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 Comfort Suites Auburn Hills (‘Hotel’ or ‘Property’) located in Auburn Hills, Michigan. The Choice Hotels-branded Hotel is offered at "call for offers" basis. Please reach out to the listing agent for more information. The Comfort Suites Auburn Hills is a 63-room, three-story Hotel stationed at 1565 N Opdyke Rd in Auburn Hills, Michigan, just off Interstate 75. Various common area amenities at the Property include an indoor pool with hot tub, fitness center, business center, breakfast area, and a laundry facility. Auburn Hills is a city located in Oakland County, Michigan, in the northern region of metropolitan Detroit. It is a vibrant suburban community that is home to approximately 24,000 residents. One of the most notable features of Auburn Hills is its location as a hub for business, education, and entertainment. The city is home to several major corporations, including Fiat Chrysler Automobiles, Continental Automotive Systems, and BorgWarner. The Oakland University, a public research university, is also located in Auburn Hills, providing excellent educational opportunities for the residents. Auburn Hills is also a popular destination for entertainment and sports enthusiasts, with numerous sports complexes and parks peppered throughout the region. The Palace of Auburn Hills, which was once home to the Detroit Pistons, is now a popular venue for concerts and events. Additionally, the city hosts the Great Lakes Crossing Outlets, which is the largest outlet mall in Michigan that attracts visitors from all over the region. The city also boasts several parks and recreational facilities, including the River Woods Park, the Civic Center Park, and the Auburn Hills Community Center. These facilities provide residents with access to various amenities such as walking trails, sports fields, and picnic areas. In January, the Auburn Hills/Madison Heights hotel submarket experienced a robust 17.7% annual growth rate in the twelve-month average RevPAR, which is in line with the overall market trend. The Detroit RevPAR also exhibited a stronger increase during the same period. With the delivery of multiple projects comprising a total of 610 rooms in the past three years, there are approximately 340 rooms currently being constructed across various projects, indicating a sustained development trend in the submarket. In 2022, the limited-service Hotel recorded room revenues of over $1 million and a net operating income over $348 thousand, or 31.1 percent of gross revenues, after a 4 percent capital replacement reserve. A prospective buyer should be able to capitalize on the anticipated increase in RevPAR from better revenue management, not only benefiting from increased market share but also higher NOI flow-through.