ
Claiborne — King Room
Adaptive reuse · National Register building
23
292
$375
70%
Holiday Lodge — King Room
Adaptive reuse
32
326
$500
65%
Hacienda Court — King Room
Adaptive reuse
10
272
$375
70%
Casita — 1 Bedroom Cottage
New construction · freestanding
16
423
$875
65%
Casita — 2BR King Suite Lockoff
New construction · premium tier
26
528
$1,000
40%
Casita — 2BR Standard King Lockoff
New construction
26
331
$500
60%
Total / Weighted Avg
133
368
$577
60%
Planned amenities & programming
Wellness & Recreation
Pool & pool bar · spa & treatment rooms · racquet sports courts · yoga · integrated trail network · seasonal classes
Food & Beverage
Destination restaurant · bar & lounge · poolside service · in-room dining · seasonal pop-ups · chef-led programming
Latest concept renderings from the Pfeffer Torode + LandDesign master plan (March 2026).
Pool & pool bar · The amenity heart of the property, with Claiborne Hall as backdrop.Guest lawn · Fire pits, dining patio, Adirondack chairs.Event courtyard at dusk · Weddings, dinners, full-property buyouts.Hacienda Court · Arched corridors, lanterns, intimate dining.Casita porch life · 68 freestanding cabin keys—the highest ADR tier.
The casita village
Three casita typologies on a curated site plan—designed for privacy, mountain quiet, and rate premium.
1-Bedroom Casita · 16 keys · $875 ADR · 423 SF.Casita with fire pit · Private outdoor seating & mountain quiet.2-Bedroom lockoff pairs · 52 keys · families and groups.
Market & Comparable Properties
A category-defining position.
The closest direct lifestyle competition operates 4+ hours east in North Carolina—at $500–$1,200 ADRs and routinely sold out on weekends. Palihouse Monteagle plants a flag in a market that has never had a true destination resort.
The comp set runs $500–$1,200 ADR. We sit closer to home, with more keys, in a market with no equivalent product.
Old Edwards Inn
Highlands, NC
Keys98
ADR Range$500–700
Drive4.5 hr
Half Mile Farm
Highlands, NC
Keys34
ADR Range$350–400
Drive4.5 hr
Cataloochee Ranch
Maggie Valley, NC
Keys18
ADR Range$600–1,200
Drive5 hr
High Hampton
Cashiers, NC
Keys59
ADR Range$750–850
Drive5 hr
Our Position
Premium positioning · disciplined underwriting
Stabilized ADR
$577
Weighted across 133 keys
RevPAR
$349
60% weighted occupancy
Operating Margin
46.5%
Stabilized year
Audience & positioning
Brand Alignment
Palihouse Monteagle will operate under Palisociety's flagship brand—known for European charm, residential ease, and modern bohemian sensibility. The property will join Design Hotels, the curated boutique collection within Marriott Bonvoy—pairing Palihouse's design-forward independence with Marriott's distribution and loyalty reach.
Target Guest
Design-conscious, drive-to leisure traveler from Nashville, Atlanta, Birmingham, and beyond. United by a shared appreciation for thoughtful design, meaningful service, and a spirit of true hospitality—core to the Palisociety ethos. Captures both elevated cabin-seekers and approachable guest-room travelers.
The brand world
Visual references curated for the Palihouse Monteagle aesthetic—layered textures, vintage millwork, residential warmth.
A $96.4M total project cost financed with 90/10 LP/GP equity, senior construction debt, $10.65M of net CDD financing proceeds (sales-tax-increment-backed under Tenn. § 67-6-104), plus the federal Historic Tax Credit (HTC) and Tax Increment Financing (TIF) stack. Below: stabilized operating economics, sources & uses, and the full return profile.
