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NITI NAIKLicensed [email protected] BRE #735690
SUBHASH NAIKMaking Deals Happen [email protected] #01717362
STAYBRIDGE SUITESDALLAS-THE COLONY | TEXAS
OFF E RIN G M EM ORANDUM
H O T E L B R O K E R S O F A M E R I C A
5280 Memorial Drive The Colony, Texas 75056
NON-ENDORSEMENT & DISCLAIMER NOTICECONFIDENTIALITY & DISCLAIMER
All materials and information received or derived from Hotel
Brokers of America (HBA) its directors, o�cers, agents,
advisors, a�liates and/or any third party sources are provided
without representation or warranty as to completeness ,
veracity, or accuracy, condition of the property, compliance
orlack of compliance with applicable governmental
requirements, developability or suitability, financial performance
of the property, projected financial performance of the property
for any party’s intended use or any and all other matters.
Neither HBA, its directors, o�cers, agents, advisors, or a�liates
makes any representation or warranty, express or implied, as to
accuracy or completeness of the any materials or information
provided, derived, or received. Materials and information from
any source,whether written or verbal, that may be furnished for
review are not a substitute for a party’s active conduct of its
own due diligence to determine these and other matters of
significance to such party. HBA will not investigate or verify any
such matters or conduct due diligence for a party unless
otherwise agreed in writing.
EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT
INVESTIGATION AND DUE DILIGENCE.
Any party contemplating or under contract or in escrow for a
transaction is urged to verify all information and to conduct
their own inspections and investigations including through
appropriate third party independent professionals selected by
such party. All financial data should be verified by the party
including by obtaining and reading applicable documents and
through appropriate third party independent professionals
selected by such party. All financial data should be verified by
the party including by obtaining and reading applicable
documents and reports and consulting appropriate independent
professionals. HBA makes no warranties and/or representations
regarding the veracity, completeness, or relevance of any
financial data or assumptions. Hotel Brokers Inc does not serve
as a financial advisor to any party regarding any proposed
transaction. All data and assumptions regarding financial
performance, including that used for financial modeling
purposes, may di�er from actual data or performance. Any
estimates of market rents and/or projected rents that may be
provided to a party do not necessarily mean that rents can be
established at or increased to that level. Parties must evaluate
any applicable contractual and governmental limitations as well
as market conditions,vacancy factors and other issues in order
to determine rents from or for the property.
Legal questions should be discussed by the party with an
attorney. Tax questions should be discussed by the party with a
certified public accountant or tax attorney. Title questions
should be discussed by the party with a title o�cer or attorney.
Questions regarding the condition of the property and whether
the property complies with applicable governmental
requirements should be discussed by the party with appropriate
engineers, architects, contractors, other consultants and
governmental agencies. All properties and services are
marketed by HBA in compliance with all applicable fair housing
and equal opportunity laws.
SUBHASH NAIK | Making Deals Happen
661.978.3109 | [email protected] | CalBRE #01717362H O T E L B R O K E R S O F A M E R I C A
EXCLUSIVELY LISTED BY
.. . . . . . . . . . . . . . . . . . . . . . . . . .
America’s Hotel Brokers’ Brokerwww.HBofAmerica.com.com
STAYBRIDGE SUITESDALLAS-THE COLONY, TX
98-ROOM, INTERIOR CORRIDORS, AMENITIZED HOTELS
H O T E L B R O K E R S O F A M E R I C A
EXECUTIVE SUMMARY ... . . . . . . . . . . . . . . . . . . . . . . . . . 5
PROPERTY OVERVIEW . .. . . . . . . . . . . . . . . . . . . . . . . .....9
FINANCIAL OVERVIEW 17
MARKET OVERVIEW 25
.. . . . . . . . . . . . . . . . . . . . . . . .
TABLE OF CONTENTS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NITI NAIKLicensed Broker
TX BRE #735690
SUBHASH NAIKMaking Deals Happen
CalBRE #01717362
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. For more information please contact Hotel Brokers of America.
STAYBRIDGE SUITES | DALLAS5280 Memorial Drive The Colony, Texas 75056
H O T E L B R O K E R S O F A M E R I C A
ACCEPTING REASONABLE OFFERS
America’s Hotel Brokers’ Broker
STAYBRIDGE SUITESDALLAS - THE COLONY
EXECUTIVE SUMMARY
Hotel Brokers of America is pleased to o�er, on an exclusive basis, the opportunity to acquire this 98-room Staybridge Suites Suites (“Property” or “Hotel”), prominently located in the Dallas-The Colony, Texas area. The Colony, City by the Lake, is one of the best kept secrets in the heart of North Texas, as it is best known for its 23 miles it has along the eastern shoreline, giving it strikingly beautiful views of Lewisvil le Lake, The lake is great for relaxing, fishing, boating and swimming and is l ined with beaches, hiking and biking trails and golf courses. Furthermore, this area has attractions such as TopGolf, Hawaiian Falls Water Park, GrandScape/Nebraska Furniture Mart. Also, less than 5 miles from the hotel are the Shops at Legacy and Legacy West in Plano, which boasts intimate boutiques, delicious restaurants, l ively bars and entertainment venues, and the indie film house, The Angelika, and DFW's MLS team, FC Dallas.
