Best Western of Lake George 2452 State Route 9N, Lake George, New York 12845

BEST WESTERN OF LAKE GEORGE 2452 STATE ROUTE 9N, LAKE GEORGE, NEW YORK 12845

OFFERING MEMORANDUM

EXCLUSIVELY LISTED BY: NON-ENDORSEMENT & DISCLAIMER NOTICE

CONFIDENTIALITY & DISCLAIMER The 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 investigation, 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.

NON-ENDORSEMENT NOTICE Marcus & 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 indicate 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 prospective customers.

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

WWW.MARCUSMILLICHAP.COM JERRY SWON First Vice President Investments National Hospitality Group Manhattan Office Direct: 212-430-5219 Mobile: 908-625-6934 [email protected]

BEST WESTERN CAMERON PIERCE Associate OF LAKE GEORGE National Hospitality Group Manhattan Office Direct: 646-805-1437 Mobile: 631-681-8779 [email protected]

EXCLUSIVELY LISTED BY

Swon & Partners DANIEL ZAGORIA Senior Associate National Hospitality Group Manhattan Office Direct: 212-430-5211 OFFICES NATIONWIDE AND THROUGHOUT CANADA Mobile: 404-401-6006 [email protected] WWW.MARCUSMILLICHAP.COM

TABLE OF CONTENTS

01 EXECUTIVE SUMMARY Offering Summary • Vital Data • Annualized Operating Data • Executive Summary • Investment Overview • Summary Of Terms 09 PROPERTY DESCRIPTION Features / Amenities • Local / Regional Map • Area Attractions 15 FINANCIAL OVERVIEW Market Trend • RevPAR Comparison • Profit & Loss Summary • Five-Year Cash Flow Pro Forma • Five-Year IRR 24 COMPETITVE PROPERTY SET Competitive Properties Map • Competitve Properties

27 MARKET OVERVIEW Demographic Summary • Market Overview

EXCLUSIVELY LISTED BY 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 ZAA0330376 EXECUTIVE SUMMARY

BEST WESTERN OF LAKE GEORGE BEST WESTERN OF LAKE GEORGE // EXECUTIVE SUMMARY BEST WESTERN OF LAKE GEORGE //

G 2 87 4.1 4.1 7.7% 9.0% 40.0% $48.17 $71,264 $120.27 3.17 Acres Fee Simple Fee $6,200,000 1962 / 1985 $1,550,000 / 25% Room Revenue Multiplier 2 Pro Forma Year Room Revenue Multiplier- Price/Room VITAL DATA VITAL Cap Rate 2 Pro Forma Year Cap Rate - Number of Stories of Ownership Type Lot Size Occupancy ADR RevPAR Built Year OFFERING SUMMARY Purchase Price Down Payment of Rooms Number Total 2452 STATE ROUTE 9N ROUTE STATE 2452 12845 NEW YORK LAKE GEORGE,

BEST WESTERN OF LAKE GEORGE // EXECUTIVE SUMMARY 1 CLICK HERE FOR DRONE FOOTAGE OF HOTEL

ANNUALIZED OPERATING DATA

T12 OCT YEAR INCOME % OF GR % OF GR 2018 TWO Room Revenue $1,529,572 100.0% $1,575,765 100.0% Gross Revenue $1,529,572 100.0% $1,575,765 100.0% Total Expenses $1,054,668 69.0% $1,089,365 69.1%

Net Operating Income $474,904 31.0% $486,400 30.9% EXECUTIVE SUMMARY BEST WESTERN OF LAKE GEORGE //