Unlevered IRR
15.3%
Project-level return
Levered IRR
21.2%
Equity-level after debt
LP IRR
19.9%
After 10% pref & 15% promote
LP Equity Multiple
2.91x
$1.00 in → $2.91 out
Project Equity Multiple
3.23x
Levered, all-in
Hold Period
~7 yrs
Acquisition Sep 2025 → Sale Aug 2032
Sources & uses
Sources of Capital
Senior Construction Loan
$51,427,000
53.4%
LP & GP Equity
$34,288,025
35.6%
CDD Net Proceeds (sales-tax-backed)
$10,655,000
11.0%
Total Sources
$96,370,025
100%
Plus $3.96M in Federal Historic Tax Credits delivered as operating-period inflows, and $2.23M in TIF distributions during the hold. CDD financing par of $14.0M is anticipated to net $10.65M after cost of issuance, capitalized interest, and a debt-service reserve fund.
8.0% exit cap · 90% of underwritten ADR. Project still fully services debt and returns capital plus pref.
Base Case
19.9% IRR
7.5% exit cap · stabilized ADR/occupancy at underwritten levels. 2.91x LP equity multiple.
Upside Case
~26% IRR
7.0% exit cap · 110% of underwritten ADR (in line with Old Edwards/High Hampton). Casita-driven yield uplift.
Note on conservatism: the pro forma underwrites Palihouse Monteagle as an independent boutique hotel. The forthcoming Design Hotels / Marriott Bonvoy affiliation is expected to materially lower distribution costs (member-direct bookings) and lift occupancy (loyalty redemption + corporate/group bookings) once live—revenue and margin upside that is not fully reflected in the underwritten 19.9% LP IRR.
All figures derived from the Palihouse Monteagle V2.1 pro forma. Sensitivity scenarios are illustrative and based on adjustments to exit cap rate and ADR; they do not represent forecasts. Past performance of comparable properties is not indicative of future results.
Public-Finance Stack
Stacking three tiers of public capital.
This project benefits from a rare alignment of three public-finance instruments: Federal Historic Tax Credits (HTC), a Tennessee Commercial Development District (CDD) sales-tax bond financing, and Tax Increment Financing (TIF). Combined, they deliver ~$16.8M of value to the capital stack and meaningfully boost equity returns.
Claiborne Hall (1924) — National Register-listed and the QRE engine of the project.
Federal HTC
$3.96M
20% of QREs · 5-year flow ($792K/yr)
CDD Net Proceeds
$10.65M
$14.0M par · sales-tax-backed · 20-yr term · Tenn. § 67-6-104
TIF Distributions
$2.23M
Operating years 4–8
Spotlight: Federal Historic Tax Credit (HTC)
Because Claiborne Hall is on the National Register of Historic Places, the project qualifies for the 20% Federal Historic Rehabilitation Tax Credit on certified rehabilitation expenditures (QREs). For investors, this is one of the most powerful tools in the capital stack.
01
Qualify the building
Claiborne Hall is already on the National Register. Holiday Lodge and other historic structures are pursuing certification through the SHPO/NPS Part 1 & Part 2 review.
02
Generate QREs
Qualified Rehabilitation Expenditures are the costs of bringing historic buildings back to use. Project QREs are ~$19.8M, generating $3.96M of credits at 20%.
03
Credits delivered to investors
Credits flow ratably over 5 years (~$792K/yr) once the building is placed in service. Allocated to investors per partnership agreement, dollar-for-dollar against federal tax liability.
04
Bridge or syndicate
Credits can be used directly by partners with sufficient passive income, or syndicated to a tax-credit investor at $0.85–$0.95 per $1.00 of credit—delivering cash to the project at closing.
What HTC means for an LP investor
A second layer of return on top of the deal economics.
Because the HTC is a federal tax credit—not a deduction—every $1 of allocated credit reduces your federal tax bill by $1. For an LP allocated their pro-rata share of the $3.96M HTC pool, that's roughly 11.6¢ of additional after-tax return for every $1 of LP equity, layered on top of the project's underwritten 2.91x equity multiple and 19.9% IRR.
The pro forma already includes HTC inflows in the 21.2% project-level levered IRR. The additional benefit to a tax-paying investor—the dollar-for-dollar federal liability reduction—is captured in the calculator on the next tab.
