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TRANSCRIPT
DAYS INN
STURBRIDGE
OFFERING MEMORANDUM
NON-ENDORSEMENT & DISCLAIMER NOTICE
CONFIDENTIALITY & DISCLAIMERThe information contained in the following Marketing Brochure 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 Marketing
Brochure 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 investi-
gation, 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 is a service mark of Marcus & Millichap Real
Estate Investment Services, Inc.
© 2018 Marcus & Millichap. All rights reserved.
NON-ENDORSEMENT NOTICEMarcus & Millichap 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 in-
dicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap,
its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap,
and is solely included for the purpose of providing tenant lessee information about this listing to prospec-
tive customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
JERRY SWONFirst Vice President Investments
National Hospitality GroupManhattan Office
Office 212.430.5219 Cell 908.625.6934
[email protected] NY 10401248594
NJ 0999581
TIM MCCAFFREYAssociate
National Hospitality GroupManhattan Office
Office 212.430.5197 Cell 516.510.3075
[email protected] NY 10401278221
EXCLUSIVELY LISTED BY
O F F I C E S N A T I O N W I D E A N D T H R O U G H O U T C A N A D A
WWW.MARCUSMILLICHAP.COM
DAYS INNSTURBRIDGE
400 ROUTE 15
STURBRIDGE, MASSACHUSETTS 01566
01 EXECUTIVE SUMMARYOffering Summary • Vital Data • Annualized Operating Data •
Executive Summary • Investment Overview • Summary Of Terms
TABLE OF CONTENTS
EXCLUSIVELY LISTED BY
07 PROPERTY DESCRIPTIONSite Map • Features / Amenities • Local / Regional Map • Area Attractions
13 FINANCIAL OVERVIEWMarket Trend • RevPAR Comparison • Profit & Loss Summary • Five-Year Cash Flow Pro Forma • Five-Year IRR
22 COMPETITVE PROPERTY SET Competitve Properties Map • Competitve Properties
25 MARKET OVERVIEWDemographic Summary • Market Overview
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, as-sumptions 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 Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACT ID Z0331595
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EXECUTIVESUMMARY
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400 ROUTE 15STURBRIDGE, MASSACHUSETTS 01566
VITAL DATA
Cap Rate 12.3%
Cap Rate - Pro Forma 11.2%
Room Revenue Multiplier 3.2
Room Revenue Multiplier- Pro Forma 3.2
Price/Room $56,173
OFFERING SUMMARY
Purchase Price $4,550,000
Down Payment $1,137,500 / 25%
Total Number of Rooms 81
Occupancy 69.7%
ADR $68.64
RevPAR $47.87
Year Built 2001
Number of Stories 3
Type of Ownership Land Lease at No Cost
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ANNUALIZED OPERATINGDATA
ANNUALIZED OPERATING DATA
INCOME 2017 % OF GR PRO FORMA % OF GR
Room Revenue $1,415,215 100.0% $1,443,660 100.0%
Gross Revenue $1,415,215 100.0% $1,443,660 100.0%
Total Expenses $857,175 60.6% $935,496 64.8%
Net Operating Income $558,040 39.4% $508,164 35.2%
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INVESTMENT OVERVIEW
Marcus & Millichap has been chosen to exclusively market for sale the Days Inn Sturbridge, a three-story 81-room hotel conveniently located on Route 15. The hotel is approximately 20 miles from Worchester Regional Airport. Amenities include: fitness center, complimentary WiFi, picnic area, laundry facility, elevator, complimentary breakfast, and outdoor pool. Guest rooms feature a television, desk, microwave, refrigerator, telephone, daily housekeeping, iron and ironing board, hair dryer, and coffee maker.
INVESTMENT SUMMARYThe Days Inn Sturbridge 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.
INTEREST OFFEREDThe Days Inn Sturbridge, an 81-room hotel located at 400 Route 15, Sturbridge, Massachusetts 01566 is offered on a 99-year land lease at no cost (operator pays utilities).
FRANCHISEWyndham Hotels & Resorts is the world’s largest and most diverse hotel company with over 7,800 properties and 678,000 rooms in 72 countries. With highly recognizable brands and hotel choices in every category from upscale to economy, Wyndham offers many lodging choices around the world. Days Inn is a leading global brand in the economy segment with more guest rooms than any other economy brand in the world with over 1,850 properties worldwide.
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INVESTMENT HIGHLIGHTS
► Located Approximately 20 Miles from Worchester Regional Airport
► Proximity to Area Attractions - Old Sturbridge Village, Roseland Park Golf Course, Roseland Cottage, Clark University, Worchester Polytechnic Institute, Thompson Speedway Motorsports Park, Fitton Field, Little River Plaza Shopping Center, Harrisville Gold Course, Volleyball Hall of Fame
TERMS OF SALEThe Days Inn Sturbridge is offered at $4,550,000 based on a capitalization rate of 12.3 percent. Historic operating documentation and third party reports may be found in the online document data portal.
PROPERTY TOURSProspective 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.
PROPOSED FINANCING
FINANCING
Loan Amount $3,412,500
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.
