Offering Memorandum
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OFFERING MEMORANDUM HOLIDAY INN & QUALITY INN - SUBURBAN EXTENDED STAY 314 KEY PORTFOLIO | BATON ROUGE, LA TABLE OF CONTENTS Cole Spain DISCLAIMER & LIMITING CONDITIONS 3 V.P. Hospitality Group [email protected] ASSET OVERVIEW 4 404-876-1640 x132 EXECUTIVE SUMMARY 5 ASSET HIGHLIGHTS 6 ASSET INFORMATION 8 Broker of Record AERIALS 10 PHOTOS 14 Michael Bull Bull Realty, Inc. FINANCIAL OVERVIEW 20 LA License # 0995682801-ACT COMPETITIVE SETS 21 [email protected] 404-876-1640 x101 MARKET OVERVIEW 24 LOCATION OVERVIEW 25 LOCATION MAP 26 50 Glenlake Parkway, Suite 600 DEMAND GENERATORS 27 Atlanta, GA 30328 CONTACT INFORMATION xx BullRealty.com BROKER PROFILE 42 CONFIDENTIALITY AGREEMENT 43 Exclusively offered by Bull Realty, Inc. DISCLAIMER & LIMITING CONDITIONS Bull Realty has been retained as the exclusive broker to arrange the sale of the Subject Properties. This Offering Memorandum contains selected information pertaining to the Properties but does not purport to be all-inclusive or to contain all of the information that a prospective purchaser may require. All financial projections are provided for general reference purposes only and are based upon assumptions relating to the general economy, competition and other factors, which therefore, are subject to material change or variation. Prospective purchasers may not rely upon the financial projections, as they are illustrative only. An opportunity to inspect the Properties will be made available to qualified prospective purchasers. In this Offering Memorandum, certain documents, including financial information, are described in summary form and do not purport to be complete or accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected to review independently all documents. This Offering Memorandum is subject to prior placement, errors, omissions, changes or withdrawal without notice and does not constitute a recommendation, endorsement or advice as to the value of the Properties by Bull Realty Inc. or the current Owner/Seller. Each prospective purchaser is to rely upon its own investigation, evaluation and judgment as to the advisability of purchasing the Properties described herein. Owner/Seller expressly reserve the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Properties and/or to terminate discussions with any party at any time with or without notice. Owner/Seller shall have no legal commitment or obligation to any purchaser reviewing this Offering Memorandum or making an offer to purchase the Properties unless a written agreement for the purchase of the Properties have been fully executed, delivered and approved by the Owner/Seller and any conditions to the purchaser’s obligations therein have been satisfied or waived. The Seller reserves the right to move forward with an acceptable offer prior to the offer deadline. This Offering Memorandum may be used only by parties approved by the Owner. The Properties are privately offered, and by accepting this Offering Memorandum, the party in possession hereof agrees (i) to return it if requested and (ii) that this Offering Memorandum and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this Offering Memorandum may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of Bull Realty, Inc. or Owner/Seller. The terms and conditions set forth above apply to this Offering Memorandum in its entirety and all documents, disks and other information provided in connection therewith. HOLIDAY INN & QUALITY INN - SUBURBAN EXTENDED STAY PORTFOLIO | BATON ROUGE, LA Page 3 of 44 ASSET OVERVIEW HOLIDAY INN & QUALITY INN - SUBURBAN EXTENDED STAY PORTFOLIO | BATON ROUGE, LA Page 4 of 44 EXECUTIVE SUMMARY INTERLINE AVE Bull Realty is pleased to offer on an exclusive basis the fee simple interest in the 140-key Holiday Inn Baton Rouge South and the 174- key dual brand Quality Inn – Suburban Extended Stay Baton Rouge South, (referred to herein as the “Properties” or “Hotels”). The two Hotels can be purchased together or separately. Included in the Quality Inn – Suburban Extended Stay offering is the fee simple interest in a Pizza Hut franchise, located inside the lobby. HOLIDAY INN & QUALITY INN - SUBURBAN EXTENDED STAY PORTFOLIO | BATON ROUGE, LA Page 5 of 44 ASSET HIGHLIGHTS EXCELLENT INTERSTATE LOCATION The Hotels have excellent visibility off of I-12 at the intersection of U.S.