Midas Hospitality is thinking bigger with its new $100 million fund, Midas Capital.

Midas Hospitality is thinking bigger with its new $100 million fund, Midas Capital.

Previously, the Maryland Heights-based hotel management group raised $100 million from 200 investors over a 12-year span to fund specific hotel acquisitions and new developments. Now, Midas is aiming to raise another $100 million by the middle of 2019 for 10-15 new hotel developments and acquisitions across the Midwest and Southeast that have yet to be announced.

Investors will see a target return of about 16-18 percent, with 8 percent of the return being paid annually, with many qualifying for tax-deferred income, said Josh Burrell, director of investments for Midas Capital. The fund has raised $10 million so far, and Burrell said distributions will begin by Sept. 30. The company also is projecting that the 10-15 new hotel projects will add 350 permanent jobs.

“Investors are worried about volatility but we’ve minimized that by having a portfolio of hotels, which is more attractive. There’s less idiosyncratic risk of just owning one piece of commercial real estate,” Burrell said.

A Saint Louis University alum, Burrell leads Midas Capital’s New York office and is responsible for strategy development, acquisition due diligence, investor relations and sector research. Prior to joining Midas Capital, Burrell served as vice president in the Capital Advisory Group for Lazard Asset Management and as a senior analyst for Moody’s in New York and London. He’ll work along with the fund’s other director of investments, Eric Goettelmann, who heads the St. Louis office and has more than 10 years of experience in finance and business development, including serving as controller for Midas Hospitality.

Founded 12 years ago, Midas Hospitality counts 40 hotels in its portfolio — all middle-market hotels that aren’t as impacted by cuts in business travel and can weather swings in the economy. Recent projects include a $28 million,100-room Hampton Inn and a 107-room Home2 Suites in Minnesota; a $20 million Residence Inn in Charlotte, North Carolina; and a 110-room Courtyard by Marriott in Clemson, South Carolina, that it acquired $16.5 million. Midas Hospitality reported $79.4 million in revenue last year, a 1,626-percent spike since 2006.

Across the U.S., hotel demand is expected to outpace supply. Data from STR and Tourism Economics showed that supply will grow 2 percent and demand 2.3 percent in 2018. In 2019, supply is projected to increase 1.9 percent and demand 2 percent