NEW OFFERING in Memphis, TN: 142 Room Welcome Inn
Total Page：16
File Type：pdf, Size：1020Kb
HOTEL FOR SALE: INVESTMENT OFFERING MEMORANDUM NEW OFFERING in Memphis, TN: 142 Room Welcome Inn Broker on Record: Rena Frulla: 901-326-2966; [email protected] Berkshire Hathaway HomeServices Taliesyn Realty Commercial Division has been retained as the exclusive agent to the Owner and is pleased to offer for sale the fee-simple, 142-room, exterior-corridor Welcome Inn located in Memphis, TN (the "Hotel" or "Property"). The two-story Property was built in 1966 and underwent a full renovation in 2008. The Owner has continued to make capital improvements to the Property from 2017 throughout 2019. LOCATION: Intersection of I-40 and I-240 at the Summer Ave. exit PARCEL: 3.54 acres FACILITIES: 142 Rooms o 80 currently in use – all with new locks o 40 with new furnishings and new a/c window units o 62 rooms unused and available 5,500 SF Meeting Space / potential Restaurant Available OPENED: 1966; fully renovated 2008; partial renovation 2017-2019 INVESTMENT OFFERING MEMORANDUM Exclusively Berkshire Hathaway HomeServices Taliesyn Realty is a network brand of HSF Affiliates LLC, which is owned by Offered by: HomeServices of America, Inc.TM, a Berkshire Hathaway affiliate WELCOME INN HOTEL PROPERTY DESCRIPTION MEMPHIS, TN Page 2 Free cable, phone and Wi-Fi Flat screen TVs in all rooms; microwaves and refrigerators available 24-hour front desk management Laundry facilities available 3 Vending machines Free parking; 163 parking spaces 5 buildings; 2 stories exterior-corridor Pet-friendly The Hotel sits on a 3.54-acre lot that is easily and directly accessible from the Summer Avenue exit at the I-40 and I-240 junction which is one of the most heavily trafficked thoroughfares in the greater Memphis Metropolitan area. The I-40 / I-240 intersection has undergone a major expansion and upgrade over the last three years. New management could infuse new life, establish updated regimes to escalate the service level to assure guests receive consistent and reliable service, attract new customers and build up customer loyalty. Roughly 25-30% of guests are extended stay customers with some staying 3-6 months at a time. The remaining guests are transient customers. Currently the Owner does no direct marketing and only advertises on booking.com. 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 WELCOME INN HOTEL PROPERTY DESCRIPTION MEMPHIS, TN Page 3 REASON FOR SELLING The property was acquired nine years ago by its current Owner/Operator. Upon the passing of her life and business partner four years ago, Ownership has elected to join the rest of her family outside of TN. PROPERTY HIGHLIGHTS Recent Renovation: 40 of the 80 rooms currently in use have been renovated with all new furniture and new a/c window units. The property has a brand-new metal roof and all new locks. Highly Visible Location: Located at the intersection of one of the most heavily traveled thoroughfares in Memphis. There is a pole sign for visibility from the highways ready to be used. Easy Access: Directly across the street from two major highways, I-40 and I-240, which were newly reconstructed to accommodate high volume traffic Unencumbered by Management or Brand Affiliation: Gives new owner the opportunity to revamp the operational strategy of the Hotel, have maximum control over day-to-day operations and implement strategic cost control initiatives to ensure greater NOI flow through. Fee Simple Asset: The Hotel is being offered Fee-Simple. No PIP: Independently owned and operated; Sold as Is. Convenient to Demand Generators: Numerous major attractions, restaurants, schools and businesses located within a 3-mile radius. Convenient to Support Services: Retail, convenience stores, gas stations in walking distance. Significant Upside Potential for new Owner/Operator with improved operations and conversion of dormant rooms to Extended Stay suites. Converting the 62 presently unused guest rooms to 31 new two room suites could be expected to generate $39/ night at a 70% occupancy, which brings $300,000 +/- in incremental revenues and roughly $200,000 +/- in incremental income to the bottom line. Value-Add Scenarios: Operate the hotel at full capacity. Currently the Owner only maintains 80 guest-ready rooms out of the total of 142 rooms. Transforming the remaining 62 rooms into 31 suites with living areas and kitchenettes would add a substantial amount to the bottom line. Incoming revenues would more than double the initial capital expenditures needed to convert the rooms into fully operational suites. 