HTC Disbursement Schedule
Year
HTC Inflow
Cumulative
2028 (Year 1 ops)
$792,244
$792,244
2029
$792,244
$1,584,488
2030
$792,244
$2,376,732
2031
$792,244
$3,168,976
2032
$792,244
$3,961,220
Total
$3,961,220
$3,961,220
Tax Credit Advisor
Southkick advising on Historic Tax Credits.
Paragon Advisors leading the CDD and TIF structuring. Brasfield & Gorrie general contractor with extensive experience preserving QRE-eligible costs.
SHPO Part 1 underwayQRE budget validated
Historic Tax Credits are subject to IRS rules under IRC §47, including 5-year recapture if the building is sold or ceases to be used as historic property. Investors should consult their own tax advisors. The ability to use HTCs depends on each investor's federal tax position and passive activity rules.
Investor Calculator
What does this look like for me?
Enter a hypothetical investment amount to see what your projected LP returns look like in two scenarios — without the Commercial Development District and with the CDD — so you can see exactly what the district financing does for your return. The federal Historic Tax Credit pass-through is then layered on top.
$
Projected returns — Without CDD vs. With CDD
Without CDD
Senior debt + LP equity, no district financing. LP funds the full equity gap.
Total Distributions$1,286,000
Net Profit$786,000
LP Equity Multiple2.57x
LP IRR17.9%
With CDD
$14.0M par · $10.65M net proceeds · sales-tax-backed under Tenn. § 67-6-104.
Total Distributions$1,481,500
Net Profit$981,500
LP Equity Multiple2.96x
LP IRR22.9%
What the CDD adds for you
+$195,500 in net profit+5.0 pp LP IRR+0.39x equity multiple
Plus federal HTC pass-through (layered on the With-CDD scenario)
+ Your HTC share
$57,800
Pro-rata of $3.96M federal credit
All-In Net Profit
$1,039,300
With CDD + HTC pass-through
Effective Equity Multiple
3.08x
With CDD + HTC
Why the CDD matters at the investor level
The Commercial Development District lets the project capture incremental state and local sales-tax revenue at the resort and use it to service a sales-tax-backed bond that funds eligible public infrastructure. For the LP, this means $10.65M of net CDD proceeds replace a mix of senior debt and developer equity — the LP equity check shrinks by approximately $3.8M and senior interest expense drops, lifting your LP IRR from ~17.9% to ~22.9% and your equity multiple from ~2.57x to ~2.96x. The federal HTC pass-through then layers on top, adding another dollar-for-dollar federal tax credit equal to your pro-rata share of the $3.96M HTC pool.
Calculation methodology
Without CDD: calculated by multiplying your investment by the project's LP equity multiple of 2.572x and LP IRR of 17.93% (V2.1 base case with NMTC removed and the resulting equity gap funded by additional LP equity).
With CDD: calculated by multiplying your investment by the LP equity multiple of 2.963x and LP IRR of 22.93%, reflecting $10.65M of net CDD proceeds displacing ~$6.4M senior debt and ~$4.3M developer equity, plus the resulting interest savings over the operating hold.
HTC pass-through benefit: calculated as your investment ÷ total LP equity in the With-CDD scenario ($30.86M) × total federal HTC pool ($3.96M) × the LP class share (90%). Assumes pro-rata allocation per LP percentage. Actual allocation will be set by the partnership agreement and may include a tax-credit investor as a special allocatee.
Effective equity multiple: includes the federal credit as an after-tax-equivalent cash benefit. Investors with insufficient federal tax liability or who are subject to passive-activity limitations may not be able to fully utilize the credit.
Project Timeline
From acquisition to exit.
A staged construction approach allows the campus to begin generating revenue in late 2028, with full inventory online by mid-2029. Targeted exit in August 2032 at stabilization +1 year.
August 2023
Acquisition
College Street Partners closes on the historic DuBose campus. Initial diligence, Palisociety partnership formalized.
September 2025
Capitalization & Predevelopment
Equity raise complete, construction loan close, CDD application filed with the Tennessee Department of Revenue. Final design, permitting, and site mobilization.
