Off Road and the founder of Iron Mountain Hot Springs, Steve Beckley, partnered to develop a natural hot spring facility (ZHS) in La Verkin, Utah, which is 25 minutes from Zion National Park, one of the most visited National Parks with 4.5-5mm annual visits. The 15-acre site includes access to natural hot spring water via a 75-year water lease with the water district (public agency). Phase 2 may include more pools should demand exceed our underwriting, and likely a 100-200 room hotel.
Off Road Fit
Rare opportunity to own a large natural hot spring near a huge tourist attraction. ZHS has very high projected returns on capital. The water lease gives us the right to use 40% of the water the hot spring produces. It took four years to secure the lease. In the event the water district decides to sell or lease any excess hot spring water, the water district would likely have to go through an RFP process like the one we undertook which may take years. Further, we may likely be in the best position to win such RFP.
Therefore, ZHS may have limited competition in the short- to medium-term, if ever.