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Hotel-Motel

Hampton Inn 3-Property Portfolio Michigan

5205 E Pickard Rd, Mount Pleasant, MI 48858

Listing Price: $27,000,000

Cap Rate
5.39%
Number of Rooms
276
RevPAR
$59
Gross SF
394,654
Price/Room
$97,826
RRM
4.54
Price/Gross SF
$68.41
Year Built
1996

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 276 room Three Property Portfolio (‘Hotels’ or ‘Properties’) including the Hampton Inn & Suites East Lansing/Okemos, the Hampton Inn Mt. Pleasant, and the Hampton Inn Midland. This set of high-quality well-built Properties have historically performed very well, producing strong cash flows from inception. Combined, the portfolio recorded over $2.5 million in net operating income (NOI) in 2019, which translates to 30.8 percent of gross revenues, after a four percent capital replacement reserve and three percent management fee. The Hotels are located in high barrier to entry submarkets within the highly sought-after Michigan markets. The three Hotels are located throughout the state, offering diversity and immediate scale for a new investor. Michigan and its submarkets have recognized a considerable rally in occupancies and RevPAR. The Hampton Inn & Suites East Lansing/Okemos is positioned off Interstate 96, less than 10 miles from downtown Lansing. The Lansing/East Lansing submarket has seen a major recovery over the last year, recording a massive 44.5 percent increase in December rooms sold compared to the same month in 2020. Twelve-month December RevPAR also saw a jump of 37.9 percent year-over-year. The Hampton Inn Mt. Pleasant is located near Highway 20 and Highway 127. The Michigan North Central Area Submarket saw December 2021 occupancies up nearly 40 percent from the prior year and twelve-month December RevPAR up 46.7 percent. The third Property, the Hampton Inn Midland, is off Highway 10, in the northern region of the city. The Midland/Flint Submarket recorded a 57.1 percent recovery in December occupancies, coupled with a 41 percent climb in twelve-month December RevPAR. As operations continue improving, new investors will be able to capitalize on potential RevPAR growth and continue pushing daily rates as well as occupancy. Each Hotel maintains brand affiliation with Hilton Hotels & Resorts and operates under the Hampton Brand. Hilton is one of the most trusted names in hospitality and offers great benefits for owners and guests alike. With more than 2,200 Hampton Inn (& Suites) by Hilton properties throughout 19 countries, the brand offers a hotel design that is unique and recognizable from its competitors. These Properties greatly benefit from their Hilton Brand Affiliation, which provides a powerful reservation system, and strong brand loyalty created by the popular Hilton HHonors Program. All Properties are offered fee simple and unencumbered by any management or debt.

Investment Highlights

  • Hampton Inn & Suites East Lansing/Okemos is a 3-Story, 100-Room, Upper-Midscale Hotel Built in 2002 and is Easily Accessible from Interstate 96
  • Hampton Inn & Suites East Lansing/Okemos had an Excellent RevPAR Penetration Index of 131 Percent in 2019 with $79.98 RevPAR in 2019
  • Hampton Inn Mt. Pleasant is a 3-Story, 89-Room, Upper-Midscale Hotel Built in 1996 and is Easily Accessible from Highway 127
  • Hampton Inn Mt. pleasant had an Excellent RevPAR Penetration Index of 126 Percent in 2019 with $76.30 RevPAR in 2019
  • Hampton Inn Midland is a 3-Story, 87-Room, Upper-Midscale Hotel Built in 1998 and is Easily Accessible from US-10
  • Hampton Inn Midland had a RevPAR Penetration Index of 99 Percent; Presenting an Opportunity to Add Value and Gain Market Share through Revenue Management Strategies

Exclusively Listed By

Broker of Record

  • Steven Chaben

    Senior Vice President / Regional Manager

    (248) 415-2600

    License(s) MI: 6502387903

    Michigan

Hotel-Motel

Hampton Inn 3-Property Portfolio Michigan

Listing Price: $27,000,000

Cap Rate
5.39%
Number of Rooms
276
RevPAR
$59
Gross SF
394,654
Price/Room
$97,826
RRM
4.54
Price/Gross SF
$68.41
Year Built
1996

Investment Highlights

  • Hampton Inn & Suites East Lansing/Okemos is a 3-Story, 100-Room, Upper-Midscale Hotel Built in 2002 and is Easily Accessible from Interstate 96
  • Hampton Inn & Suites East Lansing/Okemos had an Excellent RevPAR Penetration Index of 131 Percent in 2019 with $79.98 RevPAR in 2019
  • Hampton Inn Mt. Pleasant is a 3-Story, 89-Room, Upper-Midscale Hotel Built in 1996 and is Easily Accessible from Highway 127
  • Hampton Inn Mt. pleasant had an Excellent RevPAR Penetration Index of 126 Percent in 2019 with $76.30 RevPAR in 2019
  • Hampton Inn Midland is a 3-Story, 87-Room, Upper-Midscale Hotel Built in 1998 and is Easily Accessible from US-10
  • Hampton Inn Midland had a RevPAR Penetration Index of 99 Percent; Presenting an Opportunity to Add Value and Gain Market Share through Revenue Management Strategies

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 276 room Three Property Portfolio (‘Hotels’ or ‘Properties’) including the Hampton Inn & Suites East Lansing/Okemos, the Hampton Inn Mt. Pleasant, and the Hampton Inn Midland. This set of high-quality well-built Properties have historically performed very well, producing strong cash flows from inception. Combined, the portfolio recorded over $2.5 million in net operating income (NOI) in 2019, which translates to 30.8 percent of gross revenues, after a four percent capital replacement reserve and three percent management fee. The Hotels are located in high barrier to entry submarkets within the highly sought-after Michigan markets. The three Hotels are located throughout the state, offering diversity and immediate scale for a new investor. Michigan and its submarkets have recognized a considerable rally in occupancies and RevPAR. The Hampton Inn & Suites East Lansing/Okemos is positioned off Interstate 96, less than 10 miles from downtown Lansing. The Lansing/East Lansing submarket has seen a major recovery over the last year, recording a massive 44.5 percent increase in December rooms sold compared to the same month in 2020. Twelve-month December RevPAR also saw a jump of 37.9 percent year-over-year. The Hampton Inn Mt. Pleasant is located near Highway 20 and Highway 127. The Michigan North Central Area Submarket saw December 2021 occupancies up nearly 40 percent from the prior year and twelve-month December RevPAR up 46.7 percent. The third Property, the Hampton Inn Midland, is off Highway 10, in the northern region of the city. The Midland/Flint Submarket recorded a 57.1 percent recovery in December occupancies, coupled with a 41 percent climb in twelve-month December RevPAR. As operations continue improving, new investors will be able to capitalize on potential RevPAR growth and continue pushing daily rates as well as occupancy. Each Hotel maintains brand affiliation with Hilton Hotels & Resorts and operates under the Hampton Brand. Hilton is one of the most trusted names in hospitality and offers great benefits for owners and guests alike. With more than 2,200 Hampton Inn (& Suites) by Hilton properties throughout 19 countries, the brand offers a hotel design that is unique and recognizable from its competitors. These Properties greatly benefit from their Hilton Brand Affiliation, which provides a powerful reservation system, and strong brand loyalty created by the popular Hilton HHonors Program. All Properties are offered fee simple and unencumbered by any management or debt.

Exclusively Listed By

Broker of Record

  • Steven Chaben

    Senior Vice President / Regional Manager

    (248) 415-2600

    License(s): MI: 6502387903

    Michigan

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