-61 in close proximity to the intersection of I-12 and I-10, a major interstate connection. I-12 acts as a bypass around New Orleans that connects I-10 in Baton Rouge back with I-10 in Slidell. The Hotels are 7 miles southeast of the Baton Rouge Central Business District, which includes the Louisiana State Capitol and the vibrant Downtown Baton Rouge along the Mississippi River. Approximately, 6 miles west of the Hotels is Louisiana State University and 9 miles northwest is Southern University and A&M College. Approximately 2 miles from the Hotels are multiple healthcare facilities. DIVERSE DEMAND GENERATORS As the state capital of Louisiana and major college town, Baton Rouge has a diverse mix of demand generators. The Hotels draw on the Louisiana State Capitol; corporate demand in the technology, research, industrial, and petrochemical industries; healthcare; convention/ meeting; leisure; military; higher education; and transient including: Interstate-10, IBM, ExxonMobil, Turner Industries, Performance Contractors, The Newtron Group, BlueCross BlueShield of Louisiana, Baton Rouge General, Our Lady of the Lake Medical Center, Women’s Hospital, Louisiana State University, Southern University, Raising Cane’s River Center, historical sites, casinos, and events year round. HOLIDAY INN & QUALITY INN - SUBURBAN EXTENDED STAY PORTFOLIO | BATON ROUGE, LA Page 6 of 44 ASSET HIGHLIGHTS RECENTLY RENOVATED ASSETS Historically, the Hotels operated as one, 334-key Holiday Inn that included a six- story tower and two-story exterior corridor portion. Today, the structures are separated: the tower is now the 140-key Holiday Inn, and the exterior corridor portion is now the 174-key dual brand Quality Inn – Suburban Extended Stay. The conversion and full renovation was completed in 2018, at a cost of ±$10M. A free-standing structure was constructed to house the new lobby and common area with a new front desk, breakfast area, meeting space, and Pizza Hut within the Quality Inn – Suburban Extended Stay. Current ownership is in the permitting process to complete the final stage of renovation: the installation of kitchenettes in the 62 rooms of the Suburban Extended Stay at ± $2,000/key. OPPORTUNITY TO DIVERSIFY ACROSS MARKET SEGMENTS The Offering presents new ownership with the opportunity to diversify across market segments and four different brands: Holiday Inn, Quality Inn, Suburban Extended Stay, and Pizza Hut. The full-service, upper-midscale Holiday Inn attracts corporate business travelers, leisure, families, meeting, and group business, while the select-service, midscale Quality Inn attracts the transient, relatively price-sensitive, corporate and leisure travelers. The economy Suburban Extended Stay caters to a longer-stay guest and skilled- labor demand. HOLIDAY INN & QUALITY INN - SUBURBAN EXTENDED STAY PORTFOLIO | BATON ROUGE, LA Page 7 of 44 HOLIDAY INN OVERVIEW ADDRESS 9990 Airline Highway, Baton Rouge, LA 70816 VIRTUAL COMMON AREAS TOUR Guest Rooms: 1-BED & 2-BED # KEYS 140 # STORIES 6 OPENED 1968 RENOVATED 2018 Restaurant, bar, indoor & outdoor pool, fitness center, business AMENITIES center, guest laundry facility, sundry shop, and high-speed Internet, one 4,611 SF ballroom and four meeting rooms (8,635 SF total) OWNERSHIP Fee-Simple LABOR Non-Union MANAGEMENT Absentee Owner Operated with Local GM $ DEBT Unencumbered HOLIDAY INN & QUALITY INN - SUBURBAN EXTENDED STAY PORTFOLIO | BATON ROUGE, LA Page 8 of 44 QUALITY INN - SUBURBAN EXTENDED STAY OVERVIEW ADDRESS 9970 Airline Highway, Baton Rouge, LA 70816 VIRTUAL COMMON AREAS TOUR Guest Rooms: 1-BED & 2-BED # KEYS 174 (112 Quality Inn / 62 Suburban Extended Stay) # STORIES 2 OPENED Opened 1968 / Renovated 2018 Free premium Wi-Fi, full breakfast, outdoor pool, truck and AMENITIES bus parking, fitness center, business center, FEMA-approved for government employees, guest laundry, one 600 SF meeting room, Pizza Hut OWNERSHIP Fee-Simple LABOR Non-Union MANAGEMENT Absentee Owner Operated with Local GM $ DEBT Unencumbered HOLIDAY INN & QUALITY INN - SUBURBAN EXTENDED STAY PORTFOLIO | BATON ROUGE, LA Page 9 of 44 AERIALS HOLIDAY INN & QUALITY INN - SUBURBAN EXTENDED STAY PORTFOLIO | BATON ROUGE, LA Page 10 of 44 DOWNTOWN BATON ROUGE HOLIDAY INN & QUALITY INN - SUBURBAN EXTENDED STAY PORTFOLIO | BATON ROUGE, LA Page 11 of 44 HOLIDAY INN & QUALITY INN - SUBURBAN EXTENDED STAY PORTFOLIO | BATON ROUGE, LA Page 12 of 44 HOLIDAY INN & QUALITY INN - SUBURBAN EXTENDED STAY PORTFOLIO | BATON ROUGE, LA Page 13 of 44 HOLIDAY INN PHOTOS HOLIDAY INN & QUALITY INN - SUBURBAN EXTENDED STAY PORTFOLIO | BATON ROUGE, LA Page 14 of 44 HOLIDAY INN & QUALITY INN - SUBURBAN EXTENDED STAY PORTFOLIO | BATON ROUGE, LA Page 15 of 44 HOLIDAY INN & QUALITY INN - SUBURBAN EXTENDED STAY PORTFOLIO | BATON ROUGE, LA Page 16 of 44 HOLIDAY INN & QUALITY INN - SUBURBAN EXTENDED STAY PORTFOLIO | BATON ROUGE, LA Page 17 of 44 QUALITY INN PHOTOS HOLIDAY INN & QUALITY INN - SUBURBAN EXTENDED STAY PORTFOLIO | BATON ROUGE,