I 2 - Guest rooms feature a desk, a desk, Guest rooms feature

TERMS OF SALE at $6,200,000 based on a of Lake George is offered The Best Western and capitalization rate of 7.7 percent. Historic operating documentation third party reports may be found in the online document data portal. INVESTMENT SUMMARY a of Lake George represents the opportunity to acquire The Best Western a stable market. Our Pro Forma analysis well-maintained hotel located in operating efficiencies through cost assumes an investor will increase growth. management and modest revenue Rewards® also earned top honors from U.S. News & World Report and set set Report and from U.S. News & World Rewards® also earned top honors Certificate of earning the TripAdvisor new records for the number of hotels Excellence award. countries and territories worldwide. Best Western International Inc., is International Inc., is Best Western countries and territories worldwide. awards recently including Business celebrating winning several prestigious Plus the number one business hotel News naming Best Western Travel gold awards, and sev four Dynatrace Best of the Web two years in a row, Best Western awards. of the Year en consecutive AAA/CAA Hotel Partner television, microwave, refrigerator, iron and ironing board, hair dryer, coffee coffee iron and ironing board, hair dryer, refrigerator, television, microwave, some fireplaced suites. daily housekeeking. Hotel features and maker, FRANCHISE International Inc., hosts more than 4,100 hotels in over 100 Best Western Marcus & Millichap has been chosen to exclusively market for sale the Best Best for sale the exclusively market been chosen to & Millichap has Marcus situated in upstate a two-story 87-room hotel ideally of Lake George, Western Mountains. Amenities include: with easy access to the Adirondack New York complimentary center, outdoor pool, hot tub, business both an indoor and full hot breakfast. WiFi, and complimentary INVESTMENT OVERVIEWINVESTMENT

BEST WESTERN OF LAKE GEORGE // EXECUTIVE SUMMARY 3 INVESTMENT HIGHLIGHTS

►► Located off Interstate 87 on Exit 21

►► Owner Living Space Potential

►► Approximately 34 Miles from Saratoga County Airport and 53 Miles from Albany International Airport

►► Proximity to Area Attractions - Lake George, SUNY Adirondack, Fort William Henry Museum, Six Flags Great Escape & Lodge, West Mountain Ski Center, Skidmore College, Saratoga National Racing Museum, Cool Insuring Arena, West Mountain Ski Center

INTEREST OFFERED Fee simple interest in the Best Western of Lake George, a 87-room hotel located at 2452 State Route 9N, Lake George, New York 12845.

PROPERTY TOURS Prospective 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 EXECUTIVE SUMMARY BEST WESTERN OF LAKE GEORGE // Loan Amount $4,650,000 Loan Type Proposed New Interest Rate 5.60% Amortization 25 Years

Loan information is time sensitive and subject to change. Contact your local Marcus & Millichap Capital Corporation representative. I 4 BEST WESTERN OF LAKE GEORGE

AERIALS BEST WESTERN OF LAKE GEORGE BEST WESTERN OF LAKE GEORGE

AERIALS 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 ZAA0330376 PROPERTY DESCRIPTION

BEST WESTERN OF LAKE GEORGE BEST WESTERN OF LAKE GEORGE // PROPERTY DESCRIPTION PROPERTY BEST WESTERN OF LAKE GEORGE //

8 AND AND Complimentary Coffee/Tea Business Center Machines Ice/Vending Seasonal Stop for Local Trolley Indoor Pool Hot Tub Laundry Facility Complimentary Parking Complimentary Full Hot Breakfast Outdoor Pool Complimentary WiFi ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► COMMON AREA FEATURES COMMON AREA AMENITIES FEATURES FEATURES

BEST WESTERNBEST REGENCYWESTERN OF HOUSELAKE GEORGE HOTEL // PROPERTY // PROPERTY DESCRIPTION DESCRIPTIION 9 GUEST ROOM AMENITIES

