candlewood suites athens, georgia · 2017. 3. 15. · • consistent performance with upside...

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CANDLEWOOD SUITESATHENS, GEORGIA

/ PREPARED BY HUNTER HOTEL ADVISORS / 1/ PREPARED BY HUNTER HOTEL ADVISORS /

CANDLEWOOD SUITESATHENS, GEORGIAOFFERING MEMORANDUM

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/ PREPARED BY HUNTER HOTEL ADVISORS /

NATIONAL REACH. LOCAL KNOWLEDGE.Hunter Hotel Advisors is pleased to present to qualified investors the opportunity to acquire the fee simple interest in the 97-room Candlewood Suites located near the University of Georgia in Athens, Georgia.

Tim OsborneVice [email protected]

Daniel RileySenior [email protected]

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TABLE OF CONTENTS

Executive Summary .........................................................................................................3

Property Overview ...........................................................................................................5

Property Description .........................................................................................................7

Financials ........................................................................................................................8

Market Summary ............................................................................................................15

About Hunter .................................................................................................................26

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EXECUTIVESUMMARYInvestment Highlights• Highway Location in College Market: The Candlewood Suites features

an attractive location along Atlanta Highway (Highway 78) across the street from Georgia Square Mall and within close proximity to all of the businesses in the heart of Athens’ commercial and retail corridor. The property is a quick drive to the University of Georgia campus (34,000+ students) and near numerous dining and shopping options. Athens is part of Athens-Clark County, the 6th largest county in Georgia offering a population in excess of 115,000 people. Athens is easily accessible from US-441, US-78 and GA-316, with Hartsfield-Jackson International Airport only 80 miles away. Located 20 miles from I-85 and 30 miles from I-20, Athens affords easy access to the City of Atlanta and the Port of Savannah. Athens’ own Ben Epps Airport is a mere three miles from the heart of downtown. CSX and Norfolk Southern provide freight service in and out of Athens, with lines running directly to the Athena Industrial Park.

• Consistent Performance With Upside Potential: The property has achieved consistent performance on a year-over-year basis with nearly 13% RevPAR growth since Year End 2014. Occupancy has increased dramatically since Year End 2015 and the market is set to begin growing average rates now that corporate and leisure demand has outpaced supply. Room Revenue grew by 8.6% at Year End 2016 and the competitive environment achieved strong growth in occupancy and RevPAR in recent years. Future growth will continue current pacing as the Athens market is expanding and becoming more diverse.

• Attractive IHG Branding: The Candlewood Suites brand is attractive to Purchasers and Owners due to the strong support provided by the Intercontinental Hotels’ Group (IHG) systems. The brand provides operational support and guidance and the reservations system and customer loyalty programs are amongst the best in the lodging business today.

Price: $7,250,000 Price per Key: $74,742Fee Simple Interest Conveyed.

• Owner / Operator or Regional Hotel Company Opportunity: The Candlewood Suites is a four-story, interior corridor hotel situated within close proximity to many of the area’s year-round recreational opportunities as well as the region’s corporate offices. It’s size at 97 guestrooms is ideal for an owner / operator or group of investors to acquire and operate the business.

• Discount to Replacement Costs: At the asking price presented herein, the Candlewood Suites will trade at a meaningful discount to replacement costs. The price-point of the property is within reach of smaller and medium-sized investors and regional hotel companies that might not otherwise be able to acquire such a building due to large initial equity/cash investments.

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INVESTMENT CONSIDERATIONS

Fee SimpleThe hotel will be sold with fee simple interests conveyed.

Property Improvement Plan (PIP)The franchise license is considered an exceptionally valuable asset of the Candlewood Suites. It provides a high level of franchise flexibility for an Owner, traveler allegiance and recognition, an excellent computerized reservation system, and a well-known and highly regarded rewards program.

On change of ownership, it is anticipated that IHG will require the new owner to complete certain improvements, upgrades and modifications to the hotel as a condition of the issuance of a new license. The Buyer will be responsible for all repairs and renovations needed to satisfy IHG’s requirements. The Change of Ownership PIP will be made available for review in the dataroom.

Unencumbered by Management The Candlewood Suites Hotel is being offered unencumbered by its current management agreement, thereby providing an excellent opportunity for an owner to fully control the property’s operations.

