Hotel Development Opportunity - LoopNet

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Lori Medlin

President/CEO

Halifax County CVB

(800) 522-4282

[email protected]

Contact Information

Halifax County Convention & Visitors Bureau and Halifax County Economic Development Commission invite you to learn more

about this opportunity to develop a hotel and restaurant in Halifax County, North Carolina.

CONFIDENTIALITY AGREEMENTThis is a Confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to

express further interest in the project. This Memorandum contains select information pertaining to a proposed project and does

not purport to be a representation of the state of affairs of the project or the owner of the Property (the “Owner”), to be all-

inclusive, or to contain all of the information which prospective developers may require to evaluate their level of interest in the

project. Any and all estimates, including financial projections, as well as the information provided herein or elsewhere, are

provided for general reference purposes only. Certain estimates, projections and information may be based on assumptions

relating to the general economy, market conditions, competition and other factors which are beyond the control of the Owner

and REVPAR International (the consulting firm that conducted the Market Feasibility Study in 2018). Therefore, all projections,

assumptions and other information provided herein are subject to material variation. All references to acreages, square

footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be

made available to interested and qualified prospective developers.

Neither the Land Owner, REVPAR International, or Halifax County CVB, nor any of their respective directors, officers, affiliates

or representatives, make any representation or warranty, expressed or implied, as to the accuracy or completeness of this

Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this

Memorandum or use of its contents. You are to rely solely on your investigation and inspection of the Property in evaluating a

possible interest to develop the project.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers, and/or to

terminate discussions with any entity or person at any time with or without notice. The Owner shall have no legal commitment

or obligation to any entity or person reviewing this Memorandum or making an offer to purchase the Property unless and until

written agreement(s) have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s

obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will

hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other

person or entity without the prior written authorization of the Owner, Halifax County CVB, and REVPAR International. You also

agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interests of the Owner,

Halifax County CVB, or REVPAR International.

Cathy A. Scott

Executive Director

Halifax County Economic

Development Commission

(252) 519-2630

[email protected]

Contact Information

mailto:[email protected]


1

The Opportunity 1

Location & Site Overview 2

Leisure Demand 5

Overview of Proposed Hotel 9

Overview of Proposed Restaurant 15

I-95 HOTEL & RESTAURANT DEVELOPMENT OPPORTUNITY

HALIFAX COUNTY, NC

Halifax County CVB is pleased to present this

opportunity to develop a hotel and restaurant on a prime

+13.5-acre site located adjacent to I-95 in Halifax

County, North Carolina. The site is situated in the

northeast quadrant of the intersection of I-95 and US

158 in Halifax County (Exit 173), which is the first major

southbound exit off I-95 after crossing the border into

North Carolina from Virginia. It is a well-known stopover

location for travelers commuting north or south via I-95.

The subject site offers proximity to area demand

generators, while its location adjacent to I-95 is viewed

positively for a proposed hotel and restaurant as I-95

represents the area’s main source of room night and

food and beverage demand with over 42,000 average

daily traffic (ADT) counts.

1HOTEL DEVELOPMENT OPPORTUNITY, HALIFAX COUNTY, NC

Direct I-95 access & visibility

42,000 vehicles pass this exit daily

Growing demand base – both in terms of I-95 passenger counts,

businesses and visitors

Market support for +90-room upper-midscale, limited-service hotel, i.e.,

Fairfield Inn & Suites

Market support for +195-seat casual restaurant, i.e., Red Robin

1

Subject Site


HALIFAX COUNTY, NC

2I-95 HOTEL & RESTAURANT DEVELOPMENT OPPORTUNITY

HALIFAX COUNTY, NC


HALIFAX COUNTY, NC

Subject Site

± 13.5 acres

3

The 13.47 acre site contains the former Interstate Inn & Campground, along with the housing structures, which are in the process of being demolished with completion by

December 31, 2018. The balance of the site is vacant. Currently, there are no working drawings or plans for the site; however, according to the Halifax County CVB,

both a hotel and a free-standing restaurant would be an ideal (redeveloped) use for the site, given its adjacency and ease of access to I-95. Also, both facilities, if properly

situated on the site, will offer direct and excellent visibility from I-95. The small gas station at the front of the property can also be included in any potential deal.

