QUEENSBURY, NEW YORK - Constant Contactfiles.constantcontact.com/4de8b7a9501/100cd269-f8e... · Inn & Suites Queensbury, a three-story interior corridor 78-room hotel located just

OFFERING MEMORANDUM

Presented by:

SLEEP INN & SUITES QUEENSBURYQUEENSBURY, NEW YORK

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This offering memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

NON-ENDORSEMENT NOTICE

CONFIDENTIALITY AND DISCLAIMER

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

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EXCLUSIVELY LISTED BY:

OFFICES THROUGHOUT THE U.S AND CANADAwww.marcusmillichap.com

JERRY SWONNational Hospitality GroupMANHATTAN OFFICEDirect: (212) 430-5219Mobile: (908) [email protected] License: NY 10401248594,NJ 0999581

TIM MCCAFFREYNational Hospitality GroupMANHATTAN OFFICEDirect: (212) 430-5197Mobile: (516) [email protected] License: NY 10401278221

DANIEL ZAGORIANational Hospitality GroupMANHATTAN OFFICEDirect: (212) 430-5211Mobile: (404) [email protected] License: NY 10401272902

MICHAEL HOLZNational Hospitality GroupMANHATTAN OFFICEDirect: (646) 805-1423Mobile: (561) [email protected] License: NY 10401293264

sleep inn & suites queensbury

TABLE OF CONTENTS

EXECUTIVE SUMMARYExecutive Summary 2 Investment Overview 3Summary of Terms 4

PROPERTY DESCRIPTIONFeatures and Amenities 6Local / Regional Map 7Area Attractions 8-9

FINANCIAL OVERVIEW Market Trend 12 RevPAR Comparison 13

Profit and Loss Summary 14Five-Year Cash Flow Pro Forma 15Five-Year IRR 16

COMPETITIVE PROPERTY SET

Competitve Properties 20

MARKET OVERVIEWMarket Overview 22Demographic Summary 23

SummaryE X E C U T I V E S U M M A R Y

EXECUTIVE SUMMARY

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sleep inn & Suites queensbury

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc. © 2015 Marcus & Millichap ACT ID Wxxxxxx

906 STATE ROUTE 9, QUEENSBURY, NEW YORK 12804

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ANNUALIZED OPERATING DATA

INCOME 2016 % OF GR PRO FORMA % OF GR

Room Revenue $1,932,264 100.0% $1,971,102 100.0%

Gross Revenue $1,932,264 100.0% $1,971,102 100.0%

Total Expenses $1,331,352 68.9% $1,298,376 65.9%

Net Operating Income $600,912 31.1% $672,726 34.1%

OFFERING SUMMARY

Proposed Price $6,500,000

Property Improvement Plan ($1,282 / Room Estimate) $100,000

Total Investment $6,600,000

Down Payment $1,625,000 / 25%

Total Number of Rooms 78

Occupancy 61.6%

ADR $110.22

RevPAR $67.87

Franchise Parent Company Choice Hotels

Franchise Affiliation Sleep Inn

Year Built | Renovated 2000 | 2014

Number of Stories 3

Type of Ownership Fee Simple

VITAL DATA

Cap Rate - Actual 9.2%

CAP Rate - Total Acquisition 9.1%

CAP Rate - Pro Forma 10.2%

Room Revenue Multiplier 3.4

Room Revenue Multiplier- Pro Forma 3.3

5 - Year IRR 30.0%

Price/Room (Total Investment) $84,615

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EXECUTIVE SUMMARY sleep inn & suites queensbury


Marcus & Millichap has been chosen to exclusively market for sale the Sleep Inn & Suites Queensbury, a three-story interior corridor 78-room hotel located just off Interstate 87 on Route 9, with easy access to all major area highways between Lake George and Saratoga Springs in Queensbury, New York The hotel is located approximately six miles from Floyd Bennett Memorial Airport and 47 miles from Albany International Airport Local businesses near the hotel include: C R Bard, Finch Paper, Irving Tissue, Navilyst Medical, and Travelers Insurance Amenities include: complimentary breakfast, indoor pool, fitness center, laundry facility, meeting rooms, and picnic area with barbecue grills Standard guest rooms feature a 32-inch flat-screen television, microwave, refrigerator, desk, hairdryer, complimentary WiFi, and alarm clock Suites feature a 37-inch flat-screen television, twin-size pull-out sofa, cupboards, and sink FranchiseChoice Hotels International (NYSE: CHH) is one of the largest and most successful lodging companies in the world Choice currently franchise more than 6,300 hotels, representing more than 500,000 rooms, in more than 35 countries and territories