ESTIMATED PIP COST: PRICE$0
OFFERING SUMMARY
List Price:
Occupancy:
ADR:
NOI
Cap Rate:
Revenue:
$11,000,000
62.77% (Proj. 2020)
$101.48 (Proj. 2020)
$879,418 (Proj. 2020)
7.36% (Proj. 2020)
$2,325,663 (Proj. 2020)
NOI$879,418
PRICE$11,000,000
CAP RATE7.36%
SUBHASH NAIK | Making Deals Happen
661.978.3109 | [email protected] | CalBRE #01717362H O T E L B R O K E R S O F A M E R I C A
America’s Hotel Brokers’ Broker
AMENITIES HIGHLIGHTS
•
•
•
•
•
•
PROPERTY DESCRIPTION
Free Wireless Internet
Complimentary breakfast
Business Center
Fitness Center
24-hour front desk
Kitchenette in Room
Laundry Facilities
Pet Friendly
Outdoor Pool
Free parking
Conference facilities
Private garden grounds
•
•
•
•
•
SUBHASH NAIK | Making Deals Happen
661.978.3109 | [email protected] | CalBRE #01717362H O T E L B R O K E R S O F A M E R I C A
America’s Hotel Brokers’ Broker
•
INTEREST OFFEREDHotel Brokers of America has been selected to exclusively market for sale Staybridge Suites - Dallas-The Colony, TX.
TERMS OF SALEThis Staybridge Suites - Dallas-The Colony, TX is o�ered on an Open Bid basis. The net operating income figures for the Property assume a fiscal year starting 2020. Contact broker for historical operating documentation and any other third party reports.
PROPERTY TOURSProspective purchasers are encouraged to visit the subject properties prior to submitting o�ers. However, all property tours must be arranged with the Hotel Brokers of America l isting agents. Please do not contaAct the tenants, on-site management or sta� without prior approval property tours must be arranged with the Hotel Brokers of America l isting agents. At no time shall the tenants, on-site management or sta� be contacted without prior approval.
SUMMARY OF TERMS
EXECUTIVE SUMMARY
SUBHASH NAIK | Making Deals Happen
661.978.3109 | [email protected] | CalBRE #01717362H O T E L B R O K E R S O F A M E R I C A
America’s Hotel Brokers’ Broker
A U S T I N A I R P O R T
PROPERTY OVERVIEWH O T E L B R O K E R S O F A M E R I C A
STAYBRIDGE SUITESDALLAS - THE COLONY
PROPERTY DETAILS
PROPERTY DESCRIPTION
64,650 SF
2.41 Acres
2016
4
98
All Rooms Have Interior Hallways
62.77%
Windows Do Not Open
Yes
No
Yes | Complimentary Breakfast
Yes | Yes - Outdoor
$101.48
3-Star
The Staybridge Suites ® Hotel in The Colony, TX, is
conveniently located in the Five Star Complex District o�
Hwy 121 & The Sam Rayburn Tollway. We are an upscale
all-suite contemporary hotel that's perfect for all travelers.
If you are relocating, visiting for leisure or business then
we are the perfect hotel choice. Close by are major North
Dallas Corporations such as: Toyota, JP Morgan Chase,
FedEx, JC Penney, PepsiCo, Oracle and Ericsson.
Vacationers, this all-suite hotel is within 5 minutes of the
Largest Store in Texas – The Nebraska Furniture Mart.
Building SF:
Lot Size :
Year Built:
Floors:
Rooms:
Corridors:
Occupancy:
Room Windows:
Suites:
Meeting Rooms:
Dining Facilities:
Fitness Center/Pool:
Average Daily Rate:
Star Class Rating
SUBHASH NAIK | Making Deals Happen
661.978.3109 | [email protected] | CalBRE #01717362H O T E L B R O K E R S O F A M E R I C A
America’s Hotel Brokers’ Broker
COMPETITOR CLOSEUP MAP
SUBHASH NAIK | Making Deals Happen
661.978.3109 | [email protected] | CalBRE #01717362H O T E L B R O K E R S O F A M E R I C A
America’s Hotel Brokers’ Broker
MARKET OVERVIEW MAP America’s Hotel Brokers’ Broker
161
ParkdaleLake
Lake RayHubbard
GrapevineLake
DallasExecutive
Airport
DA
LLA
S N
ORT
H (T
OLL
WA
Y)
121
289
78
289
78
635
35E
BEDFORD
GRAPEVINE
SOUTHLAKE
IRVING
COPPELL
RICHARDSON
FRISCO
DALLAS
DUNCANVILLE
HURST
ARLINGTON
GRAND PRAIRIE
GARLAND
ADDISON
CARROLLTON
NORTHRICHLAND HILLS
COLLEYVILLE
LEWISVILLE
EULESS
American AirlinesC.R. Smith Museum
Curtis CulwellCenter
CavanaughFlight Museum
GrapevineMills
AddisonAirport
Dallas/Fort WorthInternational
Airport
DallasChildren’sTheater
Bath HouseCultural Center
DallasArboretum
MesquiteRodeo
Dallas MarketCenter
DallasZoo
DeepEllum
ToyotaStadium
Frontiers ofFlight Museum
Infomart
Lone StarPark
Louis Tussaud’sPalace of Wax &
Ripley’s Believe It or Not!