►► Complimentary WiFi ►► Desk

►► Television ►► Telephone BEST WESTERN OF LAKE GEORGE // PROPERTY DESCRIPTION PROPERTY BEST WESTERN OF LAKE GEORGE //

►► Premium Cable Channels ►► Microwave

►► Coffee / Tea Maker ►► Refrigerator

►► Iron / Ironing Board ►► Fireplace - Select Rooms

►► Hair Dryer ►► Kitchenette - Select Rooms

10 REGIONAL MAP LOCAL MAP MAPPING

BEST WESTERNBEST REGENCYWESTERN OF HOUSELAKE GEORGE HOTEL // PROPERTY // PROPERTY DESCRIPTION DESCRIPTIION 11 AREA ATTRACTIONS DISTANCE AREA ATTRACTIONS Lake George Plaza Outlet Center 1.2 Miles Fort William Henry Museum 1.2 Miles MAJOR EMPLOYERS IN MARKET Lake George 1.2 Miles COMPANY LOCAL EMPLOYEES Lake George Steamboat Company 1.6 Miles Glens Falls Hospital 2,398 Adirondack Outlet Mall 2.7 Miles Great Escape Amusement Park 1,900 Outlets at Lake George 3.1 Miles Keena Staffing Services 1,800 Six Flags Great Escape & Splashwater Kingdom 3.8 Miles Saratoga Hospital 1,508 SUNY Adirondack 7.0 Miles Walmart 1,009 West Mountain Ski Center 8.0 Miles Saratoga Hospital & Nursing HM 1,000 Hudson Falls Historic District 9.6 Miles Glens Falls Manufacturing 960 Glens Falls Hospital 10.4 Miles Quad/Graphics Inc. 725 Cool Insuring Arena 10.5 Miles GE 718 Skidmore College 21.6 Miles Skidmore College 714 Saratoga National Racing Museum / Track 22.9 Miles

Fort William Henry Museum Lake George SUNY Adirondack BEST WESTERN OF LAKE GEORGE // PROPERTY DESCRIPTION PROPERTY BEST WESTERN OF LAKE GEORGE //

12 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 ZAA0330376 FINANCIAL ANALYSIS

BEST WESTERN OF LAKE GEORGE BEST WESTERN OF LAKE GEORGE // FINANCIAL ANALYSIS BEST WESTERN OF LAKE GEORGE //

14 MARKET TREND BEST WESTERN OF LAKE GEORGE // FINANCIAL ANALYSIS

15 REVPAR COMPARISON BEST WESTERN OF LAKE GEORGE // FINANCIAL ANALYSIS BEST WESTERN OF LAKE GEORGE //

16 PROFIT AND LOSS SUMMARY BEST WESTERN OF LAKE GEORGE // FINANCIAL ANALYSIS

17 5-YEAR CASH FLOW PRO FORMA BEST WESTERN OF LAKE GEORGE // FINANCIAL ANALYSIS BEST WESTERN OF LAKE GEORGE //

18 5-YEAR IRR BEST WESTERN OF LAKE GEORGE // FINANCIAL ANALYSIS

19 20 BEST WESTERN OF LAKE GEORGE // FINANCIAL ANALYSIS 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 ZAA0330376 COMPETITIVEEXECUTIVE PROPERTYSUMMARY SET

BEST WESTERN OF LAKE GEORGE BEST WESTERN OF LAKE GEORGE // EXECUTIVE SUMMARY BEST WESTERN OF LAKE GEORGE // BEST WESTERN OF LAKE GEORGE // COMPETITIVE PROPERTY SET COMPETITIVE PROPERTY BEST WESTERN OF LAKE GEORGE //

COMPETITIVE PROPERTY SET

4 1 1 4 6 3

Hotel City, State Zip Rooms Open 2 5 Best Western of Lake George Lake George, NY 12845 87 1962 Baymont Inn & Suites Queensbury Lake 1 Queensbury, NY 12804 103 1972 George

Clarion Inn & Suites @ The Outlets of EXECUTIVE SUMMARY BEST WESTERN OF LAKE GEORGE //

2 Lake George, NY 12845 86 1970 SET COMPETITIVE PROPERTY BEST WESTERN OF LAKE GEORGE // Lake George

3 Super 8 Queensbury Glens Falls Area Queensbury, NY 12804 59 1987 3 6 4 Sleep Inn & Suites Queensbury Queensbury, NY 12804 78 2000

