La Quinta by Wyndham St. George 91 E 2680 S, St
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La Quinta by Wyndham St. George 91 E 2680 S, St. George UT 84790 O F F E R I N G M E M O R A N D U M La Quinta by Wyndham St. George CONTENTS 01 Executive Summary Investment Summary Executive Summary Competitive Map Attractions Map Parcel Map 02 Property Description Property Features 14 Floor Plan 15 Property Images 16 03 Demographics Demographics 23 Demographic Charts 25 Exclusively Marketed by: Trenton Bright Paul Pursell Cole Waterfall Daniel Davis Associate Broker Director Sales Agent Sales Agent Lic: 7961776-AB00 Lic: 9894235-AB00 Lic: 7839895-SA00 Lic: 11123399-SA00 (435) 820-6801 (631) 245-4044 (385) 347-2457 (435) 650-4294 [email protected] [email protected] [email protected] [email protected] We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. La Quinta by Wyndham St. George Confidentiality and Disclaimer | 03 Confidentiality & Disclaimer All materials and information received or derived from KW South Valley Keller Williams its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters. Neither KW South Valley Keller Williams its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. KW South Valley Keller Williams will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third-party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW South Valley Keller Williams makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW South Valley Keller Williams does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by KW South Valley Keller Williams in compliance with all Copyright © 2019 CREOP, LLC. All Rights Reserved. applicable fair housing and equal opportunity laws. La Quinta by Wyndham St. George | Executive Summary 01 Executive Summary Investment Summary Executive Summary Competitive Map LA QUINTA BY WYNDHAM ST. GEORGE Attractions Map Parcel Map ................................................ La Quinta By Wyndham St. George Investment Summary | 05 OFFERING SUMMARY ADDRESS 91 E. 2680 S. St. George, UT COUNTY Washington APEX Commercial Real Estate | KW South Valley Keller Williams is pleased to BUILDING SF 67,583 SF present the sale of the La Quinta Inn and Suites St. George, which is part of TOTAL ROOMS 104 Wyndham's Franchise. The Property, originally opened in 2007 on the south end of the city of St. George. The magnificent facade of St. George continues LAND SF 166,834 SF to impress guests as they first glance at the marvelous landscape and YEAR BUILT 2007 beautiful red rocks. APN SG-3DCC-13-A OWNERSHIP TYPE Fee Simple OCCUPANCY VALUE ADD The La Quinta performs exceptionally well, however there is some value add FINANCIAL SUMMARY opportunity because the current owners do not target their occupancy percentage when on average it is around 70%. Lowering the ADR could potentially capture OFFERING PRICE $11,500,00 10%-12% more occupancy and drive the gross room revenue up. PRICE PER KEY $110,577 VERY STRONG CURRENT REVENUE AND CASH FLOW PLUS FUTURE UPSIDE PRICE PSF $169.90 POTENTIAL The La Quinta performs exceptionally well, with effective cost controls in place by DEMOGRAPHICS 1 MILE MILE MILE current ownership. In 2019, the hotel achieved over $2.6 million in total revenues, 5 10 driving 10%-20% of this revenue to the bottom line, after the deduction of 2019 Population 2,956 87,465 135,887 management fees and reserves. 2019 Median HH Income $66,307 56,237 $57,322 GENERAL MANAGER RETENTION 2019 Average HH Income $91,315 $77,245 $78,527 The hotel is ideally offered unencumbered by management, however speaking with the general manager, he is willing to stay aboard and continue to run the hotel, thus providing a buyer with full optionality, including new management or retaining current management and several possible brand conversion opportunities to increase revenue and reservation delivery. COST OF PROPERTY IMPROVEMENT PLAN The La Quinta can be acquired below replacement cost, however transfer PIP running anywhere between $700k-$800k can make a difference, that is why we have spoken with lenders and they feel very confident that they can finance the PIP as well. HIGH VISIBILITY FREEWAY LOCATION The La Quinta boasts an excellent “Freeway” location, close to the many restaurants, shops and outdoor activities. Located directly north off of Exit 4 in St. George. La Quinta By Wyndham St. George Executive Summary | 06 La Quinta By Wyndham Opened in 2007 as a mid level hotel, this property performs exceptionally well, with 2019 room revenue reaching $2.6 million and a consistent $100+ ADR, in one of the hottest markets in the state. The three-story, interior corridor hotel is in very great condition, with continual preventive maintenance and upgrades by ownership. The interior was renovated in 2018 with new flooring, vanities, and case goods. However Wyndham is requiring a $700k -$800k Transfer PIP. The property features an outdoor pool and hot tub, guest laundry facility, and breakfast area. In addition, the La Quinta offers complimentary breakfast and Wi-Fi, and ample surface level parking on a large 2.99-acre lot. The hotel boasts an excellent, high visibility from Interstate- 15 and is close to restaurants, shops, and scenic hot spots. St. George is the closest major city to the entrances of 3 of the "Mighty 5" National Parks – Zions National Park home of the famed Zion Canyon, Bryce Canyon National Park home of the fames Bryce Canyon and Capital Reef National Park. Combined visitation at all three national parks is up 78% over the past decade and up 48% from 2014 through 2017 alone. Together, the parks welcomed more than 7.6 million visitors in 2019. St. George, Utah St. George is a city in and the county seat of Washington County, Utah, United States. Located in the southwestern part of the state on the Arizona border, near the tri-state junction of Utah, Arizona and Nevada, it is the principal city of the St. George Metropolitan Statistical Area. The city lies in the northeastern most part of the Mojave Desert, adjacent to the Pine Valley Mountains and near the convergence of three distinct geological areas: the Mojave Desert, Colorado Plateau, and Great Basin. The city is 118 miles northeast of Las Vegas and 300 miles south-southwest of Salt Lake City on Interstate 15. The St. George area is well known for its natural environment and proximity to several state and national parks. Washington County contains some of the world’s most spectacular scenery- within its boundaries lie Red Cliffs National Conservation Area , Sand Hollow State Park, Quail Creek State Park, Bloomington Country Club, The Outlets at Zion, Bloomington Cave, and Red Hills Desert Garden. St. George is central to some of the most dramatic natural beauty in the American West, from the Mojave Desert to Zion National Park and the Pine Valley Mountains. While its summers are hot, St. George's mild and largely snow-free winters make it popular with golfers, hikers and bikers. In fact, Brigham Young wintered here. St. George’s proximity to several national and state parks has made it a popular destination in southwestern Utah.