TICONDEROGA, NEW YORK - LoopNet · 2018. 2. 9. · Western Plus Ticonderoga Inn & Suites, a...

OFFERING

MEMORANDUM

Presented by:

BEST WESTERN PLUS TICONDEROGA INN & SUITESTICONDEROGA, NEW YORK

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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

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

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

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.

CONFIDENTIALITY AND DISCLAIMER

NON-ENDORSEMENT NOTICE

Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any com-mercial 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.

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

best western plus ticonderoga inn & suites

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

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

COMPETITIVE PROPERTY SET

Competitve Properties 18

MARKET OVERVIEWMarket Overview 20Demographic Summary 21

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

EXECUTIVE SUMMARY

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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. © 2017 Marcus & Millichap ACT ID #Y0330658

260 BURGOYNE ROAD, TICONDEROGA, NEW YORK 12883W

ANNUALIZED OPERATING DATA

INCOME 2016 % OF GR PRO FORMA % OF GR

Room Revenue $1,578,210 78.0% $1,609,932 78.0%

Other Revenue $444,522 22.0% $453,457 22.0%

Gross Revenue $2,022,732 100.0% $2,063,389 100.0%

Total Expenses $1,500,416 74.2% $1,562,541 75.7%

Net Operating Income $522,316 25.8% $500,848 24.3%

OFFERING SUMMARY

Proposed Price $4,900,000

Down Payment $1,225,000 / 25%

Total Number of Rooms 54

Occupancy 55.5%

ADR $144.32

RevPAR $80.07

Franchise Parent Company Best Western Hotels & Resorts

Franchise Affiliation Best Western Plus Inn & Suites

Year Built 2008

Number of Stories 2

Type of Ownership Fee Simple

VITAL DATA

Cap Rate 10.7%

CAP Rate - Pro Forma 10.2%

Room Revenue Multiplier 3.1

Room Revenue Multiplier- Pro Forma 3.0

5 - Year IRR 32.2%

Price/Room $90,741

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EXECUTIVE SUMMARY best western plus ticonderoga inn & suites


Marcus & Millichap has been chosen to exclusively market for sale the Best Western Plus Ticonderoga Inn & Suites, a two-story 54-room hotel located less than two miles from historic Fort Ticonderoga The hotel is located approximately 53 miles from Burlington International Airport Amenities include: complimentary WiFi, business center, cocktail lounge, coffee shop, executive floor, fitness center, pool, and meeting rooms Guest rooms offer a 32-inch flat screen television, microwave, desk, coffee and teamaker, hair dryer, iron and ironing board Select rooms feature a mountain view

FranchiseBest Western Hotels & Resorts is a leader in hospitality with a global network of over 4,100 hotels in over 100 countries and territories In 2014 and 2015 Business Travel News named Best Western Plus hotels the Number 1 Upper Midprice Hotel Brand

More than 26 million travelers are members of the brand's award-winning loyalty program Best Western Rewards®; named one of the top three hotel loyalty programs by U S News & World Report for three consecutive years AAA has recognized Best Western as Partner of the Year for seven years in a row

Investment Overview

Investment SummaryThe Best Western Plus Ticonderoga 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 53 Miles from Burlington International Airport

and 79 Miles from Albany International Airport

Proximity to Area Attractions - Fort Ticonderoga, Otter Creek, Middlebury College, Strand Theater, Mount Marcy, Castleton University, Shelving Rock Falls, Paramount Theater, Norman Rockwell Museum, Rutland Regional Medical Center

EXECUTIVE SUMMARY

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Interest Offered

Fee simple interest in Best Western Plus Ticonderoga Inn & Suites, a 54-room hotel, located at 260 Burgoyne Road, Ticonderoga, New York 12883

Summary of Terms

Proposed Financing

FINANCING

Loan Amount $3,675,000

Loan Type Proposed New

Interest Rate 5.50%

Amortization 25 years

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

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

Terms of the Sale

The Best Western Plus Ticonderoga Inn & Suites is offered at $4,900,000 based on a capitalization rate of 10 7 percent Historic operating documentation and third party reports may be found in the online document data portal

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

PROPERTY DESCRIPTION best western plus ticonderoga inn & suites

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. © 2017 Marcus & Millichap ACT ID #Y0330658

Features and Amenities

COMMON AREA FEATURES

ROOM AMENITIES

BEST WESTERN PLUS TICONDEROGA INN & SUITES260 Burgoyne Road Ticonderoga, New York 12883

