days inn sturbridge - loopnet · room revenue multiplier 3.2 room revenue multiplier- pro forma 3.2...

DAYS INN

STURBRIDGE

OFFERING MEMORANDUM

NON-ENDORSEMENT & DISCLAIMER NOTICE

CONFIDENTIALITY & DISCLAIMERThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is

intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made

available to any other person or entity without the written consent of Marcus & Millichap. This Marketing

Brochure has been prepared to provide summary, unverified information to prospective purchasers, and

to establish only a preliminary level of interest in the subject property. The information contained herein is

not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investi-

gation, and makes no warranty or representation, with respect to the income or expenses for the subject

property, the future projected financial performance of the property, the size and square footage of the

property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos,

the compliance with State and Federal regulations, the physical condition of the improvements thereon, or

the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue

its occupancy of the subject property. The information contained in this Marketing Brochure has been

obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not

verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation

regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or

completeness of the information provided. All potential buyers must take appropriate measures to verify

all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real

Estate Investment Services, Inc.

© 2018 Marcus & Millichap. All rights reserved.

NON-ENDORSEMENT NOTICEMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee

identified in this marketing package. The presence of any corporation’s logo or name is not intended to in-

dicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap,

its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap,

and is solely included for the purpose of providing tenant lessee information about this listing to prospec-

tive customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

JERRY SWONFirst Vice President Investments

National Hospitality GroupManhattan Office

Office 212.430.5219 Cell 908.625.6934

[email protected] NY 10401248594

NJ 0999581

TIM MCCAFFREYAssociate

National Hospitality GroupManhattan Office

Office 212.430.5197 Cell 516.510.3075

[email protected] NY 10401278221

EXCLUSIVELY LISTED BY

O F F I C E S N A T I O N W I D E A N D T H R O U G H O U T C A N A D A

WWW.MARCUSMILLICHAP.COM

DAYS INNSTURBRIDGE

400 ROUTE 15

STURBRIDGE, MASSACHUSETTS 01566

01 EXECUTIVE SUMMARYOffering Summary • Vital Data • Annualized Operating Data •

Executive Summary • Investment Overview • Summary Of Terms

TABLE OF CONTENTS

EXCLUSIVELY LISTED BY

07 PROPERTY DESCRIPTIONSite Map • Features / Amenities • Local / Regional Map • Area Attractions

13 FINANCIAL OVERVIEWMarket Trend • RevPAR Comparison • Profit & Loss Summary • Five-Year Cash Flow Pro Forma • Five-Year IRR

22 COMPETITVE PROPERTY SET Competitve Properties Map • Competitve Properties

25 MARKET OVERVIEWDemographic Summary • Market Overview

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as-sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate

Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACT ID Z0331595

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EXECUTIVESUMMARY

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400 ROUTE 15STURBRIDGE, MASSACHUSETTS 01566

VITAL DATA

Cap Rate 12.3%

Cap Rate - Pro Forma 11.2%

Room Revenue Multiplier 3.2

Room Revenue Multiplier- Pro Forma 3.2

Price/Room $56,173

OFFERING SUMMARY

Purchase Price $4,550,000

Down Payment $1,137,500 / 25%

Total Number of Rooms 81

Occupancy 69.7%

ADR $68.64

RevPAR $47.87

Year Built 2001

Number of Stories 3

Type of Ownership Land Lease at No Cost

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ANNUALIZED OPERATINGDATA

ANNUALIZED OPERATING DATA

INCOME 2017 % OF GR PRO FORMA % OF GR

Room Revenue $1,415,215 100.0% $1,443,660 100.0%

Gross Revenue $1,415,215 100.0% $1,443,660 100.0%

Total Expenses $857,175 60.6% $935,496 64.8%

Net Operating Income $558,040 39.4% $508,164 35.2%

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INVESTMENT OVERVIEW

Marcus & Millichap has been chosen to exclusively market for sale the Days Inn Sturbridge, a three-story 81-room hotel conveniently located on Route 15. The hotel is approximately 20 miles from Worchester Regional Airport. Amenities include: fitness center, complimentary WiFi, picnic area, laundry facility, elevator, complimentary breakfast, and outdoor pool. Guest rooms feature a television, desk, microwave, refrigerator, telephone, daily housekeeping, iron and ironing board, hair dryer, and coffee maker.