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ADJACENTTO I-95

1st MAJOR SOUTHBOUND EXIT

IN NC

TRAFFIC COUNTS OF +42,000 CARS

+100,000 PEOPLE DAILY

ROCKFISH CAPITAL OF THE WORLD

GROWING LOCAL POPULATION AND

EMPLOYMENT BASE


HALIFAX COUNTY, NC

DEMOLITION OF

COMMERCIAL AND

HOUSING STRUCTURES

IN PROCESS COMPLETE

BY 12/31/18

Halifax County is known for its rich history and outdoor activities, such as fishing and

water activities, as well as several historic sites. Leisure demand (both transient and

group) for the hotel is the largest source of business in the market.

The largest generator of leisure demand in the market area is I-95. The interstate’s

connectivity from Maine to Florida provides interstate travelers a convenient stopping

point with an array of amenities. Interstate demand typically peaks in the summer

months from mid-June through mid-September when children are out of school and

families are on vacation. During this period, demand is at its heaviest for both area

hotels and restaurants, particularly on the weekends. Other generators of leisure

demand include:

▪ Rockfish or striped bass fishing on the Roanoke River. In fact, Weldon is known

as the “Rockfish Capital of the World” where roughly 3 million fish return from the

ocean each year to spawn. The main launching point for boats to enter the

Roanoke River is located 2.5 miles east of the subject site near historic downtown

Weldon. Per Halifax County CVB, the boat ramp sees over 70,000 launches

during the fishing season.

▪ Numerous outdoor attractions include nearby Lake Gaston, Roanoke Rapids

Lake, Sylvan Heights Bird Park, and the 3,893-acre Medoc Mountain State Park.

▪ Tourist/historic attractions include Historic Halifax, the Roanoke Canal Museum &

Trail, and Roanoke Rapids Theater.

▪ Youth sports tournaments, which are held at local athletic fields that are located

throughout the market area.

▪ A large number of family reunions due to the convenient location of Halifax County

along I-95.

LEISURE DEMAND


HALIFAX COUNTY, NC

3

The subject site offers great proximity to area

commercial demand generators.

The Roanoke Rapids-Weldon Area is the

commercial hub for northeastern North Carolina

and was recently named one of the Top 100 (#18)

Micropolitan Areas in the U.S. Local business hotel

demand generators include KapStone Paper &

Packaging, Halifax Regional Medical Center, Rural

Health Group, Klausner Lumber Two, Reser’s Fine

Foods, the NC Center for Automotive Research

(NCCAR) and other commercial and manufacturing

facilities located in the immediate area. Having

construction of renewable energy facilities and

electrical. natural gas, and rail infrastructure have

resulted in steadily increasing demand for hotel

rooms. Major highway improvements are planned in

the area over the next 3 to 5 years that can

significantly induce demand for accommodations.

Additionally, the Roanoke Rapids-Weldon Area

offers the closest option for hotel rooms for

corporate and commercial business travels in

nearby Warren, Northampton, and Hertford

counties.

COMMERCIAL DEMAND


HALIFAX COUNTY, NC


HALIFAX COUNTY, NC

3

PROXIMATE RESTAURANTSThe subject site is proximate to many nationally-branded and independent food and beverage facilities. A critical mass of such operations is an important factor for

both successful hotel and restaurant development. A stand-alone restaurant can be co-located adjacent to the subject hotel and offer hotel guests and the 100,000+

passengers passing the site daily on I-95 a viable food and beverage option, which enhances the appeal of the hotel site to potential guests.


HALIFAX COUNTY, NC

Overview of Proposed Hotel

14

765

8

23 Subject Site

OVERVIEW OF THEHOTEL COMPETITIVE SET

Several other lodging facilities are present in the area, but ultimately were not

included in the below competitive set based on location, facilities, room rate

structure, market orientation, and/or lack of national chain affiliation. This

includes economy-level and independent facilities, such as the Red Roof Inn

Roanoke Rapids, Super 8 by Wyndham Garysburg/Roanoke Rapids, the

Fairfax Motel, and Brookwood Motel.