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PROPERTYOVERVIEW

OverviewThe four-story, interior corridor, 97-guestroom Candlewood Suites is located in a densely developed commercial and retail corridor along Atlanta Highway (Highway 78) just west of the University of Georgia campus (34,000+ students). The property was built in 2009, renovated in 2015, and is built in a straight-line configuration. Situated across Atlanta Highway from Georgia Square Mall, the Candlewood Suites is located within close proximity to the Caterpillar manufacturing facility (2.5 miles away) as well as a number of manufacturers and distributors including Bimbo Bakeries, Dixie Canner, Benchmark Automation, Evoshield, Quality Deer Management Association (QDMA), Central Label Products, Compass Industrial Products, and Formtech Enterprises to name a few examples. Large retailers nearby include Sam’s Club, Southern Surplus, multiple automotive dealerships, Mattress Firm, Belk’s, Macy’s, JCPenney, Academy Sports, Target, Office Depot, and Hobby Lobby to name a few. Additional demand generators and attractions in the area include Medical Center of Central GA, Georgia Theatre, Sanford Stadium, Oconee Veterans Park, and the Classic Center.

The University of Georgia, the flagship university of the State of Georgia, is home to more than 34,000+ students, generating significant room demand in the market throughout the year with graduation, educational seminars, athletics, and other leisure and business related activities. The university generates multiple “sell out” weekday and weekend dates throughout the year and area hotels are often full during these periods.

Construction Features • Originally opened in July 2009• 4-story, interior corridor • 97 guestrooms • Outdoor gazebo, grill, and picnic tables

6/ PREPARED BY HUNTER HOTEL ADVISORS /

UnIVERSITy OF GEORGIA

SAnFORD STADIUM

Area Map

UnIVERSITy OF GEORGIA HEALTH SCIEnCES CAMPUS

ST. MARy’S HEALTH CARE SySTEM

DOWnTOWn ATHEnS HISTORIC DISTRICT

ATHEnS REGIOnAL MEDICAL CEnTER

ATHEnS BEn EPPS AIRPORT

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PROPERTY DESCRIPTIONHotel Configuration and LayoutThe ground floor consists of the lobby, breakfast area, administrative offices, and back-of-the-house areas such as commercial kitchen, maintenance room and storage, and the commercial laundry equipment. Guestrooms offer a flat screen television, armoire, nightstands, desk and / or activity table, closet, iron and ironing board, hairdryer, telephone, internet connectivity, and mini refrigerators and microwaves.

DiningThe Candlewood Suites offers a complimentary breakfast to its guests. The complimentary breakfast includes both hot and cold items and is available daily. Additionally, the property is located within close proximity to a number of restaurants including Olive Garden, Rafferty’s, Sonny’s BBQ, McDonald’s, Zaxby’s Chicken Fingers, and a number of other options in the immediate area due to its location in a mature commercial and retail corridor.

Business CenterThe business center features a computer and printer workstation for guests to use during their stay. There are also meeting rooms, a fax machine, and a printer available to guests. Audio/Visual equipment is available for rental.

Fitness CenterThe hotel features an upgraded 24-hour fitness center with the standard mix of exercise machines and treadmills.

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HISTORICAL STATEMENT97 Guestrooms & Suites year End 2015 year End 2016 TTM January 2017

Occupancy 60.6% 67.8% 68.1%

Average Room Rate $79.71 $77.22 $76.93

RevPAR $48.28 $52.32 $52.42

TRevPAR** $48.52 $52.66 $52.78

Revenue Per Room $17,512 $19,021 $19,060

Available Rooms 35,405 35,502 35,502

Occupied Rooms 21,444 24,053 24,189

Department Revenue

Room Revenue $1,698,627 98.9% $1,844,992 98.7% $1,848,836 98.7%

Other Revenue $19,149 1.1% $24,566 1.3% $24,858 1.3%

Total Revenue $1,717,776 100.0% $1,869,558 100.0% $1,873,694 100.0%

Departmental Expenses

Room Expense $347,006 20.4% $370,373 20.1% $383,306 20.7%

Other Expense $22,404 117.0% $21,507 87.5% $21,968 88.4%

Total Departmental Expenses $369,410 21.5% $391,880 21.0% $405,274 21.6%

Gross Operating Income $1,348,366 78.5% $1,477,678 79.0% $1,468,420 78.4%

Undistributed Operating Expenses

Administrative & General $188,567 11.0% $205,293 11.0% $209,504 11.2%

Sales and Marketing $55,165 3.2% $50,763 2.7% $52,125 2.8%

Utilities $121,095 7.0% $125,116 6.7% $125,125 6.7%

Repairs and Maintenance $100,991 5.9% $76,267 4.1% $77,765 4.2%

Franchise Fees $167,518 9.8% $192,789 10.3% $190,358 10.2%

Total Undistributed Operating Expenses $633,336 36.9% $650,228 34.8% $654,877 35.0%