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 WELCOME INN HOTEL PROPERTY DESCRIPTION MEMPHIS, TN Page 4 There is a fully furnished, completely renovated and move-in ready living area above the lobby that includes hard wood floors, three bedrooms, laundry room with new washer and dryer, full kitchen, living room with flat screen tv and multiple closets. There are two other living quarters that have been developed as fully functioning suites / small apartments by combining guest rooms and making modest renovations. There is a back of the house laundry area with two washers, one commercial, and one commercial dryer with storage space filled with inventory that the new Owner will acquire as part of the sold “as-is.” All guest rooms are in three buildings surrounding a middle courtyard. The courtyard has a pool that was once functioning but has not been used since before the current Ownership took over the Property. Today there is a fence surrounding it. One of the five buildings on the property is a 5,500 sq. ft. lease-ready potential restaurant with space for a fully functioning kitchen and dining or meeting room capacity for approximately 125 guests. The spacious lobby has enough room to serve either continental or hot breakfast. A few nearby major attractions include Memphis’ one and only remaining Drive-In Movie Theatre reminiscent of the 1950s, Putt-Putt Golf & Games providing all day entertainment for the whole family and Autobahn Indoor Speedway Event (Go-Cart Track). Shopping, government offices, corporations, restaurants and numerous other demand generators and support services are proximate. The list is not all-inclusive but gives an idea of the wide range of surrounding places and activities that may attract and appeal to guests of the Hotel. 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 WELCOME INN HOTEL PROPERTY DESCRIPTION MEMPHIS, TN Page 5 Property Information and Overview Sale Type Investment Property Type Hospitality Property Sub-type Motel Building Class Commercial Lot Size 3.542 AC Parcel ID/APN 068001 00023 Dimensions (BAL to ST) 150,369 SF Frontage 320 sf Building Square Footage 69,843 SF Current Owners Purchase Date 3/10/2010 No. Rooms 142 No. Stories 2 Year Built/Renovated 1966/2008/2017-19 Tenancy Single Surface Parking Spaces 163 Parking Ratio 2.33/1,000 SF or 1.15/room Zoning Description CMU-3 Age 44 yrs old Neighborhood Number 00707B72 Parking Surface/Pavement Asphalt, Concrete Typical Floor Sze 34,922 SF Building FAR 0.45 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 WELCOME INN HOTEL PROPERTY DESCRIPTION MEMPHIS, TN Page 6 TRAFFIC COUNTS Nearby Demand Generators and Support Services in Vicinity of Hotel 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 WELCOME INN HOTEL PROPERTY DESCRIPTION MEMPHIS, TN Page 7 DEMAND GENERATORS AND SUPPORT SERVICES IN SURROUNDING VICINITY OF HOTEL Nearby Businesses Category Distance Waffle House Breakfast 20 ft MARATHON Gas station 300 ft Restaurant Depot Restaurant supply store 0.1m MAPCO Gas station 0.2m Driver Services & Reinstatement Ctr Dept of Motor vehicles 0.2m U-Haul Moving & Storage Truck rental agency 0.2m Firestone Complete Auto Care Tire shop 0.3m Floor & Décor Flooring store 0.3m Ryu Sushi Bar Japanese 0.3m Exxon Gas station 0.3m Immigrant's Services & Photo Visa & passport office 0.4m Royal Furniture – Summer Furniture store 0.4m Memphis Auto Inspection Bureau City government office 0.5m Perimeter Shopping Center Shopping mall 0.5m Bargain Hunt Discount store 0.5m Malco Summer Drive-In Drive-in movie theater 0.5m Pancho's Restaurant Mexican 0.5m Highpocket’s Pool Hall 0.6m Midsouth Hobbies & Games Hobby store 0.7m Palace Cinema Movie Theater Movie theater 0.7m Family Funeral Care Funeral home 0.8m Federal Correctional Institute Prison 0.9m Freed-Hardeman University University 0.9m Golf and Games Family Park Amusement park 0.9m Extra Space Storage Self-storage facility 1.0m Catholic Diocese of Memphis Religious organization 1.3m Lowe's Home Improvement Home improvement store 1.8m Cracker Barrel Old Country Store American Eatery/Gen Store 1.9m Harbor Freight Tools Hardware store 2.0m Jumping World Amusement center 2.1m ThyssenKrupp Elevator Memphis Elevator service 2.1m Tops Bar-B-Q Barbecue 2.4m Mark H.