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DAYS INN SOMERSETOFFERING 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 ex-
penses 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 substanc-
es, 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.
DAYS INN SOMERSET220 WATERWORKS ROAD,
SOMERSET, PENNSYLVANIA 15501
JERRY SWONFirst Vice President Investments
National Hospitality GroupManhattan Office
Office 212.430.5219 Cell 908.625.6934
[email protected] NY 10401248594
NJ 0999581
BRIAN WHELANAssociate
National Hospitality GroupManhattan Office
Office 646.805.1441 Cell 201.966.5918
[email protected] NY 10401277435
NJ 1644475
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 INN SOMERSET
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
15 FINANCIAL OVERVIEWMarket Trend • RevPAR Comparison • Profit & Loss Summary • Five-Year Cash Flo Pro Forma • Five-Year IRR
24 COMPETITVE PROPERTY SET Competitve Properties Map • Competitve Properties
27 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 Z0330038
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EXECUTIVESUMMARY
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220 WATERWORKS ROADSOMERSET, PENNSYLVANIA 15501
OFFERING SUMMARY
Purchase Price $2,350,000
Property Improvement Plan ($1,000 / Room Estimate) $95,000
Total Acquisition $2,445,000
Down Payment $587,500 / 25%
Total Number of Rooms 95
Occupancy 36.1%
ADR $59.23
RevPAR $21.36
Franchise Parent Company Wyndham Hotels & Resorts
Franchise Affiliation Days Inn
Year Built | Renovated 1990 | 2010
Number of Stories 2
Type of Ownership Fee Simple
Lot Size 1.47 Acres
VITAL DATA
Cap Rate - Actual 8.9%
CAP Rate - Total Acquisition 8.5%
CAP Rate - Pro Forma 8.7%
Room Revenue Multiplier 3.2
Room Revenue Multiplier- Pro Forma 3.3
Price/Room - Total Acquisition $25,737
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ANNUALIZED OPERATINGDATA
ANNUALIZED OPERATING DATA
INCOME 2017 % OF GR PRO FORMA % OF GR
Room Revenue $740,658 100.0% $755,545 100.0%
Gross Revenue $740,658 100.0% $755,545 100.0%
Total Expenses $531,747 71.8% $542,944 71.9%
Net Operating Income $208,911 28.2% $212,601 28.1%
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GUEST ROOM AMENITIES
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GUEST ROOM AMENITIES
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INVESTMENT OVERVIEW
Marcus & Millichap has been chosen to exclusively market for sale the Days Inn Somerset, a two-story 95-room hotel located just off Interstates 70 and 76 in the Laurel Highlands, close to Hidden Valley and Seven Springs. This pet friendly hotel offers complimentary WiFi, breakfast, parking and newspapers. Additional amenities include a fitness center and 24-hour reception desk. Guest rooms feature a television, coffee maker, complimentary WiFi, desk, hair dryer, alarm clock, iron and ironing board, telephone, and cribs available per request.
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.
INVESTMENT SUMMARYThe Days Inn Somerset 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 OFFEREDFee simple interest in the Days Inn Somerset, a 95-room hotel located at 220 Waterworks Road, Somerset, Pennsylvania 15501.
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INVESTMENT HIGHLIGHTS
► Business and Leisure Demand
► Proximity to Area Attractions - University of Pittsburgh Johnstown, Frank Lloyd Wright’s Fallingwater, Cambria County War Memorial, Penn State Extension, Hidden Valley Ski Area, Flight 93 National Memorial, Glades Pike Winery, Jennertown Speedway, Compass Inn Museum, Idlewild Park and SoakZone, Mount Pleasant Glass Museum, Laurel Hill State Park, Fort Ligonier, Seven Springs Mountain Resort
TERMS OF SALEThe Days Inn Somerset is offered at $2,350,000 based on a capitalization rate of 8.9 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 $1,762,500
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 Z0330038
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PROPERTY DESCRIPTION
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FEATURES AND
AMENITIES
► Complimentary WiFi
► Fitness Center
► Complimentary Parking
► Complimentary Breakfast
► Pet Friendly
► 24-Hour Reception Desk
► Complimentary Newspapers
COMMON AREA FEATURES
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► Complimentary WiFi
► Television
► Alarm Clock
► Coffee / Tea Maker
► Iron / Ironing Board
► Hair Dryer
► Cribs Available
► Desk
► Telephone
► Mini-refrigerator
► Microwave
GUEST ROOM AMENITIES