INVESTMENT SUMMARYThe Days Inn Sturbridge represents the opportunity to acquire a well-maintained hotel located in a stable market. Our Pro Forma analysis assumes an investor will increase operating efficiencies through cost management and modest revenue growth.

INTEREST OFFEREDThe Days Inn Sturbridge, an 81-room hotel located at 400 Route 15, Sturbridge, Massachusetts 01566 is offered on a 99-year land lease at no cost (operator pays utilities).

FRANCHISEWyndham Hotels & Resorts is the world’s largest and most diverse hotel company with over 7,800 properties and 678,000 rooms in 72 countries. With highly recognizable brands and hotel choices in every category from upscale to economy, Wyndham offers many lodging choices around the world. Days Inn is a leading global brand in the economy segment with more guest rooms than any other economy brand in the world with over 1,850 properties worldwide.

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INVESTMENT HIGHLIGHTS

► Located Approximately 20 Miles from Worchester Regional Airport

► Proximity to Area Attractions - Old Sturbridge Village, Roseland Park Golf Course, Roseland Cottage, Clark University, Worchester Polytechnic Institute, Thompson Speedway Motorsports Park, Fitton Field, Little River Plaza Shopping Center, Harrisville Gold Course, Volleyball Hall of Fame

TERMS OF SALEThe Days Inn Sturbridge is offered at $4,550,000 based on a capitalization rate of 12.3 percent. Historic operating documentation and third party reports may be found in the online document data portal.

PROPERTY TOURSProspective purchasers are encouraged to visit the subject property prior to submitting offers. However, all property tours must be arranged with the Marcus & Millichap listing agents. Please do not contact the tenants, on-site management or staff without prior approval.

PROPOSED FINANCING

FINANCING

Loan Amount $3,412,500

Loan Type Proposed New

Interest Rate 5.50%

Amortization 25 Years

Loan information is time sensitive and subject to change. Contact your local Marcus & Millichap Capital Corporation representative.

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PROPERTY DESCRIPTION

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FEATURES AND

AMENITIES

► Complimentary WiFi

► Fitness Center

► Laundry Facility

► Complimentary Breakfast

► Complimentary Parking

► Complimentary Newspaper

► Fireplace

► Picnic Area

► Outdoor Pool

► Elevator

► Pet Friendly

COMMON AREA FEATURES

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► Complimentary WiFi

► Television

► Premium Television Channels

► Coffee / Tea Maker

► Microwave

► Refrigerator

► Iron / Ironing Board

► Hair Dryer

► Desk

► Daily Housekeeping

► Telephone

GUEST ROOM AMENITIES

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MAPPING

LOCAL MAP REGIONAL MAP

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AREA ATTRACTIONSAREA ATTRACTIONS DISTANCE

Old Sturbridge Village 3.8 Miles

Tinkerville Brook Preserve 13.5 Miles

Roseland Cottage 15.0 Miles

Roseland Park Gold Course 15.9 Miles

Little River Plaza Shopping Center 17.7 Miles

Harrisville Golf Course 18.4 Miles

Auburn Mall 19.0 Miles

Thompson Speedway Motorsports Park 19.9 Miles

Fitton Football Stadium 22.4 Miles

College of the Holy Cross 22.5 Miles

Fitton Baseball Field 22.6 Miles

Clark University 23.5 Miles

Worcester Polytechnic Institute 25.1 Miles

Volleyball Hall of Fame 38.6 Miles

COMPANY LOCAL EMPLOYEES

UMass Memorial Hospitals Inc. 9,577

University Massachusetts Inc. 8,974

Office Sponsored Programs 4,469

Canterbury Towers 3,900

Mass Mutual 3,500

Adult Endocrinology Department 3,020

Walk to Cure Cancer 3,020

Saint-Gobain 3,000

US Department of Air Force 3,000

Walmart 2,641

MAJOR EMPLOYERS IN MARKET

Fitton Baseball FieldRoseland Cottage Worchester Polytechnic Institute

Clark University

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FINANCIALANALYSIS

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MARKET TREND

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REVPAR COMPARISON

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PROFIT AND LOSS SUMMARY

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5-YEAR CASH FLOW PRO FORMA

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5-YEAR IRR

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COMPETITIVE PROPERTY SET

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COMPETITIVE PROPERTY SET

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Hotel City, State Zip Rooms Open