Competitive Supply

Competitive Hotels# of

Rooms

Miles from

Subject

1. Hampton Inn Roanoke Rapids 126 0.7

2. Holiday Inn Express & Suites Roanoke Rapids SE 72 0.8

3. Sleep Inn & Suites Roanoke Rapids 105 0.6

4. Quality Inn Roanoke Rapids 60 0.5

5. Baymont by Wyndham Roanoke Rapids 40 0.9

6. Econo Lodge Weldon 45 0.2

7. Days Inn by Wyndham Weldon-Roanoke Rapids 99 0.2

8. Best Western Roanoke Rapids 80 2.9

9. Hilton Garden Inn Roanoke Rapids 147 3.3

Total 774 --

9


HALIFAX COUNTY, NC

The potential competitive set for an upper-midscale, limited-service hotel at

the subject site is provided in the following table. These properties were

selected based on their chain scale, quality of facilities, and overall condition.

Hampton Inn Roanoke RapidsHoliday Inn Express & Suites

Roanoke Rapids SESleep Inn & Suites Roanoke

Rapids

Quality Inn Roanoke RapidsBaymont by Wyndham

Roanoke RapidsEcono Lodge Weldon

Days Inns by Wyndham Weldon-Roanoke Rapids

Best Western Roanoke RapidsHilton Garden Inn Roanoke

Rapids11

4

$83.28

$80.89 $81.96

$81.00

$56.48 $55.57 $55.21

$59.21

67.8%68.7%

67.4%

73.1%

$40

$50

$60

$70

$80

$90

50%

55%

60%

65%

70%

75%

2014 2015 2016 2017

ADR RevPAR Occupancy

HOTEL COMPETITIVE SET PERFORMANCEOccupancy

Since 2014, room night demand for the defined competitive set

increased 7.3 percent compounded annually, or by roughly 39,400

room nights, while supply increased by 4.7 percent, or by 36,100

room nights, due to the opening of the Econo Lodge Weldon in May

2015. Occupancy growth was driven by increased leisure transient

travel and an improving national economy, as well as the additional

construction-based business accommodated in the area, some of

which came in the form of extended-stay business. Occupancy

growth was also driven by SMERF or leisure group business, such

as family reunions and youth sporting events, all of which is further

tied to an improving national economy.

Average Daily Rate (ADR)

Meanwhile, ADR for the competitive set decreased by 0.9 percent

compounded annually between 2014 and 2017, or $2.28. The

decrease is due to select hotels in the competitive set changing

their strategy and lowering rates minimally to gain more occupancy.

Furthermore, the Econo Lodge, an economy scale product, offers

lower room rates than many of the area hotels and ultimately put

downward pressure on the market’s ADR.

Revenue Per Available Room (RevPAR)

By combining the occupancy and ADR performance, RevPAR for

the competitive set increased by 1.6 percent, from $56.48 to

$59.21, from 2014 to 2017, driven by the robust demand increase.


HALIFAX COUNTY, NC

4

ESTIMATED HOTEL OPERATING PERFORMANCE

Proposed +90-Unit Fairfield Inn and Suites, Halifax CountyProjected Operating Results 2021 - 2026

Year OccupancyAverage Daily

Rate (1) RevPARMarket

OccupancyTotal Revenue

EBITDA After Reserve

$ Amount %

Stabilized Year (2) 75% $103.00 $77.25 -- $2,624,000 $767,000 29.2%

2021 62% $113.00 $70.06 70% $2,395,000 $563,000 23.5%

2022 67% $116.00 $77.72 71% $2,650,000 $699,000 26.4%

2023 75% $120.00 $90.00 71% $3,056,000 $897,000 29.4%

2024 75% $124.00 $93.00 72% $3,158,000 $935,000 29.6%

2025 75% $127.00 $95.25 72% $3,235,000 $949,000 29.3%

2026 75% $131.00 $98.25 72% $3,338,000 $982,000 29.4%

CAG (3) 3.6% (4) 3.0% 7.0% -- 6.9% 11.8% --

Notes: (1) Average daily rate has been rounded to the nearest dollar.(2) Presented in 2018 dollars.(3) Compound Annual Growth.(4) Compound Annual Growth for occupancy based on occupied room nights.