December 2026
Construction Begins
Brasfield & Gorrie breaks ground. Adaptive reuse of Claiborne, Holiday Lodge, and Hacienda Court runs in parallel with new construction (casitas, pool, F&B).
February 2028
Main Campus Delivered
Heart of the property opens: arrival, pool, F&B, event space, 65 historic-building keys.
September 2028
Cabin Phase 1
First wave of casitas delivered—34 keys added to inventory. HTC clock starts.
May 2029
Cabin Phase 2 / Full Delivery
Final 34 casita keys delivered. 133-key inventory complete. Full ramp begins.
August 2030
Stabilization
Year 3 of operations. Full $11.4M NOI run rate. 60% weighted occupancy, $577 ADR.
August 2031
Refinance Window
Construction debt refinanced into permanent senior loan at stabilized valuation.
August 2032
Targeted Exit
Sale at $148.4M (7.5% cap rate) — ~$1.12M per key. LP distribution event triggers final IRR realization.
Sponsor & Project Team
A team built for this project.
College Street Partners is a partnership between Adapt Development and Layne Development Company. Palisociety serves as both equity partner and hotel operator. The full project team brings deep experience in adaptive reuse, hospitality, and tax-incentive structuring.
Sponsor
College Street Partners
Lead Sponsor & GP
Joint venture between Adapt Development and Layne Development Company. Focused on design-forward, contextual projects across the Southeast where thoughtful adaptive reuse and disciplined underwriting drive durable value.
Palisociety
Operating Partner & Equity Co-Investor
$300M+ portfolio operator behind Palihouse, Palihotel, and Arrive Hotels. Their flagship Palihouse brand is purpose-built for design-forward, residential-feel hospitality. Aligned via co-investment.
Adapt Development
Co-Sponsor
Mixed-use, residential, and hospitality developer with a track record across the Southeast. Specializes in turning historic and underutilized assets into durable, design-forward properties.
Distribution & Brand Affiliation
Design Hotels
Boutique Collection Affiliation
A curated network of 300+ independent boutique hotels across 60+ countries, each chosen for design integrity and a strong sense of place. Palihouse Monteagle joins as a member—gaining a globally recognized boutique credential while keeping its name, identity, and Palisociety operating playbook intact.
Marriott Bonvoy
Loyalty & Distribution Platform
Through the Design Hotels affiliation, Palihouse Monteagle plugs into Marriott Bonvoy—Marriott's ~237M-member loyalty program—plus the global GDS, OTA agreements, corporate-rate programs, and group sales force across Marriott's 9,000+ properties. Lower customer acquisition cost, stronger midweek and shoulder-season demand, and a built-in repeat-guest engine.
Project Team
Pfeffer Torode
Architecture
Nashville-based firm with deep experience in hospitality, adaptive reuse, and luxury residential.
Brasfield & Gorrie
General Contractor
One of the Southeast's largest privately-held GCs with extensive hospitality and historic preservation experience.
LandDesign
Master Planning & Landscape Architecture
Award-winning firm leading the campus master plan and landscape strategy.
Thomas & Hutton
Civil Engineering
Civil engineering, infrastructure, and site development.
The Structure Company
Structural Engineering
Structural engineering across new construction and historic adaptive reuse.
Goodwin Mills Caywood
Environmental Consultant
Phase I/II environmental, regulatory, and remediation work.
Capital Structure Advisors
Southkick
Historic Tax Credit Advisor
Leading the SHPO/NPS Part 1 & 2 historic certification process and HTC monetization strategy.
9th & Clinton
CDD & TIF Advisor
Structuring the $14.0M Commercial Development District sales-tax bond and the $2.23M Tax Increment Financing distribution package, working with the Tennessee Department of Revenue and Grundy County.
Paragon Advisors
TIF Consultant
Negotiated and structuring the $2.23M TIF distribution package over years 4–8.
The essence
A regional landmark with long-term cultural and economic value.
Palihouse Monteagle is more than a hotel—it's a generational asset on a 153-year-old campus, in a market that has waited a long time for a destination of its own. With heritage buildings, a category-defining operator, three layers of public-finance support, and disciplined underwriting, this is a project the team has spent years preparing to build the right way.