In 2015, Sleep Inn & Suites brand hotels received an average of 70 3 percent of gross room revenue through the Choice Hotels Central Reservations System (CRS) and other Choice Hotels marketing channels

Investment SummaryThe Sleep Inn & Suites Queensbury represents the opportunity to acquire a well-maintained hotel located in a stable market Our Pro Forma analysis assumes an investor will increase operating efficiencies through cost management and modest revenue growth

Investment Highlights�� Located Approximately 47 Miles from Albany International Airport

�� Proximity to Area Attractions - Lake George Village, Saratoga Race Track, Great Escape and Splashwater Kingdom, Outlets, and Skiing Centers

�� Corporate and Leisure Demand - Proximity to Tech Valley; Hub of Technological Companies and Educational Facilities with a Focus on Biotech, Nanotechnology, and Life Sciences Key Players in Region Include: GlobalFoundries, SUNY Colleges of Nanoscale Science and Engineering, IBM, and General Electric Global Research

�� Proximity to Higher Education Institutions: Adirondack Community College, Skidmore College, SUNY Empire State College, Castleton State College, Union College, Schenectady County Community College, Fulton-Montgomery Community College, and Rensselaer Polytechnic Institute

EXECUTIVE SUMMARY

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sleep inn & Suites queensbury


Interest Offered

Fee simple interest in the Sleep Inn & Suites Queensbury, a 78-room hotel located at 906 State Route 9, Queensbury, New York 12804

Summary of Terms

Proposed Financing

FINANCING

Loan Amount $4,875,000

Loan Type Proposed New

Interest Rate 5.00%

Amortization 25 years

Loan information is time sensitive and subject to change Contact your local Marcus & Millichap Capital Corporation representative

Terms of the Sale

The Sleep Inn & Suites Queensbury is offered at $6,500,000 based on a capitalization rate of 9 2 percent Historic operating documentation and third party reports may be found in the online document data portal

Property Tours

Prospective purchasers are encouraged to visit the subject property prior to submitting offers However, all property tours must be arranged with the Marcus & Millichap listing agents Please do not contact the tenants, on-site management or staff without prior approval

DescriptionP R O P E R T Y D E S C R I P T I O N

PROPERTY DESCRIPTION sleep inn & suites queensbury

6 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc. © 2015 Marcus & Millichap ACT ID Wxxxxxx