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MAPPING
LOCAL MAP REGIONAL MAP
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AREA ATTRACTIONSAREA ATTRACTIONS DISTANCE
Somerset County Memorial Park 2.0 Miles
Penn State Extension 3.5 Miles
Glades Pike Winery 7.4 Miles
Laurel Hill State Park 10.2 Miles
Jennertown Speedway 10.8 Miles
Hidden Valley Ski Area 13.0 Miles
Flight 93 National Memorial 16.0 Miles
Seven Springs Mountain Resort 16.8 Miles
Compass Inn Museum 19.0 Miles
Fort Ligonier 22.0 Miles
Idlewild Park and SoakZone 24.9 Miles
University of Pittsburgh at Johnstown 25.0 Miles
Mount Pleasant Glass Museum 28.2 Miles
Cambria County War Memorial 30.7 Miles
Frank Lloyd Wright’s Fallingwater 30.8 Miles
COMPANY LOCAL EMPLOYEES
Lee Regional Health System 1,300
CTC 1,200
Walmart 961
Kennametal Inc. 876
US Post Office 682
Torrance State Hospital 660
Giant Eagle 635
Lowes 600
APAC Customer Services Inc. 563
Somerset Community Hospital 553
Latrobe Specialty Metals Co. 520
MAJOR EMPLOYERS IN MARKET
Frank Lloyd Wright’s FallingwaterJennertown Speedway Seven Springs Mountain Resort
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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 Z0330038
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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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DAYS INNSOMERSET
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 Z0330038
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 Z0330038
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COMPETITIVE PROPERTY SET
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Hotel City, State Zip Rooms Open
Days Inn Somerset Somerset, PA 15501 95 1990
1 Comfort Inn Somerset Somerset, PA 15501 102 1966
2 Days Inn Breezewood Breezewood, PA 15533 76 1964
3 Econo Lodge Somerset Somerset, PA 15501 54 1991
4 Knights Inn Somerset Somerset, PA 15501 53 1986
5 Hampton Inn Somerset Somerset, PA 15501 110 1996
6 Holiday Inn Express Somerset Somerset, PA 15501 72 2012
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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 Z0330038
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MARKET OVERVIEW
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DEMOGRAPHICS HIGHLIGHTS
18,004
$46,137
POPULATION STATISTIC
INCOME STATISTIC
$108,202HOUSING STATISTIC
EMPLOYMENT BY OCCUPATIONS
III
POPULATION 5 MILE 10 MILES 25 MILES
2022 ProjectionTotal Population
17,889 33,129 194,324
2017 EstimateTotal Population
18,004 33,214 196,240
2010 CensusTotal Population
18,253 34,106 202,564
2000 CensusTotal Population
16,001 33,851 211,907
Daytime PopulationsTotal Population
21,317 32,170 184,833
HOUSEHOLDS 1 MILE 10 MILES 25 MILES
2022 ProjectionTotal Households
6,247 12,492 81,998
2017 EstimateTotal Households
6,262 12,439 82,041
Average (Mean) Household Size 2.20 2.31 2.30
2010 CensusTotal Households
6,451 12,805 84,430
2000 CensusTotal Households
6,466 12,806 85,687
HOUSING UNITS 5 MILE 10 MILES 25 MILES
Occupied Units
2021 Projection 6,247 12,492 81,998
2016 Estimate 6,901 15,091 98,667
HOUSEHOLDS BY INCOME 5 MILE 10 MILES 25 MILES
2017 Estimate
$200,000 or More 2.48% 1.93% 1.98%
$150,000 - $199,000 2.11% 1.73% 2.05%
$100,000 - $149,000 9.23% 9.02% 9.37%
$75,000 - $99,999 12.35% 13.73% 11.93%
$50,000 - $74,999 19.83% 21.46% 21.08%
$35,000 - $49,999 15.49% 15.94% 15.40%
$25,000 - $34,999 11.61% 11.48% 11.71%
$15,000 - $24,999 11.82% 11.76% 12.51%
Under - $15,000 15.08% 12.94% 13.96%
Average Household Income $62,596 $61,030 $60,404
Median Household Income $46,137 $48,145 $46,672
Per Capita Income $24,683 $24,514 $25,749
POPULATION PROFILE 5 MILE 10 MILES 25 MILES
Population 25+ by Education Level
2016 Estimate Population Age 25+ 13,838 24,950 143,843
Elementary (0-8) 3.11% 3.26% 3.08%
Some High School (9-11) 9.64% 8.76% 7.93%
High School Graduate (12) 47.94% 50.91% 46.39%
Some College (13-15) 15.63% 14.51% 15.14%
Associate Degree Only 6.21% 6.79% 8.11%
Bachelors Degree Only 10.41% 9.30% 11.90%
Graduate Degree 6.00% 5.49% 6.59%
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JERRY SWONFirst Vice President InvestmentsNational Hospitality GroupManhattan OfficeOffice 212.430.5219 Cell [email protected] NY 10401248594 | NJ 0999581
BRIAN WHELANAssociateNational Hospitality GroupManhattan OfficeOffice 646.805.1441 Cell [email protected] NY 10401277435 | NJ 1644475
E X C L U S I V E LY L I S T E D B Y
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