HALIFAX COUNTY, NC13

SUGGESTED HOTEL CONCEPT

Based on the market research and analysis

conducted, the following summarizes the

suggested facility plan for the hotel:

• Upper-midscale, limited-service product

• Nationally recognized brand affiliation

• 90 units

− 75% standard rooms

− 25% suites

• Indoor swimming pool and whirlpool

• Fitness center

• Sundry shop

• Business center

• ~1,000 square feet of meeting space

(divisible by two)

• Complimentary wireless high-speed

internet access throughout the hotel

• Guest laundry facility

• Adequate free guest parking

• Bus/boat/trailer parking


HALIFAX COUNTY, NC

Overview of Proposed Restaurant

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7

65 23

Subject Site

OVERVIEW OF RESTAURANT COMPETITIVE SETThe potential competitive set for a branded, casual (sit-down) restaurant at the subject site is provided in the following table. These seven restaurants

represent either competitive or comparable operations to the subject based on location, type/concept of restaurant, quality of facilities, and/or menu

pricing.

Competitive Supply

Competitive Restaurants ConceptMiles from

Subject

1. Applebee’s Grill & Bar Casual Dining American 0.6

2. Cracker Barrel Old County Store Casual Dining American 0.3

3. Ruby Tuesday Casual Dining American 0.4

4. Logan’s Roadhouse Casual Dining Steakhouse 0.4

5. Texas Steakhouse & Saloon Casual Dining Steakhouse 0.5

6. Ralph’s Barbecue Casual Dining Steakhouse 0.2

7. Mayflower Seafood Restaurant Casual Dining Seafood 0.7


HALIFAX COUNTY, NC

The balance of the restaurants in the area, such as all of the fast-food

restaurants, Waffle House, Pizza Hut, Subway, San Jose Mexican Restaurant,

Frazier’s, Carolina BBQ & Chicken, New China Restaurant, Pino’s Pizza, were

considered, but ultimately not included in our defined competitive set due to their

location, size, layout, physical condition, and/or menu offering (concept).

Applebee’s Grill & BarCracker Barrel Old County

StoreRuby Tuesday

Logan’s Roadhouse Texas Steakhouse & Saloon Ralph’s Barbecue

Mayflower Seafood

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SUGGESTED RESTAURANT

CONCEPTBased on the market research and analysis

conducted, the following summarizes the

suggested facility plan for the restaurant:

• Casual themed restaurant

• Nationally recognized brand affiliation

• +165 dining seats and 30 bar seats

• Free wi-fi

• Small private dining room off main

dining area

• Separate “To-Go” pick-up area

• Adequate free guest parking


HALIFAX COUNTY, NC

4

ESTIMATED RESTAURANT OPERATING PERFORMANCEProposed +195-Seat Red Robin Restaurant, Halifax County

Estimated Restaurant Sales Stabilized Year & Projected Operating Results 2021 – 2026

Meal PeriodCover Counts

Check AverageSales (1)

Amount % $ Amount %

Lunch 40,320 25% $12.00 $483,840 19%

Lunch To-Go 4,284 3% $11.00 $47,124 2%

Dinner 63,000 39% $20.00 $1,260,000 49%

Dinner To-Go 6,300 4% $18.00 $113,400 4%

Bar 46,116 29% $14.00 $645,624 2%

Total 160,020 100% $15.94 $2,549,988 100%

Year Total RevenueEBITDA After Reserve

$ Amount %

Stabilized Year (1) $2,550,000 $274,500 10.8%

2021 $2,508,000 $151,700 6.0%

2022 $2,798,000 $229,100 8.2%

2023 $2,956,000 $323,800 11.0%

2024 $3,045,000 $327,200 10.7%

2025 $3,137,000 $338,500 10.8%

CAG (3) 4.2% 4.3% --

Notes: (1) Presented in 2018 dollars.(2) EBITDA does not include rent/land lease, debt, or depreciation/ amortization.(3) Compound Annual Growth.


HALIFAX COUNTY, NC

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For More Information Please Contact

Lori R. Medlin

President/CEO

Halifax County Convention & Visitors Bureau

(800) 522-4282

[email protected]

Cathy A. Scott

Executive Director

Halifax County Economic Development Commission

(252) 519-2630

[email protected]



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Hotel Development Opportunity - LoopNet