Days Inn Sturbridge Sturbridge, MA 01566 81 2001

1 Comfort Inn & Suites Colonial Sturbridge Sturbridge, MA 01566 77 1963

2 Super 8 Sturbridge Sturbridge, MA 01566 55 1967

3 Econo Lodge Sturbridge Sturbridge, MA 01566 53 1972

4 Economy Lodge Sturbridge, MA 01518 48 1940

5 La Quinta Inns & Suites Sturbridge Sturbridge, MA 01518 61 1988

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DEMOGRAPHICS HIGHLIGHTS

27,597

$60,755 $244,897

POPULATION STATISTIC

INCOME STATISTIC HOUSING STATISTIC

EMPLOYMENT BY INDUSTRIES

III

POPULATION 5 MILES 10 MILES 25 MILES

2022 ProjectionTotal Population

28,301 71,948 995,231

2018 EstimateTotal Population

27,597 69,403 973,791

2010 CensusTotal Population

27,091 68,382 959,627

2000 CensusTotal Population

25,576 63,786 905,818

Daytime PopulationsTotal Population

25,619 54,753 933,404

HOUSEHOLDS 5 MILES 10 MILES 25 MILES

2022 ProjectionTotal Households

11,421 28,427 379,116

2018 EstimateTotal Households

11,024 27,112 366,406

Average (Mean) Household Size 2.47 2.52 2.51

2010 CensusTotal Households

10,782 26,614 360,741

2000 CensusTotal Households

10,147 24,349 340,579

HOUSING UNITS 5 MILES 10 MILES 25 MILES

Occupied Units

2021 Projection 11,421 28,427 379,116

2016 Estimate 12,065 29,485 388,724

HOUSEHOLDS BY INCOME 5 MILES 10 MILES 25 MILES

2018 Estimate

$200,000 or More 4.30% 4.60% 5.07%

$150,000 - $199,000 6.85% 7.17% 6.57%

$100,000 - $149,000 15.76% 18.43% 16.49%

$75,000 - $99,999 13.31% 14.45% 13.70%

$50,000 - $74,999 17.49% 18.68% 17.42%

$35,000 - $49,999 11.92% 11.10% 11.11%

$25,000 - $34,999 9.08% 8.26% 8.33%

$15,000 - $24,999 10.56% 9.06% 9.35%

Under - $15,000 10.73% 8.26% 11.97%

Average Household Income $80,718 $86,025 $84,373

Median Household Income $60,755 $66,945 $62,681

Per Capita Income $32,355 $33,818 $32,374

POPULATION PROFILE 5 MILES 10 MILES 25 MILES

Population 25+ by Education Level

2016 Estimate Population Age 25+ 19,239 48,769 652,007

Elementary (0-8) 4.30% 2.82% 3.29%

Some High School (9-11) 7.71% 7.41% 7.47%

High School Graduate (12) 31.56% 32.61% 30.26%

Some College (13-15) 18.44% 18.84% 18.08%

Associate Degree Only 10.19% 10.61% 8.89%

Bachelors Degree Only 17.48% 18.33% 18.43%

Graduate Degree 8.89% 8.61% 12.34%

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JERRY SWONFirst Vice President InvestmentsNational Hospitality GroupManhattan OfficeOffice 212.430.5219 Cell [email protected] NY 10401248594 | NJ 0999581

TIM MCCAFFREYAssociateNational Hospitality GroupManhattan OfficeOffice 212.430.5197 Cell [email protected] NY 10401278221

E X C L U S I V E LY L I S T E D B Y

DAYS INN STURBRIDGE

days inn sturbridge - loopnet · room revenue multiplier 3.2 room revenue multiplier- pro forma 3.2...

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