Hotel-Motel

Comfort Inn Durham-Chapel Hill

3508 Mt Moriah Rd, Durham, NC 27707

Listing Price: $9,500,000

Cap Rate
7.83%
Number of Rooms
136
RevPAR
$52
Gross SF
66,708
Price/Room
$69,853
RRM
3.74
Price/Gross SF
$142.41
Year Built
1991

Investment Overview

Marcus & Millichap's International Hospitality Division, as an exclusive representative of the seller, is pleased to offer to qualified investors the Comfort Inn University at Durham-Chapel Hill on Mount Moriah Road in the Heart of Durham. The subject property is a 136-room, interior-corridor hotel situated on 3.82 prime acres located at the crossroads of Interstate 40 (99,000 Vehicles Per Day) and Durham-Chapel Hill Boulevard / Route 15-501 (52,000 Vehicles Per Day). The subject property is a four-story block-constructed, limited-service hotel that has undergone extensive renovations beginning in September of 2019 and ending in August of 2020 to exceed Choice Hotels' "Move to Modern" Property Improvement Plan requirements for the Comfort Inn brand. The seller has already undergone the burden of occupancy dips associated with taking rooms offline for a Property Improvement Plan in preparation for a change in ownership. Qualified investors will understand after having toured the property that the asset is offered with virtually zero change-in-ownership PIP from the franchise company, who has already signalized their satisfaction with the seller's renovation efforts. Current ownership employs management to operate the hotel as they are focused on other hotel assets and development projects in other states, offering a unique opportunity for an owner-operator to succeed in an otherwise high-barrier-to-entry market. The asset finished the 2019 fiscal year with a RevPAR penetration index of just 78.8% versus the competitive set: Quality Inn Chapel Hill, Comfort Inn & Suites Durham-Duke, La Quinta Inn & Suites Chapel Hill, Holiday Inn Express Chapel Hill, and SpringHill Suites Chapel Hill. This was comprised of an Occupancy penetration index of 86.6% and an ADR penetration index of 90.9%. A sophisticated owner-operator should be able to leverage the recently-completed renovations to significantly increase ADR penetration index. Coupled with all rooms now being online with renovations being completed, occupancy should also increase once stabilized following the impact of COVID-19. Rumored is also the demolition of the Quality Inn in the subject property's competitive set to make way for new mixed-use apartment & office development, which will leave the Comfort Inn as one of the only "value" mid-scale hotels in the area. This will undoubtedly drive guests to the Comfort Inn, whose occupancy will in-turn rise accordingly. The property benefits from a great variety of demand generators which has supported it throughout downturns such as the on-going COVID-19 and the property has performed far better than national averages, showing a RevPAR decrease of only 28% through June 2020 Year-over-Year. Investors should expect to stabilize in 2022 after seeing a very modest dip in 2021 related to COVID-19.

Investment Highlights

  • Fee Simple Interest in the Limited-Service, Four-Story Hotel
  • 136-Room, Interior Corridor Guest Rooms
  • Full Move to Modern Renovation Completed in 2019 & 2020: Zero PIP to Buyer
  • Irreplaceable Location in the Heart of Durham on 3.82 Acres
  • Located at the Crossroads of I-40 (99,000 VPD) and Route 15-501 (52,000 VPD)
  • Proximity to Variety of Demand Generators: University, Corporate, Medical, Transient

Exclusively Listed By

Hotel-Motel

Comfort Inn Durham-Chapel Hill

Listing Price: $9,500,000

Cap Rate
7.83%
Number of Rooms
136
RevPAR
$52
Gross SF
66,708
Price/Room
$69,853
RRM
3.74
Price/Gross SF
$142.41
Year Built
1991

Investment Highlights

  • Fee Simple Interest in the Limited-Service, Four-Story Hotel
  • 136-Room, Interior Corridor Guest Rooms
  • Full Move to Modern Renovation Completed in 2019 & 2020: Zero PIP to Buyer
  • Irreplaceable Location in the Heart of Durham on 3.82 Acres
  • Located at the Crossroads of I-40 (99,000 VPD) and Route 15-501 (52,000 VPD)
  • Proximity to Variety of Demand Generators: University, Corporate, Medical, Transient

Investment Overview

Marcus & Millichap's International Hospitality Division, as an exclusive representative of the seller, is pleased to offer to qualified investors the Comfort Inn University at Durham-Chapel Hill on Mount Moriah Road in the Heart of Durham. The subject property is a 136-room, interior-corridor hotel situated on 3.82 prime acres located at the crossroads of Interstate 40 (99,000 Vehicles Per Day) and Durham-Chapel Hill Boulevard / Route 15-501 (52,000 Vehicles Per Day). The subject property is a four-story block-constructed, limited-service hotel that has undergone extensive renovations beginning in September of 2019 and ending in August of 2020 to exceed Choice Hotels' "Move to Modern" Property Improvement Plan requirements for the Comfort Inn brand. The seller has already undergone the burden of occupancy dips associated with taking rooms offline for a Property Improvement Plan in preparation for a change in ownership. Qualified investors will understand after having toured the property that the asset is offered with virtually zero change-in-ownership PIP from the franchise company, who has already signalized their satisfaction with the seller's renovation efforts. Current ownership employs management to operate the hotel as they are focused on other hotel assets and development projects in other states, offering a unique opportunity for an owner-operator to succeed in an otherwise high-barrier-to-entry market. The asset finished the 2019 fiscal year with a RevPAR penetration index of just 78.8% versus the competitive set: Quality Inn Chapel Hill, Comfort Inn & Suites Durham-Duke, La Quinta Inn & Suites Chapel Hill, Holiday Inn Express Chapel Hill, and SpringHill Suites Chapel Hill. This was comprised of an Occupancy penetration index of 86.6% and an ADR penetration index of 90.9%. A sophisticated owner-operator should be able to leverage the recently-completed renovations to significantly increase ADR penetration index. Coupled with all rooms now being online with renovations being completed, occupancy should also increase once stabilized following the impact of COVID-19. Rumored is also the demolition of the Quality Inn in the subject property's competitive set to make way for new mixed-use apartment & office development, which will leave the Comfort Inn as one of the only "value" mid-scale hotels in the area. This will undoubtedly drive guests to the Comfort Inn, whose occupancy will in-turn rise accordingly. The property benefits from a great variety of demand generators which has supported it throughout downturns such as the on-going COVID-19 and the property has performed far better than national averages, showing a RevPAR decrease of only 28% through June 2020 Year-over-Year. Investors should expect to stabilize in 2022 after seeing a very modest dip in 2021 related to COVID-19.

Exclusively Listed By

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