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Sunset Palm Hotel Davenport Florida Investment Overview

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Page 1: Sunset Palm Hotel Davenport Florida · 2020. 12. 15. · Epcotcenter.com Located off busy intersection of 1-4 & Hwy 27, on the path to LEGOLAND, and only 20-minute drive to Disney

Sunset Palm Hotel Davenport FloridaInvestment Overview

Page 2: Sunset Palm Hotel Davenport Florida · 2020. 12. 15. · Epcotcenter.com Located off busy intersection of 1-4 & Hwy 27, on the path to LEGOLAND, and only 20-minute drive to Disney

QUALITY INN HOTEL

Davenport - Florida

•Florida Hotel Development - Fastest growing Areas!

• Not only is Florida the third most populated state in

the USA after California and Texas, the states’economy ranks just as high. Florida’s state economyhit the $ 1 trillion mark in 2018, and is poised forcontinued growth in 2019.

• With the growth comes commercial development andreal estate investment increase. That will certainly bethe case in 2019 when the U.S. hotel industry isexpected to see a 10th consecutive year of growth,according to research by CBRE Hotels, a research andadvisory firm.

•Most important, there are areas that will see evenmore demand and Florida is one of the top on that list.

•Ft. Lauderdale, Tampa Bay and Orlando.

•When it comes to hotel markets in Florida, it’s hard tobeat the Orlando region. In June 2018, Orlando’s hotelnumbers grew faster than any U.S. market in the threekey metrics, including occupancy rate, cost or roomand room revenue.

Page 3: Sunset Palm Hotel Davenport Florida · 2020. 12. 15. · Epcotcenter.com Located off busy intersection of 1-4 & Hwy 27, on the path to LEGOLAND, and only 20-minute drive to Disney

Epcotcenter.com

Located off busy intersection of 1-4 & Hwy 27, on the path to

LEGOLAND, and only 20-minute drive to Disney World,

Orlando.The property is situated on 5 AC of land

44199 Highway 27 N – Quality Inn Davenport, Florida

67,518 SF or $ 62 per SF or $ 28,000 per Room, with 150 rooms,

one conference room and office center.

Disney World.com Legoland.com

CHECK OUT THE LINKS BELOW TO EXPLORE THE NEIGHBORHOOD!

Page 4: Sunset Palm Hotel Davenport Florida · 2020. 12. 15. · Epcotcenter.com Located off busy intersection of 1-4 & Hwy 27, on the path to LEGOLAND, and only 20-minute drive to Disney

LOCATION, LOCATION, LOCATION

Located on 5 AC of land, Zoning C3, direct on main Highway 27 N in Davenport, Florida, on Exit 55 of Interstate 4 between Tampa and Orlando.

Downtown Orlando is an escape from the tourism. Here you Will find popular nightclubs and restaurants. Enjoynightlife on Church Street or experience multiple bars onone venue at the Wall Street Plaza. Whatever flavor youare looking for , you Will find it Downtonw.Plenty ofrestaurants are located in the business district.

Ideal located with 35 miles to Orlando and 55 miles to Tampa, Davenport Florida benefits from traffic between the two metropolitan areas. Hotel occupancy rates have steadily risen and will continue to climb. Direct on Highway 19 and I-4.

20.8 million visitors. Magic Kingdom at Disney World in Florida was the world’s most visited them e park in 2018, with a whopping 20.8 million visitors, according to an annual report released by Themed Entertainment Association.

DOWNTOWN ORLANDO QUALITY INN - DAVENPORT DISNEY WORLD VISITORS

Page 5: Sunset Palm Hotel Davenport Florida · 2020. 12. 15. · Epcotcenter.com Located off busy intersection of 1-4 & Hwy 27, on the path to LEGOLAND, and only 20-minute drive to Disney

Investment Overview

About 44199 Highway 27 N Davenport, Florida

QUALITY INN – DAVENPORT, FLORIDA

• 150 room Hotel

• Purchase Price $ 4,200,000.

• 67,518 SF Building Size - $ 62 per SF, $ 28,000/room !

• At $ 200 per SF, replacement value $ 13,400,000.

• Conference Room

• Office Center

• Breakfast Room

• Gross Income 2018 $ 1,173,000

• Average Room Rate $ 68.00

• 5 AC of future additional land development

• Travelers accommodations to Disney World, Universal Studios, Lego Land, Sea World, Epcot Center and others

Page 6: Sunset Palm Hotel Davenport Florida · 2020. 12. 15. · Epcotcenter.com Located off busy intersection of 1-4 & Hwy 27, on the path to LEGOLAND, and only 20-minute drive to Disney

40 Limited Partnership units @ (US) $25,000.00. The General

Partner will hold 1 LP unit, with 39 units to be sold to qualified

Limited Partners.

Our Limited Partnership will continue to operate the present

hotel and offer Hotel Condominiums for sale to maximize

occupancy and profitability.

Limited Partnership Offer

RETURN

LIMITED PARTNERSHIP

PROFIT

USE

Page 7: Sunset Palm Hotel Davenport Florida · 2020. 12. 15. · Epcotcenter.com Located off busy intersection of 1-4 & Hwy 27, on the path to LEGOLAND, and only 20-minute drive to Disney

• 50 rooms off-line, renovation and upgrade

• Improve landscaping, swimming pool area

• Enlarge Breakfast area to Restaurant/Bar

• Architect, Engineering

• Outside lightning, Marketing signs

• Closing Cost and Finance charges

• Capital Reserves

Total Investment Required

USE OF FUNDS

USE OF FUNDS

RETURN

LIMITED PARTNERSHIP $350,000

$150,000

$250,000

$50,000

$ 75,000

$ 60,000

$ 65,000

$1,000,000

PROFIT

Page 8: Sunset Palm Hotel Davenport Florida · 2020. 12. 15. · Epcotcenter.com Located off busy intersection of 1-4 & Hwy 27, on the path to LEGOLAND, and only 20-minute drive to Disney

LIMITED PARTNERSHIP

PROFIT DISTRIBUTION

RETURN

• The property was appraised in March 2018 with only 100 rooms online

for (US) $4,770,000, not considering 50 rooms presently out of order.

• The market value after completion of renovation with 150 rooms online

will be US $7,500,000.

• The value $ 7,500,000 does not include the Commercial Spaces, Business

Center, Conference Room, Restaurant and Bar valued at $ 1,500,000.

• The Hotel rooms are offered as condominiums with sales price average

at $ 80,000 or for a total of $ 12,000,000.

PROFIT DISTRIBUTION

USE

Page 9: Sunset Palm Hotel Davenport Florida · 2020. 12. 15. · Epcotcenter.com Located off busy intersection of 1-4 & Hwy 27, on the path to LEGOLAND, and only 20-minute drive to Disney

PROFIT

LIMITED PARTNERSHIP

USE

INVESTMENT RETURN

Sales Price of Hotel Condominiums

Investment for general Improvements

Upgrade 150 hotel rooms, shower vs bathtub

Purchase Price of Hotel

Marketing Cost 10%

Profit

INVESTMENT RETURN

$12,000,000

($1,000,000)

( 900,000)

($4,200,000)

($1,200,000)

$4,700,000

With sale price of $12,000,000 for Hotel Condominiums, our investors will receive:

50% will be paid to investors, therefore $ 2,350,000 / 39 = Each Limited Partnership unit of $ 25,000 will return a total of $ 60,250.00

Page 10: Sunset Palm Hotel Davenport Florida · 2020. 12. 15. · Epcotcenter.com Located off busy intersection of 1-4 & Hwy 27, on the path to LEGOLAND, and only 20-minute drive to Disney

2019 SOUTHEAST U.S. REAL ESTATE MARKET OUTLOOK

Orlando, largest hotel market in the region, seeing significant development activity

Since 2013, Orlando has benefited from supply growth of only 1.0%, while experiencing one of the highest rates of demand growth in the nation at 3.7%. This helped the market tie its highest occupancy level ever of 79.2% in 2017, matching the record set in 1996. Upper-priced hotels hit their highest level ever, with 2017 occupancy reaching 81.8%.

The Orlando pipeline of properties scheduled to open by 2020 shows 46 hotels with a total of 11,041 rooms. Universal Orlando Resort’s International Drive hotel project, also known as Project 370, consists of two hotels with a total of 2,800 rooms. Both are scheduled to open by February 2019. The Great Wolf Lodge Orlando, also in the International Drive submarket, will also open in 2019, with 800 rooms.

In the last year, 29 properties consisting of 2,810 rooms in the Orlando market were sold for a total price of $392.6 million, compared to 22 sales for a total of $434.2 million in the previous period. The $48.5 million paid for the combined 254-unit Springhill Suites and Residence Inn Orlando At Millenia was the highest value deal, followed by the 137-room Hilton Garden Inn Lake Buena Vista for $42.0 million.

CURRENT CONDITIONS CONSTRUCTION ACTIVITY INVESTMENT ACTIVITY

ORLANDO

Gone for now are the days of very low supply growth in the Orlando market. With an average expected supply growth of 2.6% through 2022, the high occupancy levels are expected to diminish starting in 2019, while new demand growth is expected to slow down.

OUTLOOK

Page 11: Sunset Palm Hotel Davenport Florida · 2020. 12. 15. · Epcotcenter.com Located off busy intersection of 1-4 & Hwy 27, on the path to LEGOLAND, and only 20-minute drive to Disney

QUALITY INN DAVENPORT FINAL SURVEY

Page 12: Sunset Palm Hotel Davenport Florida · 2020. 12. 15. · Epcotcenter.com Located off busy intersection of 1-4 & Hwy 27, on the path to LEGOLAND, and only 20-minute drive to Disney

Monthly STAR Report - QUALITY INN DAVENPORT

Page 13: Sunset Palm Hotel Davenport Florida · 2020. 12. 15. · Epcotcenter.com Located off busy intersection of 1-4 & Hwy 27, on the path to LEGOLAND, and only 20-minute drive to Disney

Monthly STAR Report - QUALITY INN DAVENPORT

Page 14: Sunset Palm Hotel Davenport Florida · 2020. 12. 15. · Epcotcenter.com Located off busy intersection of 1-4 & Hwy 27, on the path to LEGOLAND, and only 20-minute drive to Disney

Monthly STAR Report - QUALITY INN DAVENPORT

Page 15: Sunset Palm Hotel Davenport Florida · 2020. 12. 15. · Epcotcenter.com Located off busy intersection of 1-4 & Hwy 27, on the path to LEGOLAND, and only 20-minute drive to Disney

Monthly STAR Report - QUALITY INN DAVENPORT

Page 16: Sunset Palm Hotel Davenport Florida · 2020. 12. 15. · Epcotcenter.com Located off busy intersection of 1-4 & Hwy 27, on the path to LEGOLAND, and only 20-minute drive to Disney

Monthly STAR Report - QUALITY INN DAVENPORT

Page 17: Sunset Palm Hotel Davenport Florida · 2020. 12. 15. · Epcotcenter.com Located off busy intersection of 1-4 & Hwy 27, on the path to LEGOLAND, and only 20-minute drive to Disney

Quality Inn – Davenport Florida

150 Hotel Rooms purchased @ $ 28,000

Page 18: Sunset Palm Hotel Davenport Florida · 2020. 12. 15. · Epcotcenter.com Located off busy intersection of 1-4 & Hwy 27, on the path to LEGOLAND, and only 20-minute drive to Disney

Quality Inn Davenport Florida

Conference Room Hotel Lobby Breakfast Room

Page 19: Sunset Palm Hotel Davenport Florida · 2020. 12. 15. · Epcotcenter.com Located off busy intersection of 1-4 & Hwy 27, on the path to LEGOLAND, and only 20-minute drive to Disney

ASSISTANT LIVING FACILITY

There is high demand for Assistant Living Facilities not only in the Orlando Florida area, but all over the USA.

The high demand is accompanied by a great shortage in the marketplace.

The Hotel Condominiums we offer will have as alternative in “PHASE ONE”, one block of 50 hotel rooms to be

used in our Assistant Living Program.

Future expansion to transform the entire property with 150 rooms to an ALF is in planning.

MARKET OVERVIEW

A look at the marketplace and the cost for monthly housing and real estate, makes clear that an ALF is the way

to go.

In Orange, CA an ALF is offered at $ 1,995,000 for a facility with 3,161 SF , 6 Beds or $ 630 per SF or $ 332,500

per Bed. In Simi Valley, CA an ALF with 48,437 SF is offered at $ 25,950,000 with 105 Beds or $ 535 per SF or $

247,000 per Bed.

Closer to Florida and our Property in Davenport, in Wellington an ALF with 10,476 SF is offered for $ 15,732,000

with 42 Beds or $ 1,502 per SF or $ 374,000 per Bed. In Gainesville, FL an ALF with 7,000 SF is offered for $

1,150,000 with 15 Beds or $ 164 per SF and $ 76,667 per Bed.

It must be pointed out that none of these facilities has a swimming pool and any of the activity areas we have to

offer. In addition, the proximity to Disney World and other theme parks including Disney’s City “Celebration”

are aspects that will make The Quality Inn Hotel the perfect place for a future ALF.

Page 20: Sunset Palm Hotel Davenport Florida · 2020. 12. 15. · Epcotcenter.com Located off busy intersection of 1-4 & Hwy 27, on the path to LEGOLAND, and only 20-minute drive to Disney
Page 21: Sunset Palm Hotel Davenport Florida · 2020. 12. 15. · Epcotcenter.com Located off busy intersection of 1-4 & Hwy 27, on the path to LEGOLAND, and only 20-minute drive to Disney

This presentation contains “forward-looking statements” within the meaning of the Private SecuritiesLitigation Reform Act of 1995. These forward-looking statements include statements relating toanticipated financial performance, business prospects, new developments, pending transactions andsimilar matters, and/or statements that use words such as "anticipates," "estimates," "expects,""intends," "believes“, “projects” and similar expressions. These forward-looking statements areestimates reflecting the best judgment of senior management and involve an number of risks anduncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Other unknown or unpredictable factors also could have material adverse effectson Davenport QI LP’s future results, performance or achievements. In light of these risks anduncertainties, the forward-looking events discussed in this presentation may not occur. You arecautioned not to place undue reliance on these forward-looking statements, which speak only as ofthe date stated, or if no date is stated, as of the date of this presentation. Davenport QI LP is notunder any obligation and does not intend to make publicly available any update or other revisions toany of the forward-looking statements contained in this presentation to reflect circumstances existingafter the date of this presentation or to reflect the occurrence of future events even if experience orfuture events make it clear that any expected results expressed or implied by those forward-lookingstatements will not be realized.

SAFE HARBOR STATEMENT

Page 22: Sunset Palm Hotel Davenport Florida · 2020. 12. 15. · Epcotcenter.com Located off busy intersection of 1-4 & Hwy 27, on the path to LEGOLAND, and only 20-minute drive to Disney

CONTACTINFORMATION

715 East Bird Street 3118 Gulf to Bay BlvdTampa, FL 33604 Clearwater, FL 33759

WB REAL ESTATE DEVELOPMENT, LLC

+(832)537-3040 [email protected]