5 Wingate by Wyndham Lake George Lake George, NY 12845 96 2007 Holiday Inn Express & Suites 6 Queensbury, NY 12804 90 2017 Queensbury Lake George I 24 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 ZAA0330376 MARKET OVERVIEW

BEST WESTERN OF LAKE GEORGE BEST WESTERN OF LAKE GEORGE // MARKET OVERVIEW BEST WESTERN OF LAKE GEORGE //

26 HOUSING STATISTIC $172,084 POPULATION STATISTIC POPULATION 107,890 INCOME STATISTIC $55,520 EMPLOYMENT BY INDUSTRIES EMPLOYMENT DEMOGRAPHICS HIGHLIGHTS DEMOGRAPHICS

BEST BESTWESTERNBEST WESTERNWESTERN OF LAKE OFOF LAKEGEORGELAKE GEORGEGEORGE // COMPETITIVE //// EXECUTIVE MARKET PROPERTY OVERVIEW SUMMARY SET 272727 POPULATION 15 MILES 20 MILES 25 MILES HOUSEHOLDS BY INCOME 15 MILES 20 MILES 25 MILES

2022 Projection 111,348 151,235 215,261 2017 Estimate Total Population $200,000 or More 2.89% 3.26% 4.29% 2017 Estimate 107,890 145,178 207,669 Total Population $150,000 - $199,000 4.22% 4.68% 5.38% 2010 Census 106,377 142,998 204,458 Total Population $100,000 - $149,000 13.58% 15.17% 15.33% 2000 Census $75,000 - $99,999 13.64% 13.89% 13.92% 99,447 132,957 192,690 Total Population $50,000 - $74,999 20.36% 20.11% 19.08%

Daytime Populations W 106,333 133,233 207,937 Total Population $35,000 - $49,999 14.68% 14.01% 13.52%

$25,000 - $34,999 10.22% 9.40% 9.23% HOUSEHOLDS 15 MILES 20 MILES 25 MILES $15,000 - $24,999 10.05% 9.62% 9.62% 2022 Projection 45,451 60,858 87,572 Total Households Under - $15,000 10.37% 9.85% 9.63% 2017 Estimate 43,593 57,848 83,691 Average Household Income $72,142 $75,923 $80,800 Total Households Median Household Income $55,520 $58,419 $59,964 Average (Mean) Household Size 2.40 2.44 2.40 Per Capita Income $29,531 $30,610 $32,970 2010 Census 42,920 56,871 82,095 Total Households 2000 Census POPULATION PROFILE 15 MILES 20 MILES 25 MILES 38,967 50,889 74,459 Total Households Population 25+ by Education Level HOUSING UNITS 15 MILES 20 MILES 25 MILES 2017 Estimate Population Age 25+ 78,473 104,667 149,323 Occupied Units Elementary (0-8) 2.25% 2.25% 2.19% 2022 Projection 45,451 60,858 87,572 Some High School (9-11) 7.18% 7.00% 6.63% 2017 Estimate 53,510 72,008 105,674 High School Graduate (12) 36.77% 36.12% 33.44%

Some College (13-15) 19.07% 18.72% 18.03%

Associate Degree Only 10.97% 10.65% 10.23%

Bachelors Degree Only 13.30% 13.93% 16.13% MARKET OVERVIE BEST WESTERN OF LAKE GEORGE // BEST WESTERN OF LAKE GEORGE // EXECUTIVE SUMMARY BEST WESTERN OF LAKE GEORGE //

Graduate Degree 9.60% 10.47% 12.48% SET COMPETITIVE PROPERTY BEST WESTERN OF LAKE GEORGE //

I 28 BEST WESTERN OF LAKE GEORGE 2452 STATE ROUTE 9N, LAKE GEORGE, NEW YORK 12845

EXCLUSIVELY LISTED BY