MeadowsMuseum
SEA LIFEAquarium
LEGOLAND®Discovery Center
SouthforkRanch
TradersVillage
Verizon Theatreat Grand Prairie
FairPark
HighlandPark Village
The Galleria
Knox-Henderson
Lake & Garden District
InwoodOutlet Center
Irving Mall MockingbirdStation
NorthParkCenter
StonebriarCentre Mall
VistaRidge Mall
BUSHTURNPIKE
GALATYNPARK
ARAPAHOCENTER
SPRINGVALLEY
LBJ/CENTRAL
FOREST LANE
WALNUT HILL
PARK LANE
LOVERSLANE
MOCKINGBIRD
CITYPLACE/UPTOWN
MEDICAL/MARKETCENTER
HURST/BELL
CENTREPORT/DFW AIRPORT
WESTIRVING
DOWNTOWN IRVING/HERITAGE CROSSING
NORTHCARROLLTON/FRANKFORD
TRINITY MILLS
DOWNTOWNCARROLLTON
BELT LINE
NORTH LAKECOLLEGE
IRVINGCONVENTION CENTER
FARMERSBRANCH
ROYAL LANE
WALNUT HILL/DENTON
BACHMAN
BURBANK
DEEP ELLUM
HATCHER LAWNVIEW
HAMPTONTYLER/VERNON
DALLAS ZOOMORRELL
ILLINOIS
KIEST
VA MEDICALCENTER
LEDBETTER
CEDARS
WHITE ROCK
LAKEHIGHLANDS
LBJ/SKILLMAN
FOREST/JUPITER
DOWNTOWNGARLAND
DOWNTOWNROWLETT
Bishop Arts District
Greenville Avenue
DesignDistrict
The Cedars
White Rock Lake
Lavon Lake
MacysGalleriaDallas
BachmanLake
GeorgeW. Bush
PresidentialCenter
SOUTHWESTERNMEDICAL DISTRICT
MARKETCENTER
PRESIDENT GEORGE BUSH TURNPIKE
North Lake
114
97
114
26
183
161
180
12
360
360
40867
10
LAS COLINASURBAN CENTER
121
35E
35E
3030
2020
30
635
635
VilbigLakes
MountainCreekLake
INWOOD/LOVE FIELD
UNIVERSITYOF DALLAS
Grand PrairiePremium Outlets
CommemorativeAir Force
75
75
80
WESTMORELAND
GFED
BAYLOR UNIVERSITYMEDICAL CENTER
AREA OF DETAIL
Cedar RidgePreserve
Freedman’sCemeteryMemorial
DOWNTOWN
Six FlagsHurricane Harbor
Six FlagsOver TexasAT&T Stadium
Globe Life Park
Dallas LoveField Airport
MARKET OVERVIEW MAP America’s Hotel Brokers’ Broker
AERIAL IMAGE
SUBHASH NAIK | Making Deals Happen
661.978.3109 | [email protected] | CalBRE #01717362H O T E L B R O K E R S O F A M E R I C A
America’s Hotel Brokers’ Broker
PROPERTY PHOTOS
SUBHASH NAIK | Making Deals Happen
661.978.3109 | [email protected] | CalBRE #01717362H O T E L B R O K E R S O F A M E R I C A
America’s Hotel Brokers’ Broker
PROPERTY PHOTOS
SUBHASH NAIK | Making Deals Happen
661.978.3109 | [email protected] | CalBRE #01717362H O T E L B R O K E R S O F A M E R I C A
America’s Hotel Brokers’ Broker
A U S T I N A I R P O R T
FINANCIAL OVERVIEWH O T E L B R O K E R S O F A M E R I C A
STAYBRIDGE SUITESDALLAS - THE COLONY
DEAL ANALYZERH O T E L B R O K E R S O F A M E R I C A
ACTUAL PROJECTED PROJECTED
Based on P&L T-12 May 2020 2021 2022
Hotel Sale Price 11,000,000 11,000,000 11,000,000 - - - Total Selling Price 11,000,000 11,000,000 11,000,000 Estimated Renovation (PIP) - - - Total Project Cost 11,000,000 11,000,000 11,000,000
Number of Rooms 98 98 98
Occupancy 60.94% 62.77% 64.65%
ADR 98.53$ 101.48$ 104.53$ RevPAR 60.04$ 63.70$ 67.58$ Room Revenue 2,147,730$ 2,278,527$ 2,417,289$ Food & Beverage -$ -$ -$ Meeting Room Revenue -$ -$ -$ Other Revenue 45,888$ 47,136$ 48,550$ Total Revenue 2,193,618$ 2,325,663$ 2,465,839$
Net Operating Income 829,488 879,418 932,424 3% Management 65,809 69,770 73,975 4% FF&E Reserves - - -
ADJUSTED NOI $$ 763,679 809,648 858,449 NOI % Before MGMT and Reserves 37.81% 37.81% 37.81%NOI% After MGMT and Reserves 34.81% 34.81% 34.81%
KEY RATIOSRevenue Per Room 21,916$ 23,250$ 24,666$ Cap Rate After PIP 6.94% 7.36% 7.80%Room Gross Multiplier After PIP 5.01 4.73 4.46 Price per Room AFTER PIP 112,245$ 112,245$ 112,245$
FINANCIAL ANALYSIS
Total Project Cost 11,000,000$ 11,000,000$ 11,000,000$ Down Payment % 20.00% 20.00% 20.00%Cash Down Payment (Estimate) 2,200,000$ 2,200,000$ 2,200,000$ SELLER LOAN(2nd) If Approved 0$ 0$ 0$
Total Down + Secondary Financing 2,200,000$ 2,200,000$ 2,200,000$
SBA LOAN 8,800,000$ 8,800,000$ 8,800,000$ 80.00% 80.00% 80.00%
NOI% After MGMT and Reserves 763,679 809,648 858,449
1st Loan Payment 648,476$ 648,476$ 648,476$ 2nd loan from Seller 0$ 0$ 0$ Total Mortgage Payment 648,476$ 648,476$ 648,476$