Gross Operating Profit $715,030 41.6% $827,450 44.3% $813,543 43.4%

Fixed Expenses

Management Fee (3.0%) $51,533 3.0% $56,087 3.0% $56,211 3.0%

FF&E Reserve (4.0%) $68,711 4.0% $74,782 4.0% $74,948 4.0%

Insurance $24,554 1.4% $20,058 1.1% $20,311 1.1%

Property Taxes $66,336 3.9% $69,659 3.7% $69,902 3.7%

Total Fixed Expenses $211,134 12.3% $220,586 11.8% $221,372 11.8%

net Operating Income* $503,896 29.3% $606,864 32.5% $592,171 31.6%

*NOI includes a 3% deduction for Management Fee and a 4% deduction for FF&E Reserve**TRevPAR is Total Revenue divided by Available Rooms***Room Revenue at Year End 2014 was $1,645,962

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PRO FORMA STATEMENT97 Guestrooms & Suites Pro Forma year 1 Pro Forma year 2 Pro Forma year 3 Pro Forma year 4 Pro Forma year 5

Occupancy 66.4% 61.1% 59.7% 61.1% 62.3%

Average Room Rate $82.37 $88.24 $91.73 $93.57 $95.44

RevPAR $54.67 $53.88 $54.79 $57.13 $59.44

TRevPAR** $55.36 $54.52 $55.43 $57.78 $60.10

Revenue Per Room $19,954 $19,665 $19,999 $20,910 $21,695

Available Rooms 35,405 35,405 35,405 35,502 35,405

Occupied Rooms 23,497 21,618 21,148 21,677 22,050

Department Revenue

Room Revenue $1,935,525 98.7% $1,907,468 98.8% $1,939,924 98.9% $2,028,235 98.9% $2,104,410 98.9%

Other Revenue $24,672 1.3% $22,698 1.2% $22,417 1.1% $22,977 1.1% $23,593 1.1%

Total Revenue $1,960,197 100.0% $1,930,166 100.0% $1,962,340 100.0% $2,051,213 100.0% $2,128,004 100.0%

Departmental Expenses

Room Expense $387,105 20.0% $381,494 20.0% $384,105 19.8% $399,562 19.7% $414,569 19.7%

Other Expense $21,712 88.0% $19,975 88.0% $19,727 88.0% $20,220 88.0% $20,762 88.0%

Total Departmental Expenses $408,817 20.9% $401,468 20.8% $403,831 20.6% $419,782 20.5% $435,331 20.5%

Gross Operating Income $1,551,381 79.1% $1,528,698 79.2% $1,558,509 79.4% $1,631,430 79.5% $1,692,673 79.5%

Undistributed Operating Expenses

Administrative & General $176,418 9.0% $173,715 9.0% $176,611 9.0% $184,609 9.0% $191,520 9.0%

Sales and Marketing $58,806 3.0% $57,905 3.0% $58,870 3.0% $61,536 3.0% $63,840 3.0%

Utilities $123,361 6.3% $114,573 5.9% $113,140 5.8% $117,055 5.7% $120,172 5.6%

Repairs and Maintenance $39,204 2.0% $40,533 2.1% $43,171 2.2% $47,178 2.3% $48,944 2.3%

Franchise Fees $196,020 10.0% $193,017 10.0% $196,234 10.0% $205,121 10.0% $212,800 10.0%

Total Undistributed Operating Expenses $593,809 30.3% $579,743 30.0% $588,026 30.0% $615,500 30.0% $637,277 29.9%

Gross Operating Profit $957,572 48.9% $948,955 49.2% $970,482 49.5% $1,015,931 49.5% $1,055,396 49.6%

Fixed Expenses

Management Fee (3.0%) $58,806 3.0% $57,905 3.0% $58,870 3.0% $61,536 3.0% $63,840 3.0%

FF&E Reserve (4.0%) $78,408 4.0% $77,207 4.0% $78,494 4.0% $82,049 4.0% $85,120 4.0%

Insurance $21,562 1.1% $21,232 1.1% $21,586 1.1% $22,563 1.1% $23,408 1.1%

Property Taxes $72,527 3.7% $77,207 4.0% $80,456 4.1% $84,100 4.1% $87,248 4.1%

Total Fixed Expenses $231,303 11.8% $233,550 12.1% $239,405 12.2% $250,248 12.2% $259,616 12.2%

net Operating Income* $726,269 37.1% $715,405 37.1% $731,077 37.3% $765,683 37.3% $795,779 37.4%

