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OFFERING MEMORANDUMwww.APEX-CRE.com
Hotel Interior Corridor Restaurants Freeway Property
TABLE OF CONTENTSEXECUTIVE SUMMARY 3
PROPERTY OVERVIEW 6
AREA OVERVIEW 11
EXCLUSIVE INVESTMENT ADVISORS
TRENT BRIGHTCommercial Real Estate Advisor 0: 801.676.5700C: [email protected]
DANIEL DAVISCommercial Real Estate Advisor0: 801.676.5700C: [email protected]
COLE WATERFALLCommercial Real Estate Advisor0: 801.676.5700C: [email protected]
APEX-CRE.COM
EXECUTIVESUMMARY
3
Baymont Inn and Suites MURRAY, UTAH
PROPERTY SUMMARY
Asking Price $8,500,000
Address 4465 Century Dr. Murray, UT 84123
Year Built / Last Renovated
1975
Stories 2
Site 3.72 Acres
Rooms 127
Building Area 64,567 sf
Lot Area 162,043 sf
Zoning MGC
4Executive Summary
Baymont Inn and Suites MURRAY, UTAH
Property & Investment Highlights
Brand OverviewWyndham Hotels and Resorts is an international hotel and resort chain based in the United States. It has locations in China, Canada, Mexico, Colombia, Ecuador, Turkey, Germany, the UK, the Caribbean, Indonesia and Margarita Island in Venezuela. On June 1, 2018, Wyndham Worldwide spun-off Wyndham Hotels & Resorts as its own company, and Wyndham Worldwide was renamed Wyndham Destinations. As of December 31, 2018, it has 9,157 hotels, including 8,717 that are franchised, 438 that are managed and two that are owned, and, as of March 31, 2019, it has approximately 812,100 rooms, including approximately 745,300 that are franchised and approximately 66,800 that are managed, increased from the systemwide total of 809,933 rooms as of December 31, 2018.
The 23rd Busiest Airport in the USA in 2018
SLC is the 23rd busiest airport in North America and the 85th busiest in the world. More than 340 flights depart daily to 95 nonstop destinations. SLC is currently undergoing a $3.6 billion redevelopment program, the first phase of which will be completed in 2020, while the second phase of the project will be complete in 2023/2024.
The airport plays an important role in supporting business and economic growth in the state. Its operations are a key component in providing affordable access to worldwide destinations for business and individuals. To that end, improved operations of the airport will offer more efficient access to global markets and an opportunity to continue to add value to Utah’s economy by strengthening the ties of local institutions to their global peers (such as universities, hospitals, hotels, the arts, etc.), sustaining existing business, providing access to new business opportunities outside of the state and attracting new business to the state.
Strong Local Market Demand
Business-friendly policy, a strong economy, and quality of life continue to draw outside interest into the Salt Lake market. In 2017, a record $2.2 billion in investment sales was achieved along the Wasatch Front, and development and demand levels across all market segments remain elevated.
Driven by a continued inflow of out-of-state and institutional funds, total investment sales volume in the Salt Lake market reached a record-breaking $2.2 billion in 2017.
Buyers remain active, demonstrating long-term confidence in the local market.
Executive SummarySource: CBRE Hotels Americas Research, Q1 2019
(DATA AVAILABLE UPON REQUEST ONLY) 5
Baymont Inn and Suites MURRAY, UTAH
The Baymont Inn and Suites is located at 4465 South Century Dr. Murray, Utah. Located only 11.4 miles South of the Salt Lake City International Airport (SLC) and conveniently situated on I-15, 7.6 miles from downtown Salt Lake City and 20.7 milesthe Great Salt Lake.
The 2-story Baymont Inn By Wyndham features 127 guest rooms. The property has outstanding access and visibility, standing unobstructed along exit 297 on Interstate 15, where approximately 219,021 cars pass each day.
Salt Lake City is currently underway with a $3.6 billion redevelopment program to help modernize and
upgrade the airport to better serve the more than 24 million passengers that use the airport annually. This upgrade will create a more efficient airport that can better handle the growing demand and needs of both passengers and the airlines it serves.
