Great Lakes Region (IL, IN, OH, MI, PA)
A $6.62M secured convertible note funding the conversion of 11 limited-service hotels (~781 units) into extended-stay and workforce housing.
Kiteville Investment LLC, a Philadelphia-based extended-stay operator founded in 2018 by CEO Budo Bunul, is acquiring 11 limited-service hotels (about 781 units) across Illinois, Indiana, Ohio, Michigan and Pennsylvania and converting them into extended-stay and workforce housing. The business plan is to buy at a basis well below replacement cost (roughly $21K–$23K per unit), renovate, and lease to longer-stay residents whose occupancy is steadier than transient hotel demand.
Kiteville already runs this playbook at scale: 906 units live across 16 properties in 15 markets, operated on its own centralized platform for booking, self check-in, operations and AI-driven pricing. In Owego, New York, Kiteville bought an 80-unit motel for $2.2M, invested about $600K in renovation and, by its own figures, reached stabilized extended-stay occupancy in about seven months at a roughly 49% NOI margin.
This offering funds a $6.62M secured convertible note, about 20% of a ~$33.1M capitalization, sitting behind a $23.17M senior facility and ahead of $3.31M of sponsor cash equity.
The note pays 12% (Year 1 paid-in-kind, quarterly cash thereafter). If the sponsor repays early, the payoff is the greater of 1.40x funded principal or an 18% IRR, plus a 2% exit fee. If the note is not repaid, it converts into 45% of the equity of the funded portfolio.
EXTERIORS
COMMUNITY AREAS
APARTMENT INTERIORS
Date and time coming soon. Kiteville founder Budo Bunul walks through the portfolio, the conversion playbook and the note terms, with live Q&A. Registration link to follow; the recording will be posted here afterward.
Photos on this page show Kiteville's existing properties in Owego, NY and Bradford, PA, to illustrate the finished Kiteville product. They are not among the 11 properties in the Kiteville portfolio. Operating results are sponsor-reported.
Key metrics at a glance. Talk to investor relations for the full deal package.
How Kiteville turns overlooked motels into next-generation extended-stay housing.
An on-site tour of Kiteville Owego in upstate New York.
Kiteville leadership on the Owego turnaround and the extended-stay model.
Life at Kiteville Owego from a resident’s perspective.
Kiteville is a Philadelphia-based extended-stay operator founded in 2018 by Budo Bunul, a 20-year hospitality and real estate operator who spent 12 years at Starwood Hotels. Its model is simple: acquire underperforming motels in markets with strong demand, convert them into modern, minimalist furnished suites, apply the Kiteville brand standard, and run them on a centralized platform for booking, self check-in, operations and pricing.
Today Kiteville has 906 units live across 16 properties in 15 markets, from Philadelphia and Upper Darby, PA to Detroit, Tecumseh and Dowagiac, MI; Merrillville, IN; and Paris, IL. Its five-step playbook (Acquire, Convert, Brand, Operate, Optimize) is the same one the Kiteville portfolio will follow.
Founder & CEO, Kiteville
Chief Operating Officer, Kiteville
Resident Profile: Traveling and contract professionals, healthcare and construction crews, relocating employees, and local workforce residents who need furnished, flexible housing for weeks to months. Kiteville rents by the night, week or month with easy self check-in and no long-term lease required.
Unit Mix: Furnished studios and suites with private baths, kitchenette essentials (microwave, mini-fridge, coffee), workspace, smart TV and high-speed Wi-Fi. At Kiteville Owego, monthly rates run about $1,450–$1,899.
For more information, view Kiteville Investment LLC's Investment Memorandum.
| Senior Facility (70% LTC) | $23.17M |
|---|---|
| Crowdlender Secured Convertible Note | $6.62M |
| Sponsor Cash Equity | $3.31M |
| Total | $33.1M |
| Acquisition (11 assets) | ~$16.5M–$18.05M |
|---|---|
| Renovation | ~$9.1M |
| Reserves, Fees & Closing Costs | Balance |
| Total | $33.1M |
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