Features and Amenities

COMMON AREA FEATURES

ROOM AMENITIES

SLEEP INN & SUITES QUEENSBURY906 State Route 9Queensbury, New York 12804

� Complimentary WiFi

� Fitness Center

� Indoor Swimming Pool

� Sun Deck / Lounge Chairs

� Business Center

� Laundry Facility

� Complimentary Newspaper

� Two Meeting Rooms

� Complimentary Parking

� Complimentary Breakfast / Cookies

� Picnic Area With Barbeque Grills

� Complimentary WiFi

� 32 Inch Flat Screen Television

� Premium Cable Channels

� Desk

� Microwave

� Hairdryer

� Refrigerator

� Alarm Clock

� Room Service

� Iron / Ironing Board

� Coffee / Tea Maker

� Telephone

� Pull-Out Sofa - Suites

� Daily Housekeeping

� Jacuzzi - Suites

� 37 Inch Flat Screen Television - Suites

� Oversized Vanity - Suites

PROPERTY DESCRIPTION

7



Local Map Regional Map

PROPERTY DESCRIPTION sleep inn & suites queensbury


Area AttractionsAREA ATTRACTIONS DISTANCE

Aviation Mall 0.5 Mile

Fun Spot 0.6 Mile

Pirates Cove Adventure Golf 0.8 Mile

Adventure Family Fun Center 0.8 Mile

Rejuvinations Spa Services 1.0 Mile

Guru Balloon Tour 1.0 Mile

Six Flags Great Escape and Spashwater Kingdom 1.2 Miles

Adventure Racing Family Fun Center 1.3 Miles

Glenwood Manor Antiques & More 1.3 Miles

Cole's Woods 1.3 Miles

Bay Meadows Golf Center 1.4 Miles

Six Flags Great Escape Lodge & Indoor Waterpark 1.4 Miles

SUNY Adirondack 1.7 Miles

Ichabod Crane Schoolhouse 2.0 Miles

Adirondack Sports Complex 2.0 Miles

Outlets at Lake George 2.2 Miles

Adirondack Outlet Mall 2.3 Miles

Chapman Historical Museum 2.3 Miles

Hiland Golf and Country Club 2.4 Miles

Lake George Plaza Outlet Mall 3.8 Miles

Glen Lake 3.0 Miles

The Shirt Factory 3.1 Miles

The Hyde Collection 3.2 Miles

West Mountain Ski Center 4.2 Miles

Hudson Falls Historic District 5.4 Miles

Fort William Henry Museum and Restoration 6.1 Miles

Lake George 7.0 Miles

MAJOR EMPLOYERS IN MARKET

COMPANY LOCAL EMPLOYEES

Glenn Falls Hospital 2,398

Great Escape Amusement Park 1,900

Keena Staffing Services 1,800

Glens Falls Manufacturing 960

Walmart 769

Angiodynamics Inc. 675

Navilyst Medical Inc. 670

C.R. Bard, Inc. 567

Adirondack Community College 500

Six Flags Great Escape Lodge A 425

Super Shop n Save 350

County of Warren 328

Lake George

PROPERTY DESCRIPTION

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Area Attractions

Fort William Henry Museum and Restoration

West Mountain Ski Center Guru Balloon Tour

Six Flags Great Escape

AnalysisF I N A N C I A L A N A LY S I S


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FINANCIAL ANALYSIS


Market Trend

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sleep inn & suites queensburyFINANCIAL ANALYSIS


RevPAR Comparison


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FINANCIAL ANALYSIS


Profit and Loss Summary

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sleep inn & suites queensburyFINANCIAL ANALYSIS


5-Year Cash Flow Pro Forma


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FINANCIAL ANALYSIS


5-Year IRR

CompetitiveC O M P E T I T I V E P R O P E R T Y S E T

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COMPETITIVE PROPERTY SET


Competitive Properties

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Hotel City, State Zip Built Rooms

* Sleep Inn & Suites Queensbury Queensbury, NY 12804 2000 78

1 Ramada Queensbury Lake George Queensbury, NY 12804 1972 110

2 The Queensbury Hotel Glens Falls, NY 12801 1926 124

3 Clarion Inn & Suites Lake George Lake George, NY 12845 1970 86

4Comfort Inn & Suites Saratoga Springs

Saratoga Springs, NY 12866 2002 83

5 Quality Inn Queensbury Glens Falls, NY 12804 2004 38

6Country Inn & Suites Lake George Queensbury Queensbury, NY 12804 2006 83

7 Red Roof Inn Glens Falls Lake George Glens Falls, NY 12804 2006 46

8 Comfort Suites Lake George Lake George, NY 12845 2007 98

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OverviewM A R K E T O V E R V I E W

