1 / 12

Transactions Value by Segment

Transactions Value by Segment. Presented to: International Society of Hospitality Consultants Annual Conference October 20 – 23, 2005 San Diego, CA. Sales Comparables - 2005. Full Service Marriott Residence Inn by Marriott Hilton Garden Inn Holiday Inn Express (Manhattan).

livia
Download Presentation

Transactions Value by Segment

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. TransactionsValue by Segment Presented to: International Society of Hospitality Consultants Annual Conference October 20 – 23, 2005 San Diego, CA

  2. Sales Comparables - 2005 • Full Service Marriott • Residence Inn by Marriott • Hilton Garden Inn • Holiday Inn Express (Manhattan)

  3. Marriott Hotel (suburban-midwest) • Executive Summary • Opened in 1985, 236 rooms, 18,000 sq. ft. meeting/conference space, restaurant, lounge, fitness facility, abutting public golf course. • Union labor, weak to flat market, stagnant room demand. • Product Improvement Plan = +/- $5,500,000 (mandatory) Financial Data Gross Rev. $10,000,000 Room Rev. $5,900,000 NOI (after mgt./FFE) $1,000,000

  4. Sales Comparables - 2005 • Sale Price $9,000,000 Marriott Hotel (suburban – midwest)

  5. Residence Inn by Marriott (suburban Northeast) • Executive Summary • Opened in 1998, 156 extended stay rooms, 2,000 sq. ft. meeting space. • Airport market, strong OCC. (77%), weak ADR ($73), new supply issues. • Product Improvement Plan = +/- $1,200,000 (mandatory) Financial Data Gross Rev. $3,300,000 Room Rev. $3,200,000 NOI (after mgt./FFE) $1,000,000

  6. Sales Comparables - 2005 • Sale Price $11,500,000 Residence Inn by Marriott(suburban - Northeast)

  7. Hilton Garden Inn (suburban Northeast) • Executive Summary • Opened in 2000, 112 rooms, 2,500 sq. ft. meeting space. • 50% Corporate / 50% leisure market, strong Occ. (72%), strong ADR ($152), very good physical condition, new supply issues. Pricing significantly higher than the “cost to replace”. • Product Improvement Plan = +/- $600,000 (mandatory) Financial Data Gross Rev. $4,400,000 Room Rev. $4,100,000 NOI (after mgt./FFE) $1,650,000

  8. Sales Comparables - 2005 • Sale Price $17,750,000 Hilton Garden Inn (suburban Northeast)

  9. Holiday Inn Express (midtown Manhattan) • Executive Summary • Opened in August 2005, 124 rooms, 400 sq.ft. meeting space. • 65% Corporate / 35% leisure market, strong Occ. (83% proj.), strong ADR ($220 proj.) • 2005 performance for select, limited service product was 84.5% @ $232 ADR • Non Union employees for construction and operations Financial Data – projected for 2006 Occupancy 83% Average Rate $220 Gross Rev. $8,450,000 Room Rev. $8,300,000 NOI (after mgt./FFE) $2,900,000 (35%)

  10. Sales Comparables - 2005 • Sale Price $36,500,000 Holiday Inn Express (midtown Manhattan)

  11. Comparison By Product Type

  12. In Summary • Transaction market remains very strong • Equity abundant in every hotel product segment • Lenders are very aggressive • Doctors and Dentists not yet in the market • Pricing may be at Peak • Single digit Cap Rates in every segment • New supply additions in almost every market. • Concerns over the rise in interest rates, fuel oil and construction costs.

More Related