*NOI includes a 3% deduction for Management Fee and a 4% deduction for FF&E Reserve**TRevPAR is Total Revenue divided by Available Rooms

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FINANCIAL HIGHLIGHTSSOURCES AND USE OF FUNDS:

Number of Rooms 97 Per Room

PIP $1,164,000 $12,000 Estimated 1st Mortgage $5,775,000 70.0%Purchase Price $7,086,000 $73,052 Estimated Equity 2,475,000 30.0%

$8,250,000 $85,052 Total Sources of Funds $8,250,000 100.0%

FINANCING:First Mortgage Amount $5,775,000Annual Debt Payment $425,563

Interest Rate 5.50% 25

Monthly Debt Payment $35,464Total Five Year

Year 1 Year 2 Year 3 Year 4 Year 5 Principal ReductionBeginning Loan Balance $5,775,000 $5,664,299 $5,547,354 $5,423,813 $5,293,303Interest Paid 314,862 308,618 302,021 295,052 287,691Principal Reduction 110,701 116,945 123,542 130,510 137,872 $619,569Annual Payment 425,563 425,563 425,563 425,563 425,563Ending Loan Balance $5,664,299 $5,547,354 $5,423,813 $5,293,303 $5,155,431

Year 1 Year 2 Year 3 Year 4 Year 5 Escalation Factor applied to NOI: 0.0% -1.5% 2.2% 4.7% 3.9%

Estimated Net Operating Income $726,269 $715,405 $731,077 $765,683 $795,779Debt Payment 425,563 425,563 425,563 425,563 425,563 Estimated Cash Flow After Debt Svce. $300,706 $289,842 $305,514 $340,120 $370,217

Estimated Cash on Cash Yield 12.1% 11.7% 12.3% 13.7% 15.0%

ESTIMATED PROFIT ON SALE AT END OF YEAR FIVE:

Year 5 NOI $795,779Cap Rate on Sale (end of 5th year) 9.00% Projected Sales Price $8,841,991 Selling Costs 3.00% Sale Price Per Room $91,155Net Sale Price 8,576,731Less: Loan Payoff 5,155,431Less Initial Equity 2,475,000Estimated Capital Gain 946,300 Estimated Capital Gain $946,300

ESTIMATED LEVERAGED INTERNAL RATE OF RETURNYear 1 Year 2 Year 3 Year 4 Year 5

Initial Equity Investment $2,475,000Annual Cash Flow after Debt $300,706 $289,842 $305,514 $340,120 $370,217Residual Value 8,841,991Minus Selling Costs (3%) 265,260Minus Debt Outstanding 5,155,431

(2,475,000) $300,706 $289,842 $305,514 $340,120 $3,791,517Annual Cash on Cash Yield 12.1% 11.7% 12.3% 13.7% 153.2%

ESTIMATED LEVERAGED INTERNAL RATE OF RETURN 18.1%

Amortization of Principal

Total Cash Flow after Debt Service

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FINANCIAL HIGHLIGHTS

TTM January 2017 STR Report

Occupancy (%) year End 2015 year End 2016 TTM January 2017 Pro Forma year 1 Pro Forma year 2 Pro Forma year 3 Pro Forma year 4 Pro Forma year 5

Subject 60.6% 67.8% 68.1% 66.4% 61.1% 59.7% 61.1% 62.3%

Comp Set 70.3% 71.8% 72.0% 69.9% 66.4% 66.4% 66.4% 67.7%

Comp Set %Chg Act/Fcst -1.7% 2.1% 2.0% -3.0% -5.0% 0.0% 0.0% 2.0%

Index Penetration 86.1 94.4 94.6 95.0 92.0 90.0 92.0 92.0

Subject Rank 5 of 7 5 of 7 5 of 7

ADR ($) year End 2015 year End 2016 TTM January 2017 Pro Forma year 1 Pro Forma year 2 Pro Forma year 3 Pro Forma year 4 Pro Forma year 5

Subject $79.71 $77.22 $76.93 $82.37 $88.24 $91.73 $93.57 $95.44

Comp Set $78.54 $79.60 $79.97 $82.37 $84.84 $86.54 $88.27 $90.04

Comp Set %Chg Act/Fcst 7.4% 1.4% 1.7% 3.0% 3.0% 2.0% 2.0% 2.0%



RevPAR ($) year End 2015 year End 2016 TTM January 2017 Pro Forma year 1 Pro Forma year 2 Pro Forma year 3 Pro Forma year 4 Pro Forma year 5

