Today, we double down on a proven winner. Tequila II, our stake in the Herencia de Agaves distillery in Mexico, was immediately validated when the team won double gold for best tequila and best blanco this summer.
Now they’re expanding the vision to establish a beachhead in Tequila’s proliferating tourism industry by creating the first-ever destination distillery.
I’m both extremely excited and bullish on this one, and I think you will be too.
Already sold on the opportunity?
👉 Express interest here.
Table of Contents
👴🏽 This isn’t your abeulo’s tequila investment
While reviewing the stunning, volcano-view renderings for “House of Rare,” I had a realization: this isn’t a bet on tequila.
Strip away the agave, and you see the real asset: an architectural landmark on prime real estate, designed to capture recurring revenue from storage, tourism, and hospitality.
If this were in Napa or Tuscany, the valuation would be twice as high. Because it’s in Jalisco—a region on the cusp of a tourism boom—it’s priced like an industrial facility.
That’s the arbitrage.
This is an infrastructure play, and three other luxury industries have already written the playbook. Napa, Kentucky, and Scotland all proved that investing in experiential infrastructure—not just the liquid—generates compounding returns across real estate, operations, and brand.
This $400K investment in Mexico’s first architectural barrel facility isn’t an alternative asset. It’s a real estate arbitrage backed by 50 years of proof.
🍷 Napa – more than just farmland
Napa’s 40-year journey from farmland to a $2.5B tourism giant is the endgame. Wineries that invested in architecture and hospitality (Opus One, Robert Mondavi) now command 2-3x the valuation of those that only produce.
The proof? In 2021, the Four Seasons Napa Valley sold for $2.09 million per room, which was a near-record price. That’s the (current) valuation ceiling for established experiential destinations.
Tequila, with 1.2M annual visitors to Napa’s 3.7M, is on the same trajectory but with a 4x monetization gap to close. The average Napa visitor spends ~$675; in Tequila, it’s ~$167. That gap is the opportunity, and it will be closed by the exact kind of high-end infrastructure House of Rare is building.
🥃 Bourbon – 80 proof profits
The Kentucky Bourbon Trail, launched in 1999, now draws 2.7 million visitors and fuels a $9 billion industry. Distilleries like Heaven Hill followed a smart, phased model: validate demand with a small visitor center, then scale with a $19 million “Bourbon Experience” that now generates millions in high-margin tours and direct sales.
Tequila is where bourbon was 10-15 years ago, but it’s growing faster (15-19% annually) and has a geographic trump card: it’s a 3-4 hour drive from Puerto Vallarta, a resort destination with millions of built-in tourists seeking authentic experiences.
🛢️ Scotch – booze as annual recurring revenue
For 50 years, Scotch whisky has run a brilliantly simple B2B model: selling casks to collectors and charging annual storage fees. This infrastructure business creates steady, long-term revenue that is completely independent of brand marketing or tourism trends.
Companies like Gordon & MacPhail built £50-£100M valuations on this model alone. You’re not betting on which train wins; you’re owning the rails.
3️⃣ The trifecta
House of Rare is the first to integrate all three proven models into a single, phased operation, creating diversified, layered revenue.
- Phase 1: The Scotch Model (Immediate B2B Cash Flow) This investment funds Phase 1: the 300-barrel architectural storage facility. This immediately generates $80,000 – $100,000 in recurring annual revenue from storage contracts. This B2B income insulates the investment from tourism volatility.
- Phase 2: The Bourbon Scaling (Tourism & Experiences) Once proven, Phase 2 expands storage to 900 barrels (ramping B2B revenue to $320k+) while adding the “Bourbon” layer: premium tasting rooms and experiential tours, capturing high-margin, direct-to-consumer revenue.
- Phase 3: The Napa Transformation (Hospitality & Events) This is the “Napa” endgame. Phase 3 adds modular, high-design suites and event spaces to capture luxury hospitality revenue ($350k+ potential from suites alone). The flexible design means units can be hotel suites, event spaces, or more storage, allowing the business to pivot based on real-time market demand.
This isn’t a bet on a tequila brand. It’s an investment in the appreciating, cash-flowing infrastructure that all brands will need.
You are funding a multi-use facility that
- Generates immediate B2B rental income (Phase 1).
- Sits on appreciating land in an emerging tourism hub (7-9% annual growth).
- Is positioned to capture the coming boom in luxury experiential tourism.
The tequila boom brought this deal to light. The real estate economics—validated by 50 years of proof from Napa, Scotland, and Kentucky—are what make it a uniquely intelligent investment.
I’ll drink to that 🥂
Once you’ve read the memo, you can express interest here.
Cheers,
Wyatt