Upper-priced hotels are projected to experience an ADR growth rate of 1.5%, along with a 1.7% loss in occupancy, resulting in a 0.3% RevPAR decline. Looking towards 2020, Salt Lake City RevPAR is expected to grow 0.9%. This is better than the rate of growth in 2019. Unlike 2019, prospects for RevPAR growth in the upper priced segment (positive 2.0%) are better than in the lower priced segment (negative 0.4%). Salt Lake City market occupancy levels are
expected to range from 68.2% to 69.5% during the 5-year forecast period.
This is an exceptional opportunity to acquire a hotel with a unique freeway location that offers tremendous visibility for the property and the brand in an extremely strong airport market.
Executive Summary 6
Baymont Inn and Suites MURRAY, UTAH
AREAOVERVIEW
7
Baymont Inn and Suites MURRAY, UTAH
Salt Lake City 2026-2030 Olympic Bid & Economic Impact
The 2002 Olympic Winter Gamesenlarged the Utah economy and lefta lasting economic legacy. Thislegacy continues to grow andchange as the Utah economymatures in each subsequent yearsince the Games.
The initial impact includes theinjection of outside funds that paidfor the operation of the Games, newinfrastructure, visitor spending, andother benefits. In the years followingthe Salt Lake City Olympics, othereconomic benefits take hold as theinfrastructure from that time remainsin service to residents and visitorsalike, the surplus/endowment fromthe Games is spent, the travel andtourism industry expands, andUtah’s sports’ industry grows. In alike manner, many intangiblebenefits foster additional economicgrowth as Utah develops as a wintersports capital, attracts businessesrelated to the Olympics, and otherintangibles such as increased
visibility and awareness.
This policy brief provides Utahdecision-makers with a high-levelsummary of Utah’s living economicOlympic legacy and considers theeconomic prospects of a potential2026/2030 Olympic Games.
The economic impacts of the 2002Olympic Winter Games include theregional economic impact (direct,indirect, and induced effects1 of newmoney spent in the state), newinfrastructure that remains in placeafter the Games and servesresidents and visitors, the surplusleftover from the Games thatbenefits the local economy, traveland tourism impacts, and intangibleimpacts, most noticeably, thepositioning of Utah as a winter sportscapital, business development, andincreased visibility and awarenessabout Utah.
Source: Utah’s Olympic Economic Legacy, University of Utah Policy InstituteArea Overview
The International Olympic Committee recently made a dual award of upcomingSummer Olympics — giving 2024 to Paris and 2028 to Los Angeles — Utah’sOlympic leaders anticipate a similar approach may be used to pick sites for the2026 and 2030 Winter Games. There is a major differences between
the 2002 Games and the 2030 Games. Since 2002, the Winter Olympics have added sports, which means more athletes and viewers. We estimate the 2030 Olympic Winter Games will be approximately eight percent larger than 2002 in terms of tickets sold and, with more attendees and increases in spending patterns, visitor spending is estimated to be over 40 percent higher (inflation-adjusted dollars). We also expect the number of event days and television viewership to be 19-35 percent larger. Other things being equal, this growth in sports, events and viewers will create a larger economic footprint in Utah than the 2002 Games.
Additionally, based on our analysis of Utah’s travel and tourism industry before and after the 2002 Olympic Winter Games, we expect skier visits, national park recreation visits, accommodation taxable sales, airport passengers, and private leisure and hospitality employment to continue a positive growth trajectory after another Olympic Winter Games. A growth trend of 25-60 percent over 14 years, depending on the
indicator, would be consistent with past experience.
Given these comparisons, we conservatively estimate the 2026/2030 Olympics will create at least as large an economic impact as the 2002 Olympic Winter Games. This impact will occur as new money is brought into the state circulates throughout the economy creating indirect and induced economic effects. Further, Utah’s travel and tourism industry will benefit from infrastructure investment and the increased visibility from hosting the Olympic Games. The five to nine percent skier visit displacement observed in 2002 could be mitigated with advanced marketing and planning.
Finally, the intangible benefits of Utah’s continuing ascension as a winter sports capital (home to world class events and elite athletes), business development opportunities, increased visibility and awareness, and other intangibles further strengthens the economic impact of hosting another Olympic Games.