Subject $48.28 $52.32 $52.42 $54.67 $53.88 $54.79 $57.13 $59.44

Comp Set $55.24 $57.14 $57.60 $57.55 $56.31 $57.43 $58.58 $60.95

Comp Set %Chg Act/Fcst 5.6% 3.4% 3.8% -0.1% -2.2% 2.0% 2.0% 4.0%



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COMPETITIVE ANALYSIS

Occupancy Candlewood Suites Competitive Set

Dec-15 43.9% 62.0%

Jan-16 51.1% 60.5%

Feb-16 62.7% 75.3%

Mar-16 61.2% 75.7%

Apr-16 59.3% 81.2%

May-16 65.8% 75.4%

Jun-16 88.6% 78.9%

Jul-16 92.3% 72.7%

Aug-16 76.0% 70.3%

Sep-16 78.3% 69.3%

Oct-16 77.0% 76.1%

Nov-16 58.8% 66.4%

Dec-16 42.2% 60.2%

Jan-17 55.7% 63.3%

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Monthly Occupancy

Candlewood Suites Athens

Competitive Set

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$55.00

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Competitive Set

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Monthly RevPAR


Competitive Set

ADR Candlewood Suites Competitive Set

Dec-15 $69.77 $65.98

Jan-16 $74.12 $69.34

Feb-16 $83.36 $75.13

Mar-16 $85.92 $75.81

Apr-16 $87.32 $78.32

May-16 $84.05 $79.87

Jun-16 $65.60 $74.71

Jul-16 $64.53 $73.12

Aug-16 $67.84 $73.36

Sep-16 $75.64 $92.08

Oct-16 $86.04 $94.49

Nov-16 $89.37 $94.69

Dec-16 $74.11 $73.58

Jan-17 $70.19 $74.74

RevPAR Candlewood Suites Competitive Set

Dec-15 $30.65 $40.94

Jan-16 $37.91 $41.94

Feb-16 $52.24 $56.56

Mar-16 $52.55 $57.39

Apr-16 $51.82 $63.60

May-16 $55.34 $60.24

Jun-16 $58.11 $58.95

Jul-16 $59.53 $53.14

Aug-16 $51.53 $51.56

Sep-16 $59.21 $63.81

Oct-16 $66.21 $71.95

Nov-16 $52.51 $62.84

Dec-16 $31.25 $44.31

Jan-17 $39.07 $47.31

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COMPETITIVE SETProperty name City Rooms Open Date

Candlewood Suites Athens Bogart, GA 97 200907

Holiday Inn Express Athens University Area Athens, GA 160 197406

Comfort Inn & Suites Athens Athens, GA 69 199702

InTown Suites Athens Athens, GA 139 199904

Country Inn & Suites Athens Athens, GA 81 200803

Sleep Inn & Suites Athens Athens, GA 65 200910

Springhill Suites Athens Athens, GA 99 200907

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Competitive Set Map

COUnTRy Inn & SUITES ATHEnSCOMFORT Inn & SUITES ATHEnS

HOLIDAy Inn ExPRESS ATHEnS UnIVERSITy AREA

ST. MARy’S HEALTH CARE SySTEM

SLEEP Inn & SUITES ATHEnS

InTOWn SUITES ATHEnS

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Athens, GeorgiaLocated in northern Georgia, Athens is 70 miles east of Atlanta and just south of the Blue Ridge Mountains. Athens is one of the largest cities in Georgia and has a population greater than 120,000. It is also the county seat of Clarke County, which has a population of more than 121,000. Considered one of the most progressive cities in the South, Athens is a thriving college town centered on the rapidly growing University of Georgia.

Much of the city’s economy and culture revolves the university and other institutional entities. With more than 35,000 students, University of Georgia’s athletic and academic events attract thousands of visitors, generating hotel demand and boosting the city’s revenues. It is estimated that the University of Georgia contributes more than $2 billion to the Athens economy each year. Other major employers in the county include local government and medical and health care centers.

Culturally, Athens is also home to extensive entertainment options. Downtown Athens is east of the hotel and contains more than 65 specialty shops, 55 restaurants, and 40 nightspots. Located east of the hotel, Five Points is another popular area for shopping and dining in a beautiful 1920’s-era neighborhood. Other cultural highlights include the many music venues, breweries, the State Botanical Gardens and the Georgia Museum of Art. At these venues and more, Athens hosts numerous exciting annual festivals such as AthFest and Classic City Brew Fest.