Ready to learn more?
The full investor data room includes the V2.1 pro forma model, construction budget detail, room-mix-level operating assumptions, the executed Palisociety operating agreement term sheet, the College Street Partners Disclosure Statement and Amended & Restated Partnership Agreement, and HTC/CDD/TIF structure memoranda.
Important. This presentation is confidential and is furnished by College Street Partners (“CSP”), a Tennessee general partnership, solely so that a potential investor may evaluate whether the potential investor has an interest in proceeding with further discussions regarding a possible purchase of partnership interests issued by CSP. It does not constitute an offer to sell or a solicitation of an offer to buy any securities and is not investment advice. Recipients are encouraged to read this presentation and all other materials furnished by CSP, including the Disclosure Statement and the Amended & Restated Partnership Agreement, before making any investment decision. Forward-looking statements reflect expectations only as of the date hereof and are subject to risks and uncertainties; CSP does not undertake any obligation to update them. Except as may be set forth expressly in a written agreement executed by CSP and you, none of CSP, its affiliates, and their respective partners, members, officers, and agents makes any representations or warranties or assumes any responsibility with respect to an investment in CSP or any materials, statements (including financial statements and projections), or information provided here. Recipients should consult their own legal, tax, and financial advisors.
Palihouse Monteagle will join Design Hotels—the curated boutique collection within the Marriott portfolio—giving the property the independent design-forward identity our brand demands and the global distribution scale only Marriott can provide. For investors, this is one of the strongest non-physical drivers of return in the entire deal.
Founded in 1993, Design Hotels is a hand-selected portfolio of 300+ independent boutique hotels across 60+ countries—each chosen for original character, design integrity, and a strong sense of place. Membership is competitive and curated; properties keep their own name, identity, F&B program, and operating playbook. Joining lends Palihouse Monteagle a globally recognized design credential alongside peers like 1 Hotel, Hotel Saint Cecilia, Hotel Esencia, Casa Cook, and Habitas.
Marriott Bonvoy
The world's largest loyalty program.
Marriott Bonvoy is Marriott International's loyalty platform—~237M members earning and redeeming points across 9,000+ properties in 30+ brands. Design Hotels has been a Bonvoy member since 2018, meaning every Design Hotels member property is bookable directly through Marriott channels and accrues Bonvoy points on every paid stay. The result for Palihouse Monteagle: an independent identity in front of guests, and Marriott's full distribution stack behind the scenes.
By the numbers
Bonvoy Members
~237M
Repeat-booking engine
Design Hotels Properties
300+
Across 60+ countries
Marriott Properties
9,000+
30+ brands worldwide
Bonvoy Direct Bookings
50%+
Of room nights, member-direct
Five ways this lifts the investment
Each of these flows directly to NOI and exit valuation, and is not fully reflected in the underwritten 19.9% LP IRR.
01
Lower Customer Acquisition Cost
Independent boutique hotels typically pay 15–25% commission to OTAs (Booking.com, Expedia) for bookings. Bonvoy member-direct bookings carry materially lower fees—often a 3–5% Marriott program charge instead of double-digit OTA commission. With 50%+ of room nights expected to come through Bonvoy at Design Hotels properties, this shift compounds into meaningful margin every year of operations.
02
Loyalty-Driven Repeat Bookings
Bonvoy members earn 10 base points per dollar spent at Design Hotels properties, plus elite tier bonuses (up to +75% for Ambassador and Bonvoy Platinum/Titanium members). Members actively choose Bonvoy properties to consolidate point earnings—creating a built-in repeat-guest pipeline that an unaffiliated independent hotel simply cannot replicate.
03
Corporate, Group & Wholesale Pipeline
Plugging into Marriott unlocks negotiated corporate-rate agreements with Fortune 500 travel programs, Marriott's group RFP system for meetings and weddings, and global wholesale/tour operator distribution. This is how we fill midweek and shoulder-season room nights that pure leisure demand can't cover—and is particularly powerful for retreats and full-property buyouts.
