Investment Overview

As the exclusive representative of the seller, Marcus & Millichap’s National Hospitality Division is pleased to present for sale to qualified investors the 138-room Two Property Marriott Portfolio (‘Hotels’, ‘Properties’ or ‘Portfolio’) including the Fairfield Inn & Suites Champaign and the Courtyard Champaign. Both Properties in this Portfolio have performed well and have produced strong revenues in recent years. Combined, these high-quality Properties have achieved an average room revenue upward of $1.4 million each year since 2019. The portfolio is ideally positioned in the market with all properties recording over 100 percent market penetration. Each Hotel’s property improvement plan would allow the property to increase ADR due to the high drive market. Positioned off Interstate 74 near Interstate 57, the portfolio is located strategically by many of the city’s businesses and attractions in Champaign, Illinois. Located in the hear of East Central Illinois, Champaign is intersected by Interstates 57, 72, and 74, putting Champaign County approximately two hours south of Chicago, Illinois; three hours northeast of St. Louis, Missouri; and two hours west of Indianapolis, Indiana. Home to the University of Illinois – Urbana-Champaign (UIUC), Parkland College, and 2 major regional hospitals (Carle Foundation Hospital and OSF Heart of Mary Medical Center), Champaign County is a leader in education, health care, government, high technology, and light industry. Parkland College provides an additional 18,000 students for the city during the year. Beyond the significance of the education industry to Champaign, agriculture comprises a significant portion of the local economy with a vast majority of Champaign County involved in agriculture. The city also benefits from the various Fortune 500 companies that have offices in the city, with some of the most notable being Abbott, Archer Daniels Midland, Caterpillar, John Deere, Dow Chemical Company, IBM, and State Farm. The fourth-largest employer in the city, Kraft Heinz maintains one of the largest pasta factories in North America less than 2 miles from the Hotels. Another layer to the diverse array of industries that support the local economy, five record labels are based in Champaign, including Polyvinyl Records (3.0 miles), Undertow Music Collective (3.8 miles), Parasol Records (4.1), Exile on Main Street (2.0 miles), and Nicodemus Booking Agency (2.0 miles). The aptly named Research Park, backed by UIUC, is home to many large technology and software companies including Riverbed Technology, Citrix Systems, Abbott Laboratories, Dow Innovation Center, and Yahoo! Inc. Additional tech companies in the area include AMD, Intel, IBM, Amdocs, Infobright, and Instarecon. Among these, the largest high technology employer is Wolfram Research, with more than 400 employees in Champaign. As more business travel picks up post-Covid, sports complex revenues in Champaign continue to increase as it also plays host to University of Illinois sporting events, and high school football, and wrestling state tournaments. Though not a chief economic contributor to the city, the United States Army Corps of Engineers maintains the Construction Engineering Research Laboratory (CERL) in Champaign. Additionally, the Champaign Park District hosts a variety of festivals, holiday celebrations and family-friendly events each year. Excellent local parks, youth sports programs and miles of walking and biking opportunities make Champaign a great place for families and individuals to have fun and stay healthy. Area lakes and rivers for boating, fishing, canoeing, camping and nature park areas for hiking all add to the community’s amenable cityscape. Lastly, shopping, dining, and entertaining venues are scattered throughout the city as Champaign boasts both an urban-downtown, campus town, a regional mall, and many neighborhood destinations. Marriott’s International Brand Affiliation provides the world’s largest travel loyalty program, Marriott Bonvoy. Marriott’s global platform has over 160 million users and helps drive top-line revenue and bottom-line cost savings. All Properties are encumbered by a Land Lease Agreement, Assets could be acquired as a portfolio or individually.