| Investment Highlights |
Newly Renovated GuestSuites. The Hotel just underwent an $865,000 interior renovation to all 125 of its suites, including the addition of home office wall units to 6 one-bedroom suites and 44 studio suites. We anticipate the Change of Ownership PIP to be minimal.
New Exterior. At a cost of approximately $260,000, all exterior vinyl siding was removed and the building was re-wrapped with Hardy Plank with new flashing and caulking.
Re-designed Lobby. The lobby of the Hotel has been completely re-designed to enhance the sense of arrival. The lobby has a number of new features including the “In a Pinch” market with snacks and meals that can be prepared in the suite, the “Towne Map” that clearly identifies area amenities and attractions, and a 24-hour coffee/tea nook which also offers a work area with free high-speed wireless Internet and a complimentary connection center.
Outstanding Physical Asset. Since 2007, the Hotel has received $1,125,000 ($9,000 per suite) in improvements, including the above referenced work, to the guestsuites, lobby and façade. Because the current owner has brought the Hotel in line with the most current brand standards, an investor should incur minimal capital expenditures associated with the change in ownership.
Strong Local Hotel Market. Since 2002, the Metairie hotel market has displayed a stable occupancy rate of approximately 65 percent, while ADR has grown from $68.58 in 2002 to $88.55 in 2008. This has led to a RevPAR increase in the market of 41 percent over the past 6 years, an average annual increase of 4.35 percent. Additionally, through October 2009 the New Orleans market has experienced less significant declines than the national lodging market and in October 2009, RevPAR increased by 19.4% versus 2008!
Strategic Location. The Hotel is located between Metairie and Harahan, in Jefferson Parish (the "Parish"). The immediate area is ideal for an extended-stay property. The Hotel is proximate to the Northrop Grumman Avondale Ship Building and Repair facility, the Port of New Orleans and the Ochsner Hospital/Clinic, a nationally recognized, regional medical center. Directly across the street from the Property are the Jefferson Parish Administrative Offices and the Minerals Management Agency, the Department of Energy agency that administers all offshore leasing. Additionally, the Hotel is proximate to the New Orleans International Airport and just a short drive from downtown New Orleans via the Earhart Expressway.
Growing Brand. TownePlace Suites by Marriott ("TownePlace Suites") is a rapidly growing brand. As of September 2008, there were 154 units in the United States. This is an increase of 34 percent over 2004 when there were just 115 TownePlace Suites hotels in the country. During this same period, the brand occupancy percent has remained stable, but ADR and RevPAR have increased by 36.7 percent and 32.5 percent respectively. With 23 hotels under construction and another 61 approved, it will not be long before TownePlace Suites reaches 200-units nationally, a level widely recognized in the hotel industry when a brand reaches critical mass.
Hotel Performance. The Hotel has been a consistent performer for a number of years. Between 2002 and 2008, occupancy at the Property averaged 78.5 percent (76.8 percent excluding post Katrina year 2006). During that same 7-year period, ADR and RevPAR have increased from $68.60 and $55.07 to $107.02 and $77.31 respectively. This represents a compounded annual growth rate of 7.5 percent for ADR and 5.8 percent for RevPAR. With no new extended-stay hotels planned for the immediate area and considering the Hotel's recent total renovation, the Hotel is poised to regain these lofty performance statistics once the current economic malaise begins to subside.
Marriott Affiliation. There is no stronger name in the lodging industry today than Marriott, the undisputed brand leader in the United States. The company ranks near the top in customer loyalty and consumer recognition across all segments of the industry.
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| Property Overview |
The TownePlace Suites New Orleans Metairie is a 4-story, 125-suite extended-stay hotel located in the Elmwood Industrial Park (the "Park" and/or "Elmwood") between Harahan, Louisiana, and Metairie. The Property features a mix of recently remodeled studios, one-bedroom suites and two-bedroom suites, each with a full-kitchen, a dining area and a seating area. The façade is a newly installed Hardy Plank siding with new flashing and caulking and a brick base with brick accents. In addition to the 125-suites, the Hotel features a newly redesigned lobby/reception area, complimentary continental breakfast, one boardroom, a guest laundry, an exercise room and an outdoor pool. The suite mix is as follows:
Studio 97
One-bedroom 6
Two-bedroom 22
Total 125
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