04
Global GDS & OTA Distribution
Design Hotels properties are listed in the global GDS systems (Sabre, Amadeus, Galileo, Worldspan) used by every travel agent worldwide, and benefit from Marriott's negotiated OTA rates that are typically more favorable than what an independent hotel can secure on its own. Plus the Bonvoy "shop the world" engine cross-sells Palihouse Monteagle to anyone shopping any other Marriott property.
05
Brand Credibility & Exit Multiple
A Design Hotels affiliation is a recognized signal of design quality and operational standards—important for both the booking guest and the eventual buyer. Hotel investment buyers (REITs, private equity, family offices) consistently pay higher multiples for affiliated boutique assets because of de-risked operations, embedded distribution, and built-in upgrade-path optionality (Autograph Collection, Tribute Portfolio).
The Bonvoy guest profile
Demographics
Skews affluent, design-aware, well-traveled. Average Bonvoy member household income exceeds $150K; elite-tier members exceed $250K. The exact target Palihouse Monteagle is positioned for.
Travel Behavior
Books 5–8 hotel stays per year on average. Elite members book 15+ nights annually and actively seek Bonvoy properties to consolidate earnings—turning a "discovery" booking into a multi-stay habit.
Drive-To Match
Bonvoy members in Nashville, Atlanta, Birmingham, Chattanooga—our exact feeder markets—are already searching Marriott for weekend escapes. Today none find a Marriott-affiliated lifestyle resort within driving distance.
What stays Palihouse
Independent identity. Marriott reach.
Design Hotels is a distribution and loyalty affiliation—not a flag, not a franchise, not a brand replacement. The property is named Palihouse Monteagle. The signage is Palihouse. The website is Palihouse. The F&B is operated by Palisociety. The design language is Pfeffer Torode + Palihouse. Every guest-facing surface stays under our design control. The negotiated term sheet specifically names Paligroup Management Company as the operator of record — Marriott's role is operating quietly behind the scenes, powering reservations, loyalty, corporate sales, and distribution, while Palihouse Monteagle remains a singular, design-forward independent boutique resort.
Press & recognition
Palisociety properties have built one of the most decorated press portfolios in independent boutique hospitality.
Condé Nast TravelerTravel + LeisureThe New York TimesArchitectural DigestWallpaper*VogueForbesSkiftMICHELIN GuideHemispheres
MICHELIN Guide 2025
One Key designation
In 2025, the MICHELIN Guide named six Palisociety properties to the prestigious One Key list — the hospitality equivalent of a MICHELIN Star — including Le Petit Pali Brentwood, Palihouse West Hollywood, Palihouse Hyde Park Village, and the ARRIVE collection (Wilmington, Austin, Memphis).
Condé Nast Traveler
Hot List & Best New Hotels
Multiple Palisociety openings have appeared on Condé Nast Traveler's annual Hot List of the best new hotels in the world, including Le Petit Pali Laguna Beach in the 2025 spring openings feature. The same publication's Gold List recognizes Palisociety as a category-leading independent operator.
Travel + Leisure
IT List · World's Best
Travel + Leisure has named multiple Palisociety properties to its annual "IT List" of best new hotels — including Palihotel Seattle — and the ARRIVE collection has earned World's Best Awards recognition for its design-forward, residential approach to hospitality.
"Palisociety properties have won accolades from Condé Nast Traveler, Travel + Leisure, The New York Times, Skift, Forbes, Architectural Digest, Vogue, Wallpaper*, Hemispheres, and many more — they have become a benchmark for what an independent design hotel can be."
Peer set: Design Hotels alumni
A curated group of independent boutique hotels we'd be proud to be listed alongside.
1 Hotel Central Park
New York, NY
TypeLifestyle / Sustainable
ADR$650+
Hotel Saint Cecilia
Austin, TX
TypeBoutique / Music
ADR$700+
Hotel Esencia
Riviera Maya, MX
TypeResort / Casita
ADR$1,200+
Habitas Tulum
Tulum, MX
TypeResort / Wellness
ADR$600+
Negotiated term sheet — material concessions secured
Design Hotels has issued a term sheet (dated January 5, 2026) outlining the principal business terms for Palihouse Monteagle's membership. Notably, DH applied significant introductory discounts — a strong indicator they consider Palihouse Monteagle a strategically valuable addition to the collection.
