COMFORT SUITES NEAR CASINOS NORWICH
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 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.
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 indicate 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 prospective 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
Direct: 212-430-5219Mobile: 908-625-6934
DANIEL ZAGORIASenior Associate
National Hospitality GroupManhattan Office
Direct: 212-430-5211Mobile: 404-401-6006
TIM MCCAFFREYSenior Associate
National Hospitality Group Manhattan Office
Direct: 212-430-5197Mobile: 516-510-3075
CAMERON PIERCEAssociate
National Hospitality Group Manhattan Office
Direct: 646-805-1437Mobile: 631-681-8779
COMFORT SUITESNEAR CASINOS NORWICH
275 OTROBANDO AVENUE,NORWICH, CONNECTICUT 06360
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
01 EXECUTIVE SUMMARYOffering Summary • Vital Data • Annualized Operating Data •
Executive Summary • Investment Overview • Summary Of Terms
TABLE OF CONTENTS
EXCLUSIVELY LISTED BY
09 PROPERTY DESCRIPTIONFeatures / Amenities • Local / Regional Map • Area Attractions
17 FINANCIAL OVERVIEWMarket Trend • RevPAR Comparison • Profit & Loss Summary • Five-Year Cash Flow Pro Forma • Five-Year IRR
24 COMPETITVE PROPERTY SET Competitve Properties Map • Competitve Properties
27 MARKET OVERVIEWDemographic Summary • Market Overview
COMFORT SUITESNEAR CASINOS NORWICH
275 OTROBANDO AVENUE,NORWICH, CONNECTICUT 06360
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 Z0332231
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EXECUTIVESUMMARY
COMFORT SUITES NEAR CASINOS NORWICH
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275 OTRIBANDO AVENUE,NORWICH, CONNECTICUT 06360
OFFERING SUMMARY
Purchase Price $7,750,000
Down Payment $1,937,500 / 25%
Total Number of Rooms 119
Occupancy 49.2%
ADR $107.17
RevPAR $52.70
Year Built 1997
Number of Stories 5
Type of Ownership Fee Simple
Lot Size 2.31 Acres
VITAL DATA
Room Revenue Multiplier 3.4
Room Revenue Multiplier- Pro Forma 3.4
Price/Room $65,126
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ANNUALIZED OPERATINGDATA
ANNUALIZED OPERATING DATA
INCOME T12 AUG 2018 % OF GR PRO FORMA % OF GR
Room Revenue $2,289,055 97.4% $2,427,543 97.4%
Other Revenue $61,325 2.6% $65,036 2.6%
Gross Revenue $2,350,381 100.0% $2,492,579 100.0%
Total Expenses $1,946,690 82.8% $1,872,095 75.1%
Net Operating Income $403,691 17.2% $620,484 24.9%
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INVESTMENT OVERVIEW
Marcus & Millichap has been chosen to exclusively market for sale the Comfort Suites Near Casinos Norwich, a five-story 119-room hotel conveniently located near exit 27 off Route 2, and exit 82 off Interstate 395. The hotel is located approximately 45 miles from T.F. Green Airport.Amenities include: fitness center, banquet facilities, complimentary WiFi,meeting room, laundry facility, and indoor pool. Hotel guest rooms featurea microwave, television, refrigerator, desk, daily housekeeping, iron andironing board, hair dryer, and coffee maker.
INVESTMENT SUMMARYThe Comfort Suites Near Casinos Norwich 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.
TERMS OF SALEThe Comfort Suites Near Casinos Norwich is offered at $7,750,000 based on a 3.4 room revenue multiplier. Historic operating documentation and third party reports may be found in the online document data portal.
FRANCHISEChoice Hotels International (NYSE:CHH) is one of the largest and most successful lodging companies in the world. Choice currently franchises more than 6,500 hotels, representing more than 500,000 rooms, in more than 35 countries and territories.
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INVESTMENT HIGHLIGHTS
► Located near Exit 27 off Route 2 and Exit 82 off Intertate 395
► Approximately 45 Miles from T.F. Green Airport
► Proximity to Area Attractions - Foxwoods Resort Casino, Mohegan Sun Casino, Eastern Connecticut State University, Dodd Stadium, Universityof Connecticut, Mystic Seaport, Stanley Israelite Business Park, WilliamW. Backus Hospital
INTEREST OFFEREDFee simple interest in the Comfort Suites Near Casinos Norwich, a 119-room hotel located at 75 Otrobando Avenue, Norwich, Connecticut.
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 $5,812,500
Loan Type Proposed New
Interest Rate 6.20%
Amortization 25 Years
Loan information is time sensitive and subject to change. Contact your local Marcus & Millichap Capital Corporation representative.
