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Brochure+ +americas+best+value+inn+-+lansing+mi

  1. 1. Lansing, MI 1100 Ramada Drive | Lansing, MI 48911 CONFIDENTIAL OFFERING BROCHURE LIstIng OffeReD CB Richard Ellis Hotels presents, for your consideration, the opportunity to acquire By: the 100-room Americas Best Value Inn in Lansing, Michigan at a very affordable James Johnson price. The limited service hotel is located just south of downtown Lansing. The Chicago: 312.935.1019 Santa Fe: 505.986.5890 one-story, exterior corridor hotel is situated on 2.9 acres along I-96, and within an Mike Horvath eight mile drive of the State Capitol, Michigan State University, Sparrow Hospital, 312.935.1022 Jackson National Life Insurance, and General Motors.
  2. 2. pROpeRty DetAILs Asset Americas Best Value Inn yeAR BUILt Originally built in 1980 as a Knights Inn. The property consists of four separate one-story buildings OwneRshIp InteRest Fee Simple sIte AReA 2.9 acres (±128,066 square feet) pARkIng On-site surface parking (133 spaces) nUMBeR Of UnIts 100 rooms and a two bedroom manager’s apartment COnstRUCtIOn Wood construction with stucco exterior. The roofs of each building are wood trusses covered topped by asphalt shingles. MeetIng fACILItIes A large 600 sq. foot meeting/banquet room off the side of the lobby. It is currently used for storage CApItAL IMpROveMents 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. AMenItIes 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 AgReeMent Franchise license agreement subject to annual renewal with Americas Best Value Inn Operating Performance Year End 12 Months Year End Year End ALL REASONABLE 2009 Ending 4/30/09 2008 2007 Occupancy 35.2% 35.8% 36.6% 38.4% OFFERS CONSIDERED! 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 America’s Best Value Inn| Lansing, MI
  3. 3. InvestMent hIghLIghts TransienT & Leisure DeManD to year contract. Additionally, franchise fees are limited to The Americas Best Value Inn is well located to capture transient, $1,500 per month. This franchise is ideal for a hands on leisure and SMERF demand due to its proximity to the area’s owner/operator looking to have an affordable association corporate and leisure attractions. Easy interstate access, with a nationally known brand and reservation system. 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/OperaTOr This 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: Projected Operating Performance Year End Year End Year End Year End 2011 2012 2013 2014 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 upsiDe pOTenTiaL THrOugH renOvaTiOn Given 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 TransFer The 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 ,
  4. 4. hOteL MARket OveRvIew The primary South Lansing competitors of the Americas Best Competitive Hotels Value Inn are listed in the chart on the right. Hotel Rooms Year Opened These hotels are typically charging $15 to $20 more per night then the Americas Best Value Inn. Closing the ADR americas Best value inn 100 1980 gap is an opportunity for diligent management to increase Days Inn Lansing South 147 1967 revenue. Super 8 Lansing 42 1988 Causeway Bay 300 N/A Despite decreases in occupancy, the Americas Best Value Inn has remained stable at an Average Daily Rate of $38 over Red Roof Inn Lansing 81 1975 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. LIstIng OffeReD By: James Johnson Chicago: 312.935.1019 Santa Fe: 505.986.5890 Mike Horvath 312.935.1022 © 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.