MARKET SUMMARY

University of Georgia Students

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/ PREPARED BY HUNTER HOTEL ADVISORS /Downtown Athens, GA

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Accolades & RankingsAthens and Clarke County offer a diverse mix of cultural, educational, and economic opportunities and emerges as a remarkable well-rounded community. The following selection of awards, accolades, and rankings are important to the understanding of what makes Athens a great place to live, work, and play:

Overall Community Awards• One of “Four Great Places to Retire,” Fortune Magazine• #1 College Music Scene, Rolling Stone Magazine• Best Place to Raise Your Kids, Business Week Magazine• Best Cities for Jobs, CareerBuilder.com

Business Climate• The Best Places in Georgia for Job Seekers, Nerdwallet.com • Certified Work Ready Community, Georgia Work Ready as an Economic Tool• #1 Small-Sized Communities for 2012, The Fourth Economy

Quality of Life• #4 Great College Towns to Retire To, Kiplinger• #3 Best Places to Live in Georgia, MOVOTO Blog• America’s Prettiest Towns, Forbes.com • Top 25 Best Places to Retire, CnnMoney

Culture• The South’s #1 Foodie City for Groups, ConventionSouth Magazine• The 7 Best Cities for Organic Food, Safe Organics• #1 City with the Best Music Scenes, Livability.com

MARKET SUMMARY

Downtown Athens, GA

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Athens EconomyAthens is the fourth largest city in Georgia, located less than two hours north of Atlanta. The local economy is anchored by institutional employers, most notably by the University of Georgia. UGA is the flagship university for the State of Georgia and employs almost 10,000 people in the county.

Other key institutional employers include Athens Regional Medical Center, St. Mary’s Health Care System, Athens Clarke County Government, and Clarke County School District.

Approximately two hours from Hartsfield-Jackson, the busiest airport in the world, Athens is conveniently located for corporations and industrial businesses. In addition to location, the economy benefits from solid population and labor force growth with a relatively diverse industry mix.

Top private employers include Pilgrim’s, Caterpillar, Dial America, Power Partners Inc., Baldor, and more.

County officials are committed to creating and expanding business communities to meet the needs of the well-educated workforce. The city offers generous tax credits to entice relocations and to encourage existing companies to expand.

MARKET SUMMARY

Company Industry Employees

University of Georgia Higher Education 9,874

Athens Regional Medical Center Healthcare 3,500

Athens Clarke County Government 1,586

Pilgrim's Food Processing 1,829

St. Mary's Health Care System Healthcare 1,044

Clarke County School District Education 2,838

Caterpillar Excavators and Tractors 900

Dial America Telemarketing 500

Power Partners Inc. Transformers, Chillers, Solar Panels 480

Baldor Industrial Motors 480

Carrier Transicold Truck Refrigeration Units 460

Merial Animal Health Products 450

Burton + Burton Balloons & Gift Products 300

Skaps Non-Woven Plastics 235

Noramco Inc Medical Grade Products 210

CertainTeed Fiberglass Insulation 198

Evergreen Packaging Food Grade Cartons & Printing 170

NKC Nakanishi Metal Works Co., Ltd. Automotive Parts 141

Source: Athens-Clarke County Economic Development

Caterpillar

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Athens Regional Medical Center The Athens Regional Medical Center is comprised of an acute care facility and four urgent care centers. The medical center employs over 3,000 people including a network of highly-skilled physicians and specialists. In 2011, Athens Regional was named the “Large Hospital of the Year” for the state of Georgia by the Georgia Alliance of Community Hospitals. The Athens Regional medical center serves 17 counties in northeast Georgia.

MARKET SUMMARY

Athens-Clarke County GovernmentWith 47 departments and over 1,500 employees the Athens-Clarke County Government is the third largest employer in the area. The Athens-Clarke County government continues to grow and hire more people to work on community development and improvement projects. Many of these projects aim to increase the number of businesses in the area.

Athens-Clarke County CourthouseAthens Regional Medical Center

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The University of GeorgiaFounded in 1785 as the country’s first state-chartered university, the University of Georgia (UGA) sits on a beautiful 759-acre campus in Athens. In fact, the North Campus is on the U.S. National Register of Historic Places as a Designated Historic District. Considered the state’s flagship university, UGA has more than 35,000 students enrolled in a given year and is the leading employer in Athens. It is estimated that the University of Georgia contributes more than $2 billion to the Athens economy annually.

The University of Georgia’s athletic and academic events attract thousands of visitors, generating hotel demand and boosting the city’s revenues. UGA’s sports teams, known as the “Bulldogs” or “Dawgs”, compete in National Collegiate Athletic Association (NCAA) Division I and the Southeastern Conference (SEC). Home football games frequently result in sold out hotels throughout the city. Additionally, hotel demand surges during events like move-in, parents’ weekend, graduation, alumni reunions, and more.