Profit After Mortgage (Debt) 115,203$ 161,172$ 209,973$ Cash On Cash Return 5.24% 7.33% 9.54%Principle Reduction Annual (Estimate) 168,687$ 161,019$ 153,351$ Total Annual Profit 283,889$ 322,191$ 363,324$
NET Cash on Cash Return 12.9% 14.6% 16.5%Debt coverage Ratio BANK 1.18 1.25 1.32
HISTORICAL P&L | 1 YEAR H O T E L B R O K E R S O F A M E R I C A
98 Room Staybridge Suites The Colony, TX PROJECTED FORWARD 12 MONTH RECONSTRUCTED PROFIT & LOSS
Comp Set Occupancy 2018 74.6 77.8 76.5 69.9 64.2 76.3 70.2 55.9 68.2 80.5 37.6 15.5 63.90%Comp Set ADR 2018 119.50 119.21 122.42 117.07 119.48 115.38 112.83 107.49 123.07 119.96 116.76 95.85 117.37$ Days in Month 30 31 31 30 31 30 31 31 29 31 30 31 366
TRAILING 12 MONTHS Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May TOTAL
Occupancy 64.05% 69.75% 53.79% 69.52% 70.41% 56.09% 42.07% 64.22% 74.45% 64.02% 51.53% 52.17% 60.94%Average Room Rate 107.90 104.70 105.62 98.25 99.63 99.81 98.66 99.72 98.12 97.24 89.58 78.47 98.53$
Rev Par 69.11 73.03 56.81 68.31 70.14 55.98 41.50 64.04 73.06 62.25 46.16 40.94 60.04
Departmental Revenues
Rooms 203,183 221,854 172,586 200,826 213,100 164,592 126,084 194,544 207,626 189,128 135,708 124,382 2,153,614 97.91%Food & Beverage - - - - - - - - - - - - - 0.00%Banquet & Meeting - - - - - - - - - - - - - 0.00%Other Income 3,953 4,449 3,430 4,291 4,491 3,462 2,683 4,096 4,442 4,083 3,181 3,328 45,888 2.09%Total Revenues 207,136 226,302 176,016 205,117 217,591 168,054 128,767 198,640 212,068 193,212 138,889 127,710 2,199,503 100.00%
Departmental Expenses
Room Division Expenses 46,426 50,722 39,451 45,973 48,769 37,666 28,861 44,522 47,531 43,305 31,130 28,624 492,981 22.41%Food & Bev Cost 9,619 10,509 8,174 9,525 10,104 7,804 5,980 9,224 9,848 8,972 6,450 5,930 102,139 4.64%Other Operated Departments - - - - - - - - - - - - - 0.00%Total Department Exp. 56,045 61,231 47,625 55,499 58,874 45,470 34,841 53,746 57,379 52,277 37,579 34,554 595,119 27.06%
Departmental Profit 151,091 165,072 128,391 149,619 158,717 122,584 93,927 144,894 154,689 140,934 101,310 93,155 1,604,384 72.94%
Undistributed Operating Expenses
Administrative & General 12,264 13,399 10,421 12,144 12,883 9,950 7,624 11,761 12,556 11,439 8,223 7,561 130,226 5.92%Information & Telecommunication 1,144 1,250 973 1,133 1,202 929 711 1,098 1,172 1,068 767 706 12,152 0.55%Marketing Costs 8,335 9,107 7,083 8,254 8,756 6,763 5,182 7,994 8,534 7,775 5,589 5,139 88,511 4.02%Franchise Fees 23,870 26,079 20,284 23,637 25,075 19,366 14,839 22,891 24,438 22,265 16,005 14,717 253,467 11.52%Utilities /Energy Costs 9,507 10,387 8,079 9,415 9,987 7,714 5,910 9,117 9,734 8,868 6,375 5,862 100,955 4.59%Maintenance & Operations 2,176 2,378 1,849 2,155 2,286 1,766 1,353 2,087 2,228 2,030 1,459 1,342 23,109 1.05%Total Undistrib. Expenses 57,297 62,599 48,689 56,739 60,189 46,487 35,619 54,947 58,662 53,446 38,419 35,327 608,421 27.66%
Management Fees - - - - - - - - - - - - - 0.00%FF&E Reserves - - - - - - - - - - - - - 0.00%Total Management & Reserves - - - - - - - - - - - - - 0.00%
Fixed Expenses
Insurance 4,160 4,545 3,535 4,119 4,370 3,375 2,586 3,989 4,259 3,880 2,789 2,565 44,170 2.01%Real Estate Taxes 11,308 12,355 9,609 11,198 11,879 9,175 7,030 10,845 11,578 10,548 7,583 6,972 120,080 5.46%
Total Fixed Expenses 15,468 16,899 13,144 15,317 16,249 12,550 9,616 14,834 15,836 14,428 10,372 9,537 164,250 7.47%
Total Expenses 128,810 140,729 109,458 127,555 135,312 104,507 80,076 123,527 131,878 120,151 86,370 79,418 1,367,790 62.19%
Net Operating Profit 78,326 85,573 66,558 77,562 82,279 63,547 48,692 75,113 80,191 73,060 52,519 48,292 831,713 37.81%
Mortgage Payments (Est) 1st 54,040 54,040 54,040 54,040 54,040 54,040 54,040 54,040 54,040 54,040 54,040 54,040 648,476 29.48%Mortgage Payment SBA 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00%
Net Income 24,286 31,533 12,518 23,523 28,239 9,508 (5,348) 21,073 26,151 19,021 (1,521) (5,748) 183,236 8.33%Debt Coverage Ratio After Mortgage 1.28
HISTORICAL P&L | 5 YEARSH O T E L B R O K E R S O F A M E R I C A
98 Room Staybridge Suites The Colony, TX 4 YEAR PROFIT / LOSS BUDGET 2019 to 2022
1st. Year 3.0% Inc Occ 3.0% Inc Occ 1.0% Inc Occ 1.0% Inc Occ3.0% Inc ADR 3.0% Inc ADR 2.0% Inc ADR 2.0% Inc ADR
T-12 May 2020
Gross Ratios
Per Avail Room
2021Gross Ratios
Per Avail Room
#REF!Gross Ratios
Per Avail Room
2022Gross Ratios
Per Avail Room
2023Gross Ratios
Per Avail Room
Occupancy 60.94% 62.77% 64.65% 65.30% 65.95%Average Room Rate $98.53 $101.48 $104.53 $106.62 $108.75
Rev Par 60.04 63.70 67.58 69.62 71.72
Departmental Revenues
Rooms 2,153,614 97.91% 21,976 2,278,527 97.97% 23,250 2,417,289 98.03% 24,666 2,490,291 98.07% 25,411 2,565,498 98.11% 26,179 Food & Beverage - 0.00% - - 0.00% - - 0.00% - - 0.00% - - 0.00% - Banquet & Meeting - 0.00% - - 0.00% - - 0.00% - - 0.00% - - 0.00% - Other Income 45,888 2.09% 468 47,136 2.09% 481 48,550 2.09% 495 49,035 2.09% 500 49,526 2.09% 505 Total Revenues 2,199,503 100.00% 22,444 2,325,663 100.00% 23,731 2,465,839 100.00% 25,162 2,539,327 100.00% 25,911 2,615,024 100.00% 26,684
Departmental Expenses
Room Division Expenses 492,981 22.41% 5,030 510,692 22.41% 5,211 541,794 22.41% 5,529 558,156 22.41% 5,695 575,012 22.41% 5,867 Food & Bev Cost 102,139 4.64% 1,042 107,997 4.64% 1,102 114,506 4.64% 1,168 117,919 4.64% 1,203 121,434 4.64% 1,239 Other Operated Departments - 0.00% - - 0.00% - - 0.00% - - 0.00% - - 0.00% - Total Department Exp. 595,119 27.06% 6,073 618,690 27.06% 6,313 656,300 27.06% 6,697 676,075 27.06% 6,899 696,446 27.06% 7,107
Departmental Profit 1,604,384 72.94% 16,371 1,706,973 72.94% 17,418 1,809,539 72.94% 18,465 1,863,252 72.94% 19,013 1,918,578 72.94% 19,577
Undistributed Operating Expenses
Administrative & General 130,226 5.92% 1,329 137,695 5.92% 1,405 145,995 5.92% 1,490 150,346 5.92% 1,534 154,828 5.92% 1,580 Information & Telecommunication 12,152 0.55% 124 12,850 0.55% 131 13,624 0.55% 139 14,030 0.55% 143 14,448 0.55% 147 Marketing Costs 88,511 4.02% 903 93,588 4.02% 955 99,229 4.02% 1,013 102,186 4.02% 1,043 105,232 4.02% 1,074 Franchise Fees 253,467 11.52% 2,586 268,006 11.52% 2,735 284,159 11.52% 2,900 292,628 11.52% 2,986 301,351 11.52% 3,075 Utilities /Energy Costs 100,955 4.59% 1,030 106,746 4.59% 1,089 113,180 4.59% 1,155 116,553 4.59% 1,189 120,028 4.59% 1,225 Maintenance & Operations 23,109 1.05% 236 24,434 1.05% 249 25,907 1.05% 264 26,679 1.05% 272 27,475 1.05% 280 Total Undistrib. Expenses 608,421 27.66% 6,208 643,319 27.66% 6,564 682,094 27.66% 6,960 702,422 27.66% 7,168 723,361 27.66% 7,381
Management Fees - 0.00% - - 0.00% - - 0.00% - - 0.00% - - 0.00% - FF&E Reserves - 0.00% - - 0.00% - - 0.00% - - 0.00% - - 0.00% - Total Management & Reserves - 0.00% - - 0.00% - - 0.00% - - 0.00% - - 0.00% -
Fixed Expenses
Insurance 44,170 2.01% 451 46,704 2.01% 477 49,519 2.01% 505 50,995 2.01% 520 52,515 2.01% 536 Real Estate Taxes 120,080 5.46% 1,225 126,968 5.46% 1,296 134,620 5.46% 1,374 138,632 5.46% 1,415 142,765 5.46% 1,457
Total Fixed Expenses 164,250 7.47% 1,676 173,671 7.47% 1,772 184,139 7.47% 1,879 189,627 7.47% 1,935 195,280 7.47% 1,993
Total Expenses 1,367,790 62.19% 13,957 1,435,680 62.19% 14,650 1,522,533 62.19% 15,536 1,568,124 62.19% 16,001 1,615,087 62.19% 16,480
Net Operating Profit 831,713 37.81% 8,487 889,983 37.81% 9,081 943,306 37.81% 9,626 971,203 37.81% 9,910 999,937 37.81% 10,203
Mortgage Payments (Est) 1st 648,476 29.48% 6,617 648,476 29.48% 6,617 648,476 29.48% 6,617 648,476 29.48% 6,617 648,476 29.48% 6,617 Mortgage Payment SBA 0 0.00% 0 0 0.00% 0 0 0.00% 0 0 0.00% 0 0 0.00% 0
Net Income 183,236 8.33% 1,870 241,507 8.33% 2,464 294,829 8.33% 3,008 322,727 8.33% 3,293 351,460 8.33% 3,586 Debt Coverage Ratio After Mortgage 1.28 1.37 1.45 1.50 1.54
SELLER’S P & LH O T E L B R O K E R S O F A M E R I C A
Line item Dept. Description T-12 APR 2020 Adjustments /
Add Backs Adjusted Amount % of Revenue Comments
INCOME Room Revenue Other Revenue
Room Revenue 2,226,079.00$ 2,226,079 97.82%Other Revenue 49,635.09$ 49,635 2.18%Total Revenue 2,275,714.09$ - 2,275,714 100.00%
EXPENSE
P&L Line item P&L Expenses Add Backs Adjusted Expenses % of Revenue Reason
Payroll Payroll 419,949.50$ 419,950 18.45%
Payroll Payroll Officer 35,446.28$ 35,446 - 0.00% Owner's Drawback
Payroll Taxes Payroll Taxes 36,933.17$ 36,933 1.62%
Payroll Payroll Processing 4,289.74$ 4,290 0.19%
Payroll Health Inn Benefits 20,518.51$ 12,764 7,754 0.34% Owner's Insurance
Laundry Supplies Laundry Supplies 3,011.74$ 3,012 0.13%
Laundry Supplies Rooms Expense 38,123.50$ 38,124 1.68%
FOOD & BEV Food and Beverage 105,677.60$ 105,678 4.64%
TOTAL ROOMS DIVISION EXP 663,950.04$ 48,210.43$ 615,739.61$ 27.06%
Admin Bad Debt / Charge backs 9,500.08$ 9,500 - 0.00% Mismanaged Revenue Collection
Admin Legal and Accounting 29,943.06$ 23,899 6,045 0.27% Legal
AdminUniforms 1,673.53$
1,674 0.07%MISC CREDIT (3,398.13)$
(3,398) -0.15%
AdminBank Charges 35.00$
35 0.00%
AdminOwner Vehicle 13,554.57$
13,555 - 0.00% Owner's Vehicle
AdminCustomer Appreciation 50.00$
50 0.00%
AdminEmployee Appreciation 2,731.75$
2,732 - 0.00%
AdminShuttle 29,066.28$
29,066.28$ - 0.00% Shuttle Not Required
AdminCredit Card Terminal Fees 62,552.40$
62,552 2.75%
AdminMemberships 450.00$
450 0.02%
AdminContract Labor 72,707.44$
22,707 50,000 2.20% Shared GM
AdminRecruiting Expense 263.57$
264 0.01%
AdminLicense, Dues, Fees 2,375.00$
2,375 0.10%
AdminOffice Supplies 8,339.18$
8,339 0.37%
AdminTraining 4,620.00$
4,620 0.20%
AdminNewspaper 1,732.55$
1,733 0.08%
TOTAL ADMIN 236,196.28$ 101,458.24$ 134,738.04$ 5.92%
Info & Tel Internet 8,512.44$ 8,512 0.37%
Info & Tel Telephone 4,061.09$ 4,061 0.18%
TOTAL INFO & TELE 12,573.53$ -$ 12,573.53$ 0.55%
Marketing Commissions 63,317.73$ 63,318 2.78%
Marketing Sales Expense 20,226.31$ 20,226 0.89%
Marketing Advertising 863.92$ 864 0.04%
Marketing Agent Commission 7,169.75$ 7,170 0.32%
TOTAL MARKETING 91,577.71$ -$ 91,577.71$ 4.02%
Franchise 2.5% Combo Fee 55,918.24$ 55,918 2.46%
Franchise Booking Fee 902.14$ 902 0.04%
Franchise MISC 1,444.84$ 1,445 0.06%
Franchise IHG Franchise Expense 96,957.95$ 96,958 4.26%
Franchise Royalty 107,026.43$ 107,026 4.70%
FRANCHISE 262,249.60$ -$ 262,249.60$ 11.52%
Utilities Television/Cable Expense 23,347.24$ 23,347 1.03%
Utilities Natural Gas 5,083.91$ 5,084 0.22%
Utilities Electric 40,121.09$ 40,121 1.76%
Utilities Water 31,734.88$ 31,735 1.39%
Utilities Sewer 4,166.42$ 4,166 0.18%
TOTAL UTILITIES 104,453.54$ -$ 104,453.54$ 4.59%
Maint & Operations Repairs and Maintenance 4,638.78$ 4,639 0.20%
Maint & Operations Landscaping 7,930.00$ 7,930 0.35%
Maint & Operations Elevator Expense 4,025.32$ 4,025 0.18%
Maint & Operations Fire Monitoring 720.00$ 720 0.03%
Maint & Operations Pest Control 2,750.52$ 2,751 0.12%
Maint & Operations Pool 3,845.05$ 3,845 0.17%
TOTAL MAINT & OPERATIONS 23,909.67$ -$ 23,909.67$ 1.05%
MANAGEMENT FEES 47,965.78$ 47,965.78$ - 0.00% ADD BACK to Normalize to 3 %
FF&E RESERVES - 0.00%
INSURANCE Insurance General 60,700.82$ 15,000 45,701 2.01% Excessive Insurance
PROPERTY TAXES 124,240.63$ 124,241 5.46%
Mortgage - - 0.00% Normal Add Back
Interest - - 0.00% Normal Add Back
Dep-Building - - 0.00% Normal Add Back
Depreciation - - 0.00% Normal Add Back
Amortization - - 0.00% Normal Add Back
TOTAL MORTGAGE & DEPRECIATION -$ -$ -$ 0.00%
-
Total Expenses 1,627,817.60$ 212,634.45$ 1,415,183.15$ 62.19%
Net Operating Income 647,896.49$ (212,634.45)$ 860,530.94$ 37.81%
STR REPORTH O T E L B R O K E R S O F A M E R I C A
STR REPORTH O T E L B R O K E R S O F A M E R I C A
STR REPORTH O T E L B R O K E R S O F A M E R I C A
A U S T I N A I R P O R T
MARKET OVERVIEWH O T E L B R O K E R S O F A M E R I C A
STAYBRIDGE SUITESDALLAS - THE COLONY
DALLAS, TEXASAREA OVERVIEW
MARKET OVERVIEW
The Dallas metro division has the sixth-largest population in the U.S. with 4.9 million people. Dallas has developed a strong industrial and financial sector, as well as becoming a major inland port, due largely to the presence of Dallas/Fort Worth International Airport, one of the largest and busiest airports in the world. The city is home to University of Texas Southwestern Medical School, Texas Woman's University, University of North Texas at Dallas, Paul Quinn College as well as a number of religious a�liated and community colleges. The most notable event held in Dallas is the State Fair of Texas, which has been held each year at Fair Park since 1886, bringing an estimated $350 million to the city's economy annually. The Red River Shootout, which pits the football teams of University of Texas at Austin and University of Oklahoma against one another at the Cotton Bowl, also brings significant crowds to the city.
Dallas is a cosmopolitan city known for its high concentration of restaurants and shopping centres. Skyscrapers, such as Bank of America Plaza (1985) and Reunion Tower (1978), create a striking night skyline. The population density is unusually low for a major metropolitan area, reflecting the predominance of single-family homes (about two-thirds of all dwelling units). The city is ethnically diverse, with less than half its population being of European descent. About one-fourth of the residents are African American, and more than one-third are Hispanic. Dallas became well-known in popular culture as the setting for the eponymous television drama series (originally broadcast 1978–91); the ranch where the show was filmed is now a tourist attraction and convention centre.
SUBHASH NAIK | Making Deals Happen
661.978.3109 | [email protected] | CalBRE #01717362H O T E L B R O K E R S O F A M E R I C A
America’s Hotel Brokers’ Broker
MAJOR AREA EMPLOYERS
ECONOMY
MARKET OVERVIEW
Dallas’s modern economy is well diversified. A top global wholesale market, the city is the home of the Dallas Market Center, one of the world’s largest wholesale merchandise complexes. In addition, it is the world headquarters of the U.S. Army and Air Force Exchange Service, which provides goods and services to military personnel. Wholesale and retail trade combine with services (particularly business, financial, and health) to form the backbone of the economy. Dallas is the leading banking, financial, and trade centre for the Southwest, and some 6,000 companies have their corporate headquarters there. The city is also a busy convention centre and a hub of airline services. It is a well-known medical centre; the headquarters of the American Heart Association is there, as are the Texas A&M College of Dentistry and the University of Texas Southwestern Medical Center at Dallas.
Dallas has one of the country’s largest concentrations of telecommunications and high-technology manufacturing and services companies. The top technology fields include software production, computer services, and manufacturing of computer hardware, semiconductors, and wireless communication equipment. Food processing, publishing, printing, and advertising are also important. Clothing manufacture is less significant than in the past, but the city is still known as a regional fashion and women’s apparel centre.
America’s Hotel Brokers’ Broker
AMR Corporation (American Airlines)
Bank of America Corp.
Texas Health Resources Inc.
Dallas ISD
Baylor Health Care System
AT&T
Lockheed Martin Aeronautics Co.
JP Morgan Chase & Co.
UT-Southwestern Medical Center
City of Dallas
HCA North Texas
24,700 EMPLOYEES
20,000 EMPLOYEES
19,230 EMPLOYEES
18,314 EMPLOYEES
17,097 EMPLOYEES
15,800 EMPLOYEES
14,126 EMPLOYEES
13,500 EMPLOYEES
13,122 EMPLOYEES
12,836 EMPLOYEES
12,000 EMPLOYEES
SUBHASH NAIK | Making Deals Happen
661.978.3109 | [email protected] | CalBRE #01717362H O T E L B R O K E R S O F A M E R I C A
PROXIMITY TO:
PROXIMITY MAP
SUBHASH NAIK | Making Deals Happen
661.978.3109 | [email protected] | CalBRE #01717362H O T E L B R O K E R S O F A M E R I C A
IRVING, TX
DALLAS, TX
FORT WORTH, TX
WACO, TX
OKLAHOMA CITY, OK
SHREVEPORT, LA
AUSTIN, TX
HOUSTON , TX
SAN ANTONIO, TX
20.4 MILES
21.7 MILES
32.1 MILES
115 MILES
184 MILES
165 MILES
222 MILES
263 MILES
294 MILES
America’s Hotel Brokers’ Broker
DEMOGRAPHICS OVERVIEW
SUBHASH NAIK | Making Deals Happen
661.978.3109 | [email protected] | CalBRE #01717362H O T E L B R O K E R S O F A M E R I C A
America’s Hotel Brokers’ Broker
HOTEL BROKERS INC. RECENT SALES
HotelComfort SuitesRamadaCandlewood SuitesCountry InnHampton InnHampton Inn Best Westen Hampton InnHoliday Inn ExpressComfort SuitesCountry Inn & SuitesHampton InnQuality InnBest Western PLUSComfort InnRodeway InnCountry Inn & SuitesTowne Place By MarriottHoliday Inn ExpressComfort SuitesBest Western PLUSBaymontClarion InnHilton Garden InnHamptonHamptonCandlewoodHamptonBest WesternHI ExpressSuper 8HamptonHamptonLa QuintaHamptonHampton
Price $6,400,000$5,000,000$4,650,000$8,350,000$8,600,000 $7,700,000 $2,862,200 $11,250,000 $4,400,000 $6,400,000 $8,150,000 $9,800,000 $8,800,000 $9,900,000 $6,400,000 $2,150,000 $8,800,000 $8,550,000 $5,750,000 $5,650,000 $6,400,000 $6,500,000 $4,100,000 $11,000,000 $9,000,000 $7,500,000 $8,750,000 $7,150,000 $6,350,000 $8,700,000 $4,600,000 $8,900,000 $9,990,000 $9,300,000 $7,500,000 $6,650,000
Per Key $52,083$68,085$58,861$75,909$107,500 $97,468 $68,148 $142,405 $73,333 $116,364 $101,875 $124,051 $58,667 $99,000 $85,333 $36,441 $80,000 $106,875 $82,143 $73,377 $95,522 $85,526 $40,594 $78,571 $104,651 $104,167 $105,422 $102,143 $67,553 $127,941 $115,000 $134,848 $136,849 $140,909 $107,143 $100,758
CitySan AntonioHoustonO’FallonDallasTehachipi Nacogdoches PostMc KinneyDecatur Bakersfield[DFW] IrvingKyleIrvingOrlandoOverland parkGatesvilleDallasFort- WorthWaxahachieWarner RobinsOlatheDallasPuebloShreveportNatchezHuttoOdessaPearsallYucca ValleyKennedyKarnes CityPleasantonCotullaPearsallBeevilleCenter
MSASan AntonioHoustonSt. LouisDallasBakersfield HoustonLubbockDallasDallas BakersfieldDallasAustinDallasOrlandoKansas CityWacoDallasDallasDallasAtlantaKansas CityDallasColorado SpringsShreveportNatchezAustinOdessaSan AntonioPalm SpringsSan AntonioSan AntonioSan AntonioSan AntonioSan AntonioSan AntonioHouston
StateTXTXILTXCA TX TXTXTX CATXTXTXFLKSTXTXTXTXGAKSTXCOLAMSTXTXTXCATXTXTXTXTXTXTX
StatusIn EscrowIn EscrowSoldSoldSoldSoldSoldSoldSoldSold SoldSoldSoldSoldSoldSoldSoldSoldSoldSoldSoldSoldSoldSoldSoldSoldSoldSoldSoldSoldSoldSoldSoldSoldSoldSold
AVERAGE PRICE PER KEY HAMPTON & HI EXPRESS : $119,873AVERAGE PRICE PER KEY ALL DEALS : $95,472
SUBHASH NAIK | Making Deals Happen
661.978.3109 | [email protected] | CalBRE #01717362H O T E L B R O K E R S O F A M E R I C A
HOTELS WANTED FOR READY TO GO 1031 EXCHANGE BUYERS HIGH PRICE PER KEY SALES
MAXIMUM 90 DAY LISTINGS | COMPLIMENTARY VALUATION OF YOUR HOTEL |
OUR BROKER FEES ARE BEST IN THE BUSINESS | FULL MARKETING OR CONFIDENTIAL LISTING |
NATIONAL REPRESENTATION TO 20,000 BUYERS | PROFESSIONAL MARKETING AND
PACKAGES | WE COOPERATE WITH ALL BROKERS FOR MAXIMUM EXPOSURE
MAKING DEALS HAPPEN!
THINKING OF SELLING?
SUBHASH NAIK | Making Deals Happen
661.978.3109 | [email protected] | CalBRE #01717362H O T E L B R O K E R S O F A M E R I C A
SUBHASH NAIK | Making Deals Happen
661.978.3109 | [email protected] | CalBRE #01717362H O T E L B R O K E R S O F A M E R I C A
TEXAS ADDENDUM
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STAYBRIDGE SUITES | THE COLONY-DALLAS