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Baymont Inn and Suites MURRAY, UTAH
Salt Lake City International Airport (SLC)
Fast Facts
SLC’s total number of passengers increased year- over-year by more than 5% in2018, marking the sixth consecutive year of growth at the airport. The stronggrowth in traffic can be attributed to one of the fastest growing populations in thecountry with Utah’s population growing over 14% since 2010.
Year to date March 2019 passenger activity is up month to month from last yearby an average of 4.8% and the future outlook for passenger activity at SLCcontinues to appear positive.
Source: https://www.slcairport.com
Area Overview
SLC is the 23rd busiest airport in North America and the 85th busiest in theworld. More than 340 flights depart daily to 95 nonstop destinations. SLC iscurrently undergoing a $3.6 billion redevelopment program, the first phase ofwhich will be completed in 2020.
VIDEOS
1. The New SLC (Project Description)2. Timelapse Video
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Baymont Inn and Suites MURRAY, UTAH
Area Overview
LODGING MARKETOVERVIEW
Regional Economic SummaryEconomic activity in the Twelfth District continued to expand at a moderate pace during the reportingperiod of mid-February through March. Conditions in the labor market remained tight, hiring activityremained generally stable, and wage growth was moderate. Price inflation was unchanged onbalance. Sales of retail goods increased modestly, while activity in consumer and business servicesincreased moderately. Conditions in the manufacturing sector improved modestly, and conditions inagriculture deteriorated somewhat. Contacts reported that residential real estate market activityexpanded moderately, and commercial activity was robust. Lending activity was mixed.
Activity in the consumer and business services sectors increased moderately on balance. Demand forpassenger and cargo air transportation expanded solidly. Activity in the quick service restaurantsegment was slightly stronger on a year-over-year basis. A contact in the hospitality sector in SouthernCalifornia noted that hotel bookings declined noticeably, driven by fewer reservations at moreaffordable properties.
Hotel Market SummaryRevPAR increase of 0.3%. This is the result of an estimated decline in occupancy of 1.5% and a 1.8%gain in average daily room rates (ADR). The 0.3% advance in Salt Lake City RevPAR is less than thenational projection of a 2.0% increase.
Leading the way in 2019 RevPAR change is the lower-priced segment of Salt Lake City. Theproperties in this category are forecast to attain a 3.0% gain in ADR, but suffer a 1.2% decrease inoccupancy, resulting in a 1.7% RevPAR increase. Upper-priced hotels are projected to experience anADR growth rate of 1.5%, along with a 1.7% loss in occupancy, resulting in a 0.3% RevPAR decline.
Looking towards 2020, Salt Lake City RevPAR is expected to grow 0.9%. This is better than the rate ofgrowth in 2019. Unlike 2019, prospects for RevPAR growth in the upper priced segment (positive2.0%) are better than in the lower priced segment (negative 0.4%). Salt Lake City market occupancylevels are expected to range from 68.2% to 69.5% during the 5-year forecast period.
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Baymont Inn and Suites MURRAY, UTAH
The graphs on the left illustrate the magnitude of change in performance during the historical and forecasted period 2014 to 2023. Used as a relative benchmark, each market segment is plotted against a common index value of 2014 = 100. This method provides clear insight of how each market segment performed and is expected to perform in relation to others in the specified period. The charts on the right compare near-term historical compound annual growth rates (CAGR) to the CAGRs for the forecast period.
Source: CBRE Hotels Americas Research, Q1 2019 (DATA AVAILABLE UPON REQUEST ONLY) 16
Baymont Inn and Suites MURRAY, UTAH
Source: CBRE Hotels Americas Research, Q1 2019 (DATA AVAILABLE UPON REQUEST ONLY) 17
Baymont Inn and Suites MURRAY, UTAH
Baymont Inn and Suites MURRAY, UTAH
INVESTMENT CONTACTS
TRENT BRIGHTCommercial Real Estate Broker
0: 801.676.5700C: 435.820.6801
DANIEL DAVISCommercial Real Estate Agent
COLE WATERFALLCommercial Real Estate Agent
Baymont Inn and Suites MURRAY, UTAH
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