MARKET SUMMARY

University of Georgia, Sanford Stadium

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/ PREPARED BY HUNTER HOTEL ADVISORS /University of Georgia

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Attractions and TourismLike local demand generators and attractions, events are vitally important sources of hotel demand. Athens is a premier city for music, festivals, and other events. The University of Georgia’s sports schedule is an anchor of the city’s draws as fans and alumnae frequently return to Athens to cheer on the beloved Dawgs. In addition, UGA creates hotel demand during events like graduation, parents’ weekend, move-in, alumnae events, and more.

MARKET SUMMARY

Distance from Hotel

Event or Attraction Details

9.0 Indie South Fair Held twice a year at fairgrounds, this fair allows local vendors and artists to present wares directly to locals

9.5 Athens Twilight Criterium This event, in its 37th year, is a professional cycling event held at night in the Downtown area

9.5 Athfest Summer 2015 This popular annual fundraiser is family-friendly and features music, art, film, and fun

9.2 Georgia Theatre A prominent music venue in Athens that features a steady line-up of both up-and-coming local talent and famous acts

9.5 Downtown Parade of Lights County-wide celebration of Christmas with a parade, prizes, and entertainment

9.5 Wild Rumpus Spectacle Athen's annual Halloween Parade is a festive event in Downtown Athens for families and children

9.5 UGA International Street Festival 2016 will be the 18th year this festival is held to celebrate different cultures, international food, costume, dance, and music

9.5 Classic Center Theater Meetings, conventions, trade shows, weddings, parties, and theatre performances are held throughout the year at this expansive space

9.6 Holiday Spirits Museum Mile Tour The Athens Historic House Museum Association presents historic and festive tours throughout December

9.6 Classic City Brew Fest Voted one of the country’s top 10 beer festivals, there are 400 beers to sample and live music to enjoy

10.0 Terrapin Beer Company This incredibly popular brewery has regular parties and events including yoga, new release parties, fundraisers, music shows, and private events

6.0 Plantapalooza! Held in April, this is three simultaneous plant sales and festivals held at the State Botanical Garden, UGA's Horticulture Club, and the Trial Gardens at UGA

Athens Twilight Bike RideInternational Street Festival

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Five Points Five Points combines unique restaurants with distinctive local shops to create an exciting and inviting destination. The area is surrounded by beautiful Victorian-era buildings and 1920s and 1930s era homes. Retail outlets in the Five Points area feature the finest in fashion, gifts, jewelry, art and antiques. Five Points is also home to a variety of restaurants that have gained national recognition.

AthFestAthFest is a music and arts festival that has been held in downtown Athens for the past 15 years. The festival includes over 100 bands and artists performing on three outdoor stages in mid-June. It is also an opportunity to promote local and regional artists as well as area small businesses. Each year, AthFest attracts thousands of visitors to the city of Athens creating hotel demand and boosting the local economy.

MARKET SUMMARY

AthFest

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TransportationAthens Ben Epps Airport

• The Athens Ben Epps Airport is approximately three miles outside of downtown Athens

• The airport is served by SeaPort Airlines which provides daily flights to Nashville• There are an average of 104 aircraft operations daily, which is approximately 38,000

annually

Roads• Heavily traveled US Route 78 provides direct access to Athens from the East and

West• Located 20 miles from I-85 and 30 miles from I-20, Athens affords easy access to the

City of Atlanta and the Port of Savannah• Athens is easily accessible from US-441 and GA-216, and Hartsfield-Jackson

International Airport, the busiest in the world, is only 80 miles away

Rail• In operation since 2002, the Athens railroad is a north-south line running through

Athens• The northern end of the line is approximately seven miles north of Downtown Athens• CSX and Norfolk Southern provide freight service in and out of Athens, with lines

running directly to the Athena Industrial Park.

Bus• Athens Transit provides 18 bus routes daily, both loops and linear• Most routes terminate at the Athens Multi-Modal Transportation Center• UGA Campus Transit also provides free transit on the UGA campus, 24 hours a day• Megabus and Southeastern Stages, a subsidiary of Greyhound, provide alternative

bus services to other cities

Athens Multi-Modal Transportation Center• The Center was built on a brownfield, close to the North Oconee River, in 2006• It connects roads with rail and bus services, providing easy transportation connectivity• Won the 2007 Innovation Design in Engineering and Architecture award from the

American Institute of Steel Construction• Was designed to accommodate the theoretical construction of the “Brain Train”,

which is intended to run between Atlanta and Athens

MARKET SUMMARY

Athens Ben Epps Airport

UGA Campus Transit

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DISCLAIMERS AND DISCLOSURESBROKER DISCLAIMERThis confidential offering memorandum has been prepared by Hunter Hotel Advisors (“Broker”) in cooperation with the Seller, solely for the limited use of prospective purchasers. The offering memorandum is not intended to provide all the information necessary to reach a purchase decision. Each prospective purchaser is encouraged to do its own thorough review and gather and verify to its satisfaction all information about the property.