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COMFORT SUITES NEAR CASINOS NORWICH
AMENITIES
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COMFORT SUITES NEAR CASINOS NORWICH
AMENITIES
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 Z0332231
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PROPERTY DESCRIPTION
COMFORT SUITES NEAR CASINOS NORWICH
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FEATURES AND
AMENITIES
► Complimentary WiFi
► Complimentary Parking
► Complimentary Breakfast
► Indoor Pool
► Laundry Facility
► Business Center
► Bar / Lounge
► Meeting / Banquet Facilities
► Complimentary Shuttle
► Fitness Center
COMMON AREA FEATURES
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► Complimentary WiFi
► Television
► Premium Cable Channels
► Coffee / Tea Maker
► Iron / Ironing Board
► Hair Dryer
► Desk
► Telephone
► Microwave
► Refrigerator
► Daily Housekeeping
GUEST ROOM AMENITIES
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MAPPING
LOCAL MAP REGIONAL MAP
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AREA ATTRACTIONSAREA ATTRACTIONS DISTANCE
Norwichtown Commons 1.7 Miles
William W. Backus Hospital 2.8 Miles
Dodd Stadium 2.9 Miles
Slater Memorial Museum 3.4 Miles
Stanley Israelite Business Park 4.3 Miles
Norwich Golf Course 4.5 Miles
Mohegan Sun Casino 5.7 Miles
Hopemead State Park 8.3 Miles
Foxwoods Resort Casino 11.8 Miles
Eastern Connecticut State University 14.1 Miles
University of Connecticut 21.3 Miles
Mystic Aquarium 23.0 Miles
Mystic Seaport Museum 23.6 Miles
Misquamicut Beach 28.7 Miles
MAJOR EMPLOYERS IN MARKET
Eastern Connecticut State University Foxwoods Resort Casino University of Connecticut
COMPANY LOCAL EMPLOYEES
United States Department of Navy 15,239
Foxwoods Resort Casino 11,002
Electric Boat Corporation 8,191
Pfizer 6,439
Office Sponsored Programs 4,469
University of Connecticut 2,169
Walmart 1,470
Backus Corporation 1,437
Lawrence & Memorial Hospital Inc. 1,400
Computer Sciences Corporation 1,087
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COMFORT SUITES NEAR CASINOS NORWICH
GUEST ROOM AMENITIES
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GUEST ROOM AMENITIES
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 Z0332231
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FINANCIALANALYSIS
COMFORT SUITES NEAR CASINOS NORWICH
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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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 Z0332231
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 Z0332231
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EXECUTIVESUMMARY
COMFORT SUITES NEAR CASINOS NORWICH
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COMPETITIVE PROPERTY SET
COMFORT SUITES NEAR CASINOS NORWICH
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COMPETITIVE PROPERTY SET
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Hotel City, State Zip Rooms Open
Comfort Suites Near Casinos Norwich Norwich, CT 06360 119 1997
1 Holiday Inn Norwich Norwich, CT 06360 135 1971
2 Courtyard Norwich Norwich, CT 06360 120 1997
3 Fairfield Inn & Suites Uncasville Uncasville, CT 06382 105 1999
4 Microtel Inn & Suites by Wyndham Montville Uncasville Uncasville, CT 06382 120 2001
5 Hyatt Place Mohegan Sun Uncasville, CT 06382 176 2009
1
2
4
5
3
1
4
3
2
5
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 Z0332231
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MARKET OVERVIEW
COMFORT SUITES NEAR CASINOS NORWICH
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DEMOGRAPHICS HIGHLIGHTS
50,016
$54,351 $201,077
POPULATION STATISTIC
INCOME STATISTIC HOUSING STATISTIC
EMPLOYMENT BY INDUSTRIES
III
POPULATION 5 MILES 10 MILES 25 MILES
2022 ProjectionTotal Population
51,827 113,022 583,456
2017 EstimateTotal Population
50,016 109,147 565,258
2010 CensusTotal Population
50,055 109,353 567,176
2000 CensusTotal Population
45,030 100,680 530,729
Daytime PopulationsTotal Population
55,263 106,630 543,634
HOUSEHOLDS 5 MILES 10 MILES 25 MILES
2022 ProjectionTotal Households
21,180 44,277 223,465
2017 EstimateTotal Households
20,276 42,409 214,561
Average (Mean) Household Size 2.44 2.53 2.49
2010 CensusTotal Households
20,241 42,356 214,772
2000 CensusTotal Households
18,478 38,744 198,801
HOUSING UNITS 5 MILES 10 MILES 25 MILES
Occupied Units
2022 Projection 21,180 44,277 223,465
2017 Estimate 22,638 46,471 242,601
HOUSEHOLDS BY INCOME 5 MILES 10 MILES 25 MILES
2017 Estimate
$200,000 or More 3.57% 4.25% 6.52%
$150,000 - $199,000 4.57% 6.38% 8.22%
$100,000 - $149,000 13.59% 17.62% 18.92%
$75,000 - $99,999 11.77% 14.37% 14.63%
$50,000 - $74,999 20.66% 20.20% 17.76%
$35,000 - $49,999 13.57% 12.27% 11.23%
$25,000 - $34,999 9.97% 8.27% 7.47%
$15,000 - $24,999 11.43% 8.63% 7.52%
Under - $15,000 10.87% 8.01% 7.73%
Average Household Income $73,026 $84,365 $96,520
Median Household Income $54,351 $64,879 $72,399
Per Capita Income $29,756 $33,035 $37,293
POPULATION PROFILE 5 MILES 10 MILES 25 MILES
Population 25+ by Education Level
2017 Estimate Population Age 25+ 35,004 76,915 385,793
Elementary (0-8) 2.29% 1.73% 1.85%
Some High School (9-11) 7.94% 7.18% 6.01%
High School Graduate (12) 36.16% 35.26% 29.82%
Some College (13-15) 23.18% 21.77% 19.13%
Associate Degree Only 8.04% 8.59% 8.49%
Bachelors Degree Only 12.73% 14.26% 18.81%
Graduate Degree 7.75% 9.87% 15.11%
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E X C L U S I V E LY L I S T E D B Y
COMFORT SUITES NEAR CASINOS NORWICH