Fitness Center

Complimentary WiFi

Banquet Rooms

On-site Restaurant

Complimentary Breakfast

Cocktail Lounge / Burgoyne Grill

Indoor Heated Pool

Hot Tub

Fitness Center

Laundry Facility

Business Center

Conference Space

Wedding Services

Four Meeting Rooms

Elevator

Complimentary Parking

32-Inch Flat Screen Television

Premium Cable Channels

Desk / Work Area

Hair Dryer

Iron / Ironing Board

Coffee / Tea Maker

Complimentary WiFi

Mini-bar

Telephone

Refrigerator

Microwave

Alarm Clock

Telephone

Radio

Room Service

PROPERTY DESCRIPTION

7



Local Map Regional Map

PROPERTY DESCRIPTION best western plus ticonderoga inn & suites


Area AttractionsAREA ATTRACTIONS DISTANCE

LaChute River Walk Trail 0.7 Mile

Star Trek Original Series Set Tour 0.7 Mile

Ticonderoga Heritage Museum & Visitor Center 0.9 Mile

Ticonderoga Historical Society 1.3 Miles

Ticonderoga Station 1.9 Miles

Corn Maze 2.4 Miles

Ticonderoga Country Club 3.0 Miles

Fort Ticonderoga 3.6 Miles

Gunnison Lakeshore Orchards 8.3 Miles

Crown Point State Historic Site 13.8 Miles

Otter Creek 14.8 Miles

Middlebury College 16.3 Miles

Strand Theater 16.7 Miles

Mount Marcy 17.6 Miles

Castleton University 21.2 Miles

Shelving Rock Falls 24.2 Miles

Paramount Theater 28.8 Miles

Norman Rockwell Museum 28.2 Miles

Rutland Regional Medical Center 29.5 Miles

MAJOR EMPLOYERS IN MARKET

COMPANY LOCAL EMPLOYEES

International Paper 650

Walmart 300

Inter-Lakes Health Inc. 260

Moses-Ludington Hospital 170

Lowes 158

Fort Ticonderoga Museum 84

Ticonderoga Elementary School 65

Moses-Ludington Nursing Home Inc. 60

McDonalds 59

Sentinel Pine Orchards Inc. 55

Ticonderoga High School 55

Ticonderoga Middle School 55

Otter Creek

LaChute River Walk Trail

PROPERTY DESCRIPTION

9



Area Attractions

Star Trek Original Series Set Tour Castleton University

Gunnison Lakeshore OrchardsMount Marcy

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


12

FINANCIAL ANALYSIS


Market Trend

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best western plus ticonderoga inn & suitesFINANCIAL ANALYSIS


RevPAR Comparison


14

FINANCIAL ANALYSIS


Profit and Loss Summary

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best western plus ticonderoga inn & suitesFINANCIAL 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

*Best Western Plus Ticonderoga Inn & Suites

Ticonderoga, NY 12883 2008 54

1 Quality Inn On Lake Placid Lake Placid, NY 12946 1976 89

2 Super 8 Ticonderoga Ticonderoga, NY 12883 1990 39

3 Courtyard Middlebury Middlebury, VT 05753 2003 88

4 Hampton Inn Suites Lake George Lake George, NY 12845 2006 93

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

MARKET OVERVIEW best western plus ticonderoga inn & suites


Demographic Summary

POPULATION 1 MILE 3 MILES 5 MILES

2000 Population 1,986 4,117 5,291

2010 Population 1,958 4,024 5,195

2014 Population 1,906 3,926 5,084

2019 Population 1,908 3,973 5,157

INCOME

$0-$14,999 10 3% 10 8% 10 8%

$15,000-$24,999 22 5% 19 4% 17 0%

$25,000-$34,999 14 8% 14 1% 14 0%

$35,000-$49,000 14 8% 15 0% 14 9%

$50,000-$74,000 17 6% 19 4% 21 2%

$75,000-$99,000 9 2% 8 0% 8 4%

$100,000-$124,999 5 5% 6 7% 7 1%

$125,000-$149,000 2 9% 3 8% 3 5%

$150,000-$199,000 0 5% 1 1% 1 4%

$200,000-$249,000 0 7% 0 6% 0 6%

$250,000 + 1 4% 1 2% 1 2%

2014 Median Household Income $36,931 $40,175 $43,565

2014 Per Capita Income $21,626 $22,168 $24,583$76,072 $62,627 $55,957

2014 Average Household Income $55,325 $57,275 $59,026

HOUSEHOLDS 1 MILE 3 MILES 5 MILES

2000 Households 739 1,500 2,065

2010 Households 754 1,547 2,151

2014 Households 729 1,502 2,097

2019 Households 733 1,530 2,149

2014 Average Household Size 2 43 2 38 2 38

2000 Owner Occupied Housing Units 59 94% 56 52% 56 81%

2000 Renter Occupied Housing Units 26 01% 24 31% 21 40%

2000 Vacant 14 05% 19 17% 21 78%



2014 Vacant 19 06% 26 57% 29 25%



2019 Vacant 19 86% 27 86% 30 55%

MARKET OVERVIEW

21



PopulationIn 2014, the population in your selected geography is 5,083 The population has changed by -3 92% since 2000 It is estimated that the population in your area will be 5,157 five years from now, which represents a change of 1 44% from the current year The current population is 49 50% male and 50 49% female The median age of the population in your area is 45 1, compare this to the Entire US average which is 37 3 The population density in your area is 64 57 people per square mile

Households

There are currently 2,097 households in your selected geography The number of house-holds has changed by 1 57% since 2000 It is estimated that the number of households in your area will be 2,149 five years from now, which represents a change of 2 49% from the current year The average household size in your area is 2 38 persons

Income

In 2014, the median household income for your selected geography is $43,564, compare this to the Entire US average which is currently $51,972 The median household income for your area has changed by 26 23% since 2000 It is estimated that the median household income in your area will be $50,572 five years from now, which represents a change of 16 08% from the current year

The current year per capita income in your area is $24,583, compare this to the Entire US average, which is $28,599 The current year average household income in your area is $59,025, 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: 96 70% White, 0 45% Black, 0 01% Native American and 1 09% 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 1 09% of the current year population in your selected area Compare this to the Entire US average of 17 13%

Housing

In 2000, there were 1,499 owner occupied housing units in your area and there were 564 renter occupied housing units in your area The median rent at the time was $399

Employment

In 2014, there are 2,237 employees in your selected area, this is also known as the daytime population The 2000 Census revealed that 46 16% of employees are employed in white-collar occupations in this geography, and 53 87% are employed in blue-collar occupations In 2014, unemployment in this area is 10 28% In 2000, the average time traveled to work was 17 9 minutes

Shelving Rock Falls

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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

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

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

TICONDEROGA, NEW YORK - LoopNet · 2018. 2. 9. · Western Plus Ticonderoga Inn & Suites, a...

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