Hospitality Offering For Sale

Transcription

1 Hospitality Offering For Sale HOLIDAY INN NORTH PHOENIX opportune value-add full service hotel located off I-17 with freeway visibly Sudhir "Sid" Tewari

2 Executive Summary OFFERING SUMMARY Sale Price: Contact Listing Agent for Price Guidance 2017 NOI: $654,323 Lot Size: 3.41 Acres Year Built/Renovated: 1981 / 2012 Building Size: 98,256 Floors: 4 Rooms 174 PROPERTY HIGHLIGHTS Value add opportunity with tremendous upside potential. Strong trend of year-over-year revenue increases at subject property as well as the immediate hotel market. Property revenues are trending upwards, up 5.5% in Hotel revenues Up 14.7% for the running three months with no signs of slowing down! Great freeway visibility located off interstate 17. IHG willing to extend a 10 year license to qualified investor with completion of the new owners PIP. Hotel located in the rapidly developing North Phoenix market with multiple housing communities, apartments, retail centers and malls coming to the area. Located down the road from the iconic Metro Center Mall. Meeting/Banquet space that can accommodate up to 200 People Hospitals and corporate headquarters nearby. Much upside with over 500 hotel rooms leaving the market and being converted to assisted living facilities. sid.tewari@

3 Property Description OFFERING OPPORTUNITY NewGen Advisory has been given the exclusive right to offer for sale the fee simple interest in the Holiday Inn North Phoenix hotel located in Phoenix, AZ the fifth largest city in America. This hotel is located just minutes away from the iconic Metro-Center Mall where movies such as "Bill and Teds Excellent Adventure" was filmed and which is currently undergoing a revitalization project after being purchased by the Carlyle Group. The hotel is located in very diverse market with numerous demand generators as well as a lot of up and coming development includes new homes, apartments, retail, and shopping malls. Additionally and very importantly this property presents and investor with the opportunity to acquire a value-add asset which can very quickly achieve its fair share of market revenue through the implementation of effective sales and marketing, revenue management, and restaurant operation improvements. *SIGNIFICANT UPSIDE POTENTIAL- A new operator has the opportunity to add significant value to this asset by closing the gap that currently exists between this hotel and its fair market share with either a focused renovation and property update to current brand standards per the current new owner PIP which would intern give a new owner a fresh 10 year license from IHG or to re-position and re-brand the hotel in the future with a new franchise. Their also stands to be significant upside to be gained by a seasoned full service operator at this property. The current ownership group whilst being great limited service hotel operators have never operated a full service hotel of this size before. Current management has not maximized revenues from the bar and restaurant, neither capitalized on the group business in the area, nor have they gone after many banquets, thus leaving significant untapped revenues streams for a new owner to go after and benefit from. Another source of upside for this hotel is going the be the recent decrease in rooms count in this immediate market due to 3 hotels being converted into senior and assisted living facilities. *UPSIDE IN RESTAURANT OPERATIONS- There is a tremendous opportunity for a new operator to take advantage off and turn around the restaurant revenues at this full service hotel. While the hotel revenues continue to rise, but still under-performing vs. its competitive set, it by itself would provide good returns. The Pickle-Back Bar and Grill which is the onsite restaurant has taken time to catch on due to the current ownership's lack of knowledge and experience in restaurant operations causing it to eat away at the hotels profits. Stabilizing the restaurant and capitalizing on the banquet room and meeting space would lead to significant gains in a new owners bottom line. *RAPIDLY DEVELOPING AREA WITH DEMAND GENERATORS CLOSE BY- The Holiday Inn North Phoenix is located right off Interstate 17 with great freeway visibility. The surrounding area is buzzing with optimism which shows by the development going on around the hotel and in the immediate area. The iconic Metro-Center Mall less than 2 miles down the road is experiencing a huge revitalization. There are multiple new housing communities that are being built around the area coupled with plenty of new retail and apartment buildings. STRONG YEAR OVER YEAR REVENUE GAINS TREND : A new investor would get to enjoy the trend of revenue increases that are not only occurring at this property but in the market as a whole. This will be immediate momentum for a new operator coming into this Hotel, and will help lay the foundation for a very bright and profitable future in the years ahead. Currently the Holiday Inn North Phoenix only sits at 80.6% market penetration index leaving a huge chunk of market share ready to be captured by a new operator who can implement much more aggressive sales, revenue management and market techniques coupled with a property update renovation. Time Period OCC ADR RevPAR December 2015 vs 2014 Percent Change (%) 17% 13.3% 32.6% December 2016 vs 2015 Percent Change (%) 16.1% 5.2% 22.1% December 2017 vs 2016 Percent Change (%) 8.1% -3.3% 5.0% sid.tewari@

4 Demand Generators NEARBY LANDMARKS AND ATTRACTIONS Castle N Coaster 1.5 miles Heard Museum 8.9 miles The Art Institute of Phoenix 2.1 miles Phoenix Art Museum 9.3 miles Deer Valley Rock Art Cemter 6.1 miles Arizona Capitol 10.3 miles Arizona Broadway Theatre 6.7 Miles Copper Square 10.5 miles Peoria Sports Complex 6.9 miles Historic Heritage Square 10.6 miles Wrigley Mansion 7.3 miles Phoenix Museum of History 10.6 miles Maryvale Baseball Park 7.8 miles Arizona Science Center 10.6 miles Biltmore Fashion Park 8.0 miles Chase Field 10.7 miles sid.tewari@

5 Hotel Features and Amenities COMMON AREA FEATURES On-Site Business Center Heated Outdoor Pool Outdoor Whirlpool On-Site Pickle Back Bar and Restaurant Banquet and Meeting Room (Up to 200 People) Lobby with Sitting Area and Access to Public Restroom Two Elevators Guest Laundry Room ROOM AMENITIES Sofa Bed/ Sleeper Couch Iron and Ironing Board Separate Hanging Closet In-Room Heating and A/C Controls Private Bathroom w/ Hair Dryer and Walk in Shower Mini Refrigerator/Coffee Maker/Tea Maker Flat Screen TV/Cable/Satellite Work Desk with Lamp Exercise Facility

6 Property Impressions

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9 Aerial Property Impressions

10 Demographics Map POPULATION 1 MILE 2 MILES 3 MILES Total population 19,393 64, ,837 Median age Median age (male) Median age (Female) HOUSEHOLDS & INCOME 1 MILE 2 MILES 3 MILES Total households 8,309 25,845 54,819 # of persons per HH Average HH income $50,158 $53,263 $57,038 Average house value $178,726 $189,979 $193,634 * Demographic data derived from 2010 US Census sid.tewari@

11 Location Maps

12 Arizona California Texas 2111 E Highland Ave 5101 E La Palma Ave 1106 North State Hwy 360 Suite 305 Suite 100-A Suite 302 Phoenix, AZ Anaheim Hills, CA Grand Prairie, TX 75050