The undersigned understands and acknowledges that there is no representation or warranty as to accuracy or completeness of the information provided.

While the financial, operational, property description, projections and other information herein is compiled from sources believed to be reliable, neither Broker nor Owner guarantee, represent or warrant its accuracy or completeness. Because of the foregoing, and since the Property is being offered on an “As Is, Where Is” basis, Purchaser should use such information solely to facilitate his investigation and must make independent investigations, projections and conclusions regarding the acquisition of the Property without reliance on this offering memorandum. As to pro forma projections, these were prepared by Broker based on many assumptions and events over which owner and broker have no control and are not guaranteed. Buyers should use such projections for an initial review only and are urged to do their own study and projections before taking action relative to the Property.

No liability is assumed for errors and omissions, misstatements of facts, prior sale, change-of-price or withdrawal from the market without notice

AS IS, WHERE ISThis hotel is being offered “As Is, Where Is,” with all faults and limitations. Purchaser should do his own studies to properly understand what he will be buying.

EnVIROnMEnTAL ISSUESThe Seller and Broker specifically make no representations whatsoever about any environmental conditions on the property, including but not limited to issues such as asbestos, hazardous waste, mold and mildew, petroleum leaks or spills. Each prospective purchaser is encouraged to do his own study and analysis and determine to his own satisfaction the status of the various issues.

AMERICAnS WITH DISABILITIES ACTThe owner and broker make no representations regarding this property and this law. A buyer should consult knowledgeable experts and attorneys regarding these matters.

AGEnCyHunter Hotel Advisors, is the exclusive agent of the Seller, represents the Seller only and shall be compensated by Seller.

COnFIDEnTIALAll information contained in this offering is confidential in nature and must be held in the strictest confidence, except information which is a matter of public record. Duplication or reproduction of any of the contents of this document or other information provided to you by Broker about this property, without the express written permission of Broker, is prohibited.

RETURn OF InFORMATIOnThis memorandum is the property of Hunter Hotel Advisors, and is intended to be used only by such parties to whom Broker has delivered the memorandum or to whom Broker has approved such delivery. If, after review, you have no interest in purchasing the property at this time, KINDLY RETURN OR DESTROY THIS MEMORANDUM and all other information provided to you by Seller, Broker or others to Broker at your earliest convenience.

PROPERTy TOURS AnD InFORMATIOnPLEASE DO NOT VISIT THE HOTEL WITHOUT MAKING PRIOR ARRANGEMENTS THROUGH THE BROKER. Please do not contact management or hotel owner, nor talk to any employees. All due diligence information must be provided through Hunter Hotel Advisors and all property tours must be scheduled through Hunter Hotel Advisors. A Hunter representative must be present for all tours.

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ABOUT HUNTER

Hunter Hotel Advisors is the nation’s leading investment advisory firm focused exclusively on the hotel industry. Our seasoned team of investment professionals and offices nationwide consistently provide clients with optimal results in hotel brokerage, financial advisory and capital markets services of any size or complexity. With over 35 years of experience in full and select-service single assets and portfolios, the firm’s capacity in valuation, economic analysis, and industry relationships has allowed us to consistently maximize value regardless of market conditions.

Bob Hunter, [email protected]

Teague Hunter, [email protected]

Lee Hunter, [email protected]

Danny Givertz, Sr Vice [email protected]

Robert M. Taylor, Sr Vice [email protected]

Steve Taylor, Sr Vice [email protected]

Trey Scott, Vice [email protected]

Brown Kessler, Vice [email protected]

Marilyn Cox, Vice [email protected]

Mayank Patel, Vice [email protected]

Tim Osborne, Vice [email protected]

David Perrin, Vice [email protected]

Shamir Patel, Vice [email protected]

Brian C. Embree, Sr [email protected]

Jatin Patel, [email protected]

Daniel Riley, Sr [email protected]

Blair Revercomb, [email protected]

Capital MarketsStephen Gaylor, SVP Capital [email protected]

candlewood suites athens, georgia · 2017. 3. 15. · • consistent performance with upside...

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