MARKET OVERVIEW sleep inn & suites queensbury


Demographic Summary

POPULATION 1 MILE 3 MILES 5 MILES

2000 Population 3,080 32,127 48,395

2010 Population 3,304 34,051 52,393

2014 Population 3,248 33,821 52,596

2019 Population 3,333 34,864 54,304

INCOME

$0-$14,999 10 4% 10 6% 10 2%

$15,000-$24,999 12 2% 11 8% 11 2%

$25,000-$34,999 11 1% 11 0% 11 0%

$35,000-$49,000 10 4% 12 3% 12 9%

$50,000-$74,000 21 1% 22 4% 22 1%

$75,000-$99,000 10 3% 12 2% 13 1%

$100,000-$124,999 8 8% 8 6% 8 6%

$125,000-$149,000 4 2% 3 9% 4 4%

$150,000-$199,000 8 3% 4 5% 4 0%

$200,000-$249,000 1 4% 1 1% 1 0%

$250,000 + 2 0% 1 6% 1 5%

2014 Median Household Income $58,266 $55,100 $55,475

2014 Per Capita Income $36,418 $30,532 $29,697$76,072 $62,627 $55,957

2014 Average Household Income $77,545 $70,344 $70,111

HOUSEHOLDS 1 MILE 3 MILES 5 MILES

2000 Households 1,410 13,335 19,692

2010 Households 1,550 14,685 22,075

2014 Households 1,524 14,590 22,163

2019 Households 1,582 15,185 23,101

2014 Average Household Size 2 17 2 30 2 35

2000 Owner Occupied Housing Units 56 83% 57 70% 61 31%

2000 Renter Occupied Housing Units 38 87% 35 35% 31 16%

2000 Vacant 4 30% 6 95% 7 54%



2014 Vacant 7 84% 8 54% 8 46%



2019 Vacant 8 36% 8 68% 8 54%

MARKET OVERVIEW

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PopulationIn 2014, the population in your selected geography is 52,596 The population has changed by 8 68% since 2000 It is estimated that the population in your area will be 54,303 five years from now, which represents a change of 3 24% from the current year The current population is 48 42% male and 51 57% female The median age of the population in your area is 42 5, compare this to the Entire US average which is 37 3 The population density in your area is 668 16 people per square mile

Households

There are currently 22,163 households in your selected geography The number of house-holds has changed by 12 54% since 2000 It is estimated that the number of households in your area will be 23,100 five years from now, which represents a change of 4 23% from the current year The average household size in your area is 2 34 persons

Income

In 2014, the median household income for your selected geography is $55,475, compare this to the Entire US average which is currently $51,972 The median household income for your area has changed by 39 73% since 2000 It is estimated that the median household income in your area will be $64,663 five years from now, which represents a change of 16 56% from the current year

The current year per capita income in your area is $29,697, compare this to the Entire US average, which is $28,599 The current year average household income in your area is $70,111, compare this to the Entire US average which is $74,533

Demographic Summary

Race & EthnicityThe current year racial makeup of your selected area is as follows: 95 60% White, 1 38% Black, 0 02% Native American and 0 90% Asian/Pacific Islander Compare these to Entire US averages which are: 71 60% White, 12 70% Black, 0 18% Native American and 5 02% Asian/Pacific Islander

People of Hispanic origin are counted independently of race People of Hispanic origin make up 2 12% of the current year population in your selected area Compare this to the Entire US average of 17 13%

Housing

In 2000, there were 13,056 owner occupied housing units in your area and there were 6,635 renter occupied housing units in your area The median rent at the time was $468

Employment

In 2014, there are 31,171 employees in your selected area, this is also known as the daytime population The 2000 Census revealed that 61 18% of employees are employed in white-collar occupations in this geography, and 38 90% are employed in blue-collar occupations In 2014, unemployment in this area is 7 90% In 2000, the average time traveled to work was 20 7 minutes

Glen Lake

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EXCLUSIVELY LISTED BY:

OFFICES THROUGHOUT THE U.S AND CANADAwww.marcusmillichap.com

JERRY SWONNational Hospitality GroupMANHATTAN OFFICEDirect: (212) 430-5219Mobile: (908) [email protected] License: NY 10401248594,NJ 0999581

TIM MCCAFFREYNational Hospitality GroupMANHATTAN OFFICEDirect: (212) 430-5197Mobile: (516) [email protected] License: NY 10401278221

DANIEL ZAGORIANational Hospitality GroupMANHATTAN OFFICEDirect: (212) 430-5211Mobile: (404) [email protected] License: NY 10401272902

MICHAEL HOLZNational Hospitality GroupMANHATTAN OFFICEDirect: (646) 805-1423Mobile: (561) [email protected] License: NY 10401293264

Documents

QUEENSBURY, NEW YORK - Constant Contactfiles.constantcontact.com/4de8b7a9501/100cd269-f8e... · Inn & Suites Queensbury, a three-story interior corridor 78-room hotel located just