Charleston, WV Hotel Portfolio

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Charleston, WV Hotel Portfolio
Best Western Charleston Plaza hotel
Charleston Capitol Hotel (Former Fairfield Inn)
CONFIDENTIAL OFFERING SUMMARY
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1000 & 1010 Washington Street E
Charleston, WV 25301
WWW.CRUREAHOTELS.COM
EXECUTIVE SUMMARY
INVESTMENT OVERVIEW
!CRU Real Estate Advisors Hotels ("CRU REA Hotels") has been retained as exclusive
advisor, to offer for sale the fee simple interest in the 296 guestroom Charleston
West Virginia Hotel Portfolio. The Hotel Portfolio consists of the 160-guestroom Best
Western Charleston Plaza Hotel (the “Hotels” or “Properties”) located at 1010
Washington Street E, Charleston, WV and the 136-guestroom Charleston Capitol
Hotel, formerly the Fairfield Inn (the “Hotels” or “Properties”). The Hotels are
positioned on approximately 3.0± acres of fee simple land and being offered
unencumbered by management.
!The Best Western is a 9-story high rise interior corridor hotel centrally located in
downtown Charleston, West Virginia. The hotel went through an extensive
renovation in 2008 when the hotel was rebranded a Best Western from a Super 8.
The Charleston Capitol Hotel is a 9-story high rise corridor Property that was last
renovated in 2008. The property was was converted to an independent hotel in
December 2013. Both Properties are strategically located directly off I-64 and I-77
and proximate to virtually every major downtown demand generator, making the
Hotels ideally situated in one of the premier hotel locations in all of Charleston and
southern West Virginia. Each guestroom offers complimentary high speed Internet
access, flat screen TV’s. The Properties offer 100% non-smoking guest rooms, free
parking and large outdoor heated swimming pools.
CONFIDENTIAL
CHARLESTON WV HOTEL PORTFOLIO
⎮ 1
INVESTMENT HIGHLIGHTS
!The Portfolio has increased the NOI by roughly 92% since YE 2011 to
Increased NOI and Approximate $6M in Total Revenues
Renovated and Well-Maintained Asset
$1.348,751 (24.8%) in the YE 2013 period . During that time, the
Properties had total revenues of $6M in YE 2012. With a completion of
a new PIP and rebranding, a new owner can reposition the Hotel to
capture a market share in a market that continues to show signs of
improvement and continue to increase the operating efficiencies and
the NOI.
approximately $3M extensive renovation and rebranding. The Best
Western was converted from a Super 8 in 2009 and the Fairfield Inn
was renovated in 2008. During this time, numerous capital
improvements have been completed, including elevator
modernization, major repairs to both roofs, a full renovation to the Best
Western and a soft renovation to the former Fairfield Inn. Both
properties are in good physical condition.
!Great Visibility & Excellent Location
!The Portfolio is located in an excellent
location in downtown
Charleston and close to proximity to numerous demand generators
including Clay Center for the Arts & Sciences, Marshall University,
Charleston Civic Center and the CAMC Hospital. The Properties are
strategically located near Interstate 64 (I-64) and Interstate 77 (I-77),
the areas major thoroughfare.
!Potential Upside - Leased Office or Retail Space
!The Charleston Capitol Hotel includes approximately 5,000 sq. ft. of
potential meeting space, restaurant and/or leased office space. A new
owner can lease our this space for additional income.
!Unencumbered by Management
!The Properties are being offered unencumbered of management,
which will be attractive to owner/operator investor groups that will
have maximum control over the day to day operations of the Property,
and aggressively control costs and implement a more effective yield
management strategy.
CONFIDENTIAL
!Since the properties were purchased, the Hotels have gone through an
!Rebranding / Repositioning Opportunity
!Originally built as a Farifield Inn, the opportunity exists for a new
investor to rebrand the existing interior corridor Charleston Capitol
Hotel to a superior brand with numerous brand options available
including Wyndham Garden, La Quinta, Comfort Inn, Baymont and
aloft Hotel. Additionally, Marriott may be available for approved
Marriott operators. The estimated cost to rebrand/reposition the
Charleston Capitol Hotel is approximately $1.5M for this strong
downtown location hotel.
!Discount to Replacement Cost
!The Property is being offered for sale at a discount to current
replacement cost.
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Portfolio Being Offered for
$13,900,000
CHARLESTON WV HOTEL PORTFOLIO
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BEST WESTERN CHARLESTON PLAZA HOTEL
Address
1010 Washington St. E, Charleston, WV 25301
Building Area:
County
Kanawha County
Foundation
Parcel No.
The property is assessed together with the
parcel numbers for both hotels are as follows:
11-10-0042-0000-0000, 11-10-0043-0000-0000,
11-10-0044-0000-0000, 11-10-0025-0000-0000
and 11-10-0036-0000-0000.
Structure
Façade
Exterior façade is a title block system
Windows
Windows are double-paned aluminum framed
Drywall and concrete block with paint and vinyl
covering
The Roof is flat with an asphalt membrane.
membrane
Central HVAC in lobby. Guestrooms contain
GE Zoneline through-wall units.
Ownership Interest
Fee-Simple
No of Rooms
160
Interior Walls
Year Built
1971
Roof
Site Area
1.00± acre (43,560 sq. ft.)
HVAC
Franchise
Best Western
Management
Unencumbered by Management
Floors/Layout
One Building Consisting of Nine Floors
Food and Beverage
Complimentary Continental Breakfast
Other Facilities &
Amenities
350 sq. ft. meeting room
Business Center
Fitness Center
Seasonal Outdoor Heated Swimming Pool
Activity Desk
Complimentary In-Room Wireless Internet
Mini Fridge in all Guestrooms
CONFIDENTIAL
The gross building area is approximately
126,000 square feet
The foundation system is poured in place,
reinforced concrete
The reinforced concrete structure also features
sections on concrete block
Elevators
One Dover 2,500-pound guest elevators
Fire Protection
Hardwired smoke alarms in guestrooms and
sprinklers throughout
Two Milnor 55-pound washers. Three Unimac
Dryer 50-pound dryers
Laundry
Parking
The property includes approximately 66
surface parking spaces. Additionally, there is a
cross-parking agreement between the Hotels
Potential Office
Space Rental
Approximately 5,000 sq. ft. of office space is
available for potential lease
CHARLESTON WV HOTEL PORTFOLIO
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PROPERTY DESCRIPTION BEST WESTERN CHARLESTON PLAZA HOTEL
Location
Strategically located in downtown Charleston, the Best Western Charleston Plaza
Hotel is situated on approximately one acre at the intersection of Washington and
Shrewsbury Streets. The Property is conveniently and strategically located just
seconds from on-ramps for both Interstates 64 and 77. This unique hotel location
offers business and leisure travelers excellent lodging accessibility along
Charleston’s most highly traveled corridor. Hotel guests will discover easy access to
Charleston’s major demand generators, historic attractions and recreational
opportunities. Both the Clay Center for the Arts and West Virginia Power baseball
park are located less than a mile from the Hotel. The Property is also convenient to
the State Capital, Governor’s Mansion, and the University of Charleston.
!Property Layout and Configuration
The Best Western Charleston Plaza Hotel is position on approximately 1.0± parcel
and is rectangular in shape and oriented in a northeast to southwest manner. The
Hotel is situated at the southwest end of the parcel with approximately 150 feet of
frontage along Washington Street and over 320 feet of frontage along Shrewbury
Street. The main entrance on the northwest side of the Hotel, adjacent to the pool
area. The Hotel features