Membership Term
15 yrs
Initial 5 + two automatic 5-yr renewals
Starting Date
May 2029
Aligns with Cabin Phase 2 full delivery
Total Annual Fixed Fees
~$27.6K
Approx. 0.12% of stabilized revenue
DH Discount on Setup
50%
Initial Membership Fee · DH-funded incentive
Negotiated fee structure
Fee
Amount
Discount Applied
Cadence
Initial Membership Fee
Due on Agreement execution
$6,420
50% off
One-time
Annual Membership Fee
Includes both 5-yr renewal periods
$20,063
25% off
Annual · 3% escalator
Annual Services Fee
Includes both 5-yr renewal periods
$7,558
60% off
Annual · 3% escalator
Distribution Tech Fee
Tiered by support hours used
$0 – $1,200
—
Annual
Total fixed annual cost (Year 1)
~$27,621
Approx. 0.12% of stabilized hotel revenue
In addition to the fixed fees above, distribution-channel fees apply on a per-booking basis (e.g., 13% via designhotels.com, 11% via Marriott Direct, 5% + $5.35 via GDS, 1% via Palihouse Monteagle's own website). A 4% Bonvoy loyalty program fee applies to qualifying revenue. These variable fees are typically materially lower than the OTA commissions (15–25%) an unaffiliated independent hotel pays on equivalent bookings.
Why these concessions matter
DH discounted three of the four fees — collectively ~40%+ off list. They want this property in the collection.
Design Hotels typically charges full sticker for new member properties. The fact that DH applied a 50% discount on the IMF, 25% on the AMF, and 60% on the ASF — and locked those discounted rates across both 5-year renewals — is a meaningful signal of how DH evaluates Palihouse Monteagle's strategic fit. The term sheet also confirms Paligroup Management Company as the operator-of-record, locks in 15 years of distribution access via the auto-renewal structure, and ties the agreement's starting date to May 1, 2029, which aligns with our Cabin Phase 2 full-delivery milestone.
Integration timeline
Stage
Milestone
Jan 2026
Design Hotels term sheet issued — principal business terms negotiated. Discounts secured (IMF 50%, AMF 25%, ASF 60%).
Construction phase
DH curatorial review, fire & life-safety third-party audit (cost included in IMF), brand criteria compliance walkthrough.
~6 months pre-opening
U.S. Services and Membership Agreement executed. Marriott systems integration begins (PMS, distribution, loyalty).
By May 1, 2029
Starting Date — property goes live in Bonvoy. Bookable on marriott.com, designhotels.com, GDS, and through Marriott group sales.
Lower CAC. Higher occupancy. Better exit multiple. All without giving up the Palihouse.
The Design Hotels / Marriott Bonvoy affiliation is the kind of structural advantage that separates a good hotel investment from a great one. It compresses the marketing ramp, de-risks the stabilization period, expands the buyer universe at exit, and adds revenue line items that pure independents simply cannot reach. And the underwritten 19.9% LP IRR doesn't fully model any of it.
Design Hotels has issued a non-binding term sheet (dated January 5, 2026) outlining the proposed business terms for Palihouse Monteagle's membership. The term sheet is, by its express terms, a "non-binding expression of interest" — final terms are subject to execution of a definitive U.S. Services and Membership Agreement and to Design Hotels' standard fire/life-safety audit and curatorial confirmation. Term sheet figures presented here (fees, discounts, starting date, 109-room reference, 15-year term structure) are drawn directly from the negotiated document. Marriott Bonvoy and Design Hotels are trademarks of Marriott International, Inc. Bonvoy member, property, and revenue figures are based on Marriott International's most recent public disclosures. The term sheet is governed by the laws of the State of Maryland. The contents of the term sheet are confidential per its own confidentiality provisions; this material is shared only with approved investors who have accepted the confidentiality acknowledgement gating this offering memorandum.