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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, as-sumptions 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 Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACT ID Z0331595
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PROPERTY DESCRIPTION
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FEATURES AND
AMENITIES
► Complimentary WiFi
► Fitness Center
► Laundry Facility
► Complimentary Breakfast
► Complimentary Parking
► Complimentary Newspaper
► Fireplace
► Picnic Area
► Outdoor Pool
► Elevator
► Pet Friendly
COMMON AREA FEATURES
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► Complimentary WiFi
► Television
► Premium Television Channels
► Coffee / Tea Maker
► Microwave
► Refrigerator
► Iron / Ironing Board
► Hair Dryer
► Desk
► Daily Housekeeping
► Telephone
GUEST ROOM AMENITIES
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MAPPING
LOCAL MAP REGIONAL MAP
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AREA ATTRACTIONSAREA ATTRACTIONS DISTANCE
Old Sturbridge Village 3.8 Miles
Tinkerville Brook Preserve 13.5 Miles
Roseland Cottage 15.0 Miles
Roseland Park Gold Course 15.9 Miles
Little River Plaza Shopping Center 17.7 Miles
Harrisville Golf Course 18.4 Miles
Auburn Mall 19.0 Miles
Thompson Speedway Motorsports Park 19.9 Miles
Fitton Football Stadium 22.4 Miles
College of the Holy Cross 22.5 Miles
Fitton Baseball Field 22.6 Miles
Clark University 23.5 Miles
Worcester Polytechnic Institute 25.1 Miles
Volleyball Hall of Fame 38.6 Miles
COMPANY LOCAL EMPLOYEES
UMass Memorial Hospitals Inc. 9,577
University Massachusetts Inc. 8,974
Office Sponsored Programs 4,469
Canterbury Towers 3,900
Mass Mutual 3,500
Adult Endocrinology Department 3,020
Walk to Cure Cancer 3,020
Saint-Gobain 3,000
US Department of Air Force 3,000
Walmart 2,641
MAJOR EMPLOYERS IN MARKET
Fitton Baseball FieldRoseland Cottage Worchester Polytechnic Institute
Clark University
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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, as-sumptions 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 Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACT ID Z0331595
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FINANCIALANALYSIS
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MARKET TREND
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REVPAR COMPARISON
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PROFIT AND LOSS SUMMARY
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5-YEAR CASH FLOW PRO FORMA
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5-YEAR IRR
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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, as-sumptions 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 Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACT ID Z0331595
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, as-sumptions 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 Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACT ID Z0331595
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COMPETITIVE PROPERTY SET
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COMPETITIVE PROPERTY SET
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Hotel City, State Zip Rooms Open
Days Inn Sturbridge Sturbridge, MA 01566 81 2001
1 Comfort Inn & Suites Colonial Sturbridge Sturbridge, MA 01566 77 1963
2 Super 8 Sturbridge Sturbridge, MA 01566 55 1967
3 Econo Lodge Sturbridge Sturbridge, MA 01566 53 1972
4 Economy Lodge Sturbridge, MA 01518 48 1940
5 La Quinta Inns & Suites Sturbridge Sturbridge, MA 01518 61 1988
1
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5
3
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, as-sumptions 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 Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACT ID Z0331595
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WMARKET OVERVIEW
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DEMOGRAPHICS HIGHLIGHTS
27,597
$60,755 $244,897
POPULATION STATISTIC
INCOME STATISTIC HOUSING STATISTIC
EMPLOYMENT BY INDUSTRIES
III
POPULATION 5 MILES 10 MILES 25 MILES
2022 ProjectionTotal Population
28,301 71,948 995,231
2018 EstimateTotal Population
27,597 69,403 973,791
2010 CensusTotal Population
27,091 68,382 959,627
2000 CensusTotal Population
25,576 63,786 905,818
Daytime PopulationsTotal Population
25,619 54,753 933,404
HOUSEHOLDS 5 MILES 10 MILES 25 MILES
2022 ProjectionTotal Households
11,421 28,427 379,116
2018 EstimateTotal Households
11,024 27,112 366,406
Average (Mean) Household Size 2.47 2.52 2.51
2010 CensusTotal Households
10,782 26,614 360,741
2000 CensusTotal Households
10,147 24,349 340,579
HOUSING UNITS 5 MILES 10 MILES 25 MILES
Occupied Units
2021 Projection 11,421 28,427 379,116
2016 Estimate 12,065 29,485 388,724
HOUSEHOLDS BY INCOME 5 MILES 10 MILES 25 MILES
2018 Estimate
$200,000 or More 4.30% 4.60% 5.07%
$150,000 - $199,000 6.85% 7.17% 6.57%
$100,000 - $149,000 15.76% 18.43% 16.49%
$75,000 - $99,999 13.31% 14.45% 13.70%
$50,000 - $74,999 17.49% 18.68% 17.42%
$35,000 - $49,999 11.92% 11.10% 11.11%
$25,000 - $34,999 9.08% 8.26% 8.33%
$15,000 - $24,999 10.56% 9.06% 9.35%
Under - $15,000 10.73% 8.26% 11.97%
Average Household Income $80,718 $86,025 $84,373
Median Household Income $60,755 $66,945 $62,681
Per Capita Income $32,355 $33,818 $32,374
POPULATION PROFILE 5 MILES 10 MILES 25 MILES
Population 25+ by Education Level
2016 Estimate Population Age 25+ 19,239 48,769 652,007
Elementary (0-8) 4.30% 2.82% 3.29%
Some High School (9-11) 7.71% 7.41% 7.47%
High School Graduate (12) 31.56% 32.61% 30.26%
Some College (13-15) 18.44% 18.84% 18.08%
Associate Degree Only 10.19% 10.61% 8.89%
Bachelors Degree Only 17.48% 18.33% 18.43%
Graduate Degree 8.89% 8.61% 12.34%
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JERRY SWONFirst Vice President InvestmentsNational Hospitality GroupManhattan OfficeOffice 212.430.5219 Cell [email protected] NY 10401248594 | NJ 0999581
TIM MCCAFFREYAssociateNational Hospitality GroupManhattan OfficeOffice 212.430.5197 Cell [email protected] NY 10401278221
E X C L U S I V E LY L I S T E D B Y
DAYS INN STURBRIDGE