brochure+ +americas+best+value+inn+-+lansing+mi
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Lansing, MI
C O N F I D E N T I A L O F F E R I N G B R O C H U R E
1100 Ramada Drive | Lansing, MI 48911
Mike [email protected]
James JohnsonChicago: 312.935.1019Santa Fe: [email protected]
CB Richard Ellis Hotels presents, for your consideration, the opportunity to acquire
the 100-room Americas Best Value Inn in Lansing, Michigan at a very affordable
price. The limited service hotel is located just south of downtown Lansing. The
one-story, exterior corridor hotel is situated on 2.9 acres along I-96, and within an
eight mile drive of the State Capitol, Michigan State University, Sparrow Hospital,
Jackson National Life Insurance, and General Motors.
LIstIng OffeReD By:
America’s Best Value Inn| Lansing, MI
Operating Performance
Year End 2009
12 Months Ending 4/30/09
Year End 2008
Year End2007
Occupancy 35.2% 35.8% 36.6% 38.4%
Average Daily Rate $42.29 $38.23 $38.77 $39.05
RevPAR $14.89 $13.72 $14.19 $15.00
Rooms Revenue $434,800 $501,460 $519,544 $547,547
Asset
yeAR BUILt
OwneRshIp InteRest
sIte AReA
pARkIng
nUMBeR Of UnIts
COnstRUCtIOn
MeetIng fACILItIes
CApItAL IMpROveMents
AMenItIes
fRAnChIse AgReeMent
Americas Best Value Inn
Originally built in 1980 as a Knights Inn. The property consists of four separate one-story buildings
Fee Simple
2.9 acres (±128,066 square feet)
On-site surface parking (133 spaces)
100 rooms and a two bedroom manager’s apartment
Wood construction with stucco exterior. The roofs of each building are wood trusses covered topped by asphalt shingles.
A large 600 sq. foot meeting/banquet room off the side of the lobby. It is currently used for storage Over the last three years improvements have included new carpet, drapes, furniture, sink, vanities, tile work, and air conditioners to the rooms. All four buildings have new roofs. Twenty rooms have been completely remodeled. New exterior signs and a PMS system have been added this year.
Continental breakfast and high speed wireless internet access in the lobby area. The outdoor pool is available from May to September. A guest laundry room. Each room includes a microwave and a minifridge.Franchise license agreement subject to annual renewal with Americas Best Value Inn
pROpeRty DetAILs
ALL REASONABLE OFFERS CONSIDERED!
InvestMent hIghLIghts
TransienT & Leisure DeManD The Americas Best Value Inn is well located to capture transient, leisure and SMERF demand due to its proximity to the area’s corporate and leisure attractions. Easy interstate access, adequate parking facilities, and great visibility positions the property to accommodate leisure and trucking demand. Nearby demand generators include the State Capitol, Michigan State University, Sparrow Hospital, Ingham County Regional Medical Center Jackson National Life Insurance, Cooley Law School, Lansing Community College, the Lansing Center, General Motors, and Oldsmobile Park. The State of Michigan government is the largest employer in Lansing, the capitol of the state. Michigan State University (MSU), located in East Lansing is one of the largest universities in the country with over 45,000 students. Additionally, MSU is regarded as one of the top research universities in the United States. Americas Best Value Inn offers travelers an affordable alternative to other hotels along I-96, yet comparable convenience in terms of access to local demand generators, food outlets, and interstate highway access.
HanDs On Owner/OperaTOrThis property is ideal for a hands on owner/operator who would live in the two-bedroom manager’s suite. An on-site owner would be able to reduce operating expenses such as payroll, increase gross room revenue, and enhance NOI for the property. Projections for a hands on owner/operator over the next four years are shown below:
upsiDe pOTenTiaL THrOugH renOvaTiOnGiven the property’s good location, a strong opportunity exists for new ownership to improve the operating performance. Renovation of the guest rooms, guest bathrooms, and common areas will enable the Americas Best Value Inn to compete more successfully with other economy class hotels in the market.
FrancHise TransFerThe Americas Best Value Inn franchise began in May 2009. Current ownership has negotiated a free transfer of franchise to a new buyer which includes no PIP, and features a year
to year contract. Additionally, franchise fees are limited to $1,500 per month. This franchise is ideal for a hands on owner/operator looking to have an affordable association with a nationally known brand and reservation system.
Projected Operating Performance
Year End2011
Year End2012
Year End 2013
Year End2014
Occupancy 40.0% 42.0% 44.0% 45.0%
Average Daily Rate $41.50 $44.00 $46.50 $48.75
RevPAR $16.60 $18.48 $20.46 $21.94
Rooms Revenue $605,900 $674,520 $748,836 $800,719
NOI $160,321 $203,986 $251,482 $283,327
LIstIng OffeReD By:
© 2009 CB Richard Ellis, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
The primary South Lansing competitors of the Americas Best Value Inn are listed in the chart on the right.
These hotels are typically charging $15 to $20 more per night then the Americas Best Value Inn. Closing the ADR gap is an opportunity for diligent management to increase revenue.
Despite decreases in occupancy, the Americas Best Value Inn has remained stable at an Average Daily Rate of $38 over the last three years. Local contractors and walk-in business find this pricing attractive. Following a renovation, with hands on yield management, the opportunity to increase occupancy and ADR is significant. The size of the property will allow them to accommodate lower priced extended stay business, while increasing rates on more desirable units.
hOteL MARket OveRvIew
Mike Horvath312.935.1022
Competitive Hotels
Hotel Rooms Year Opened
americas Best value inn 100 1980
Days Inn Lansing South 147 1967
Super 8 Lansing 42 1988
Causeway Bay 300 N/A
Red Roof Inn Lansing 81 1975
James JohnsonChicago: 312.935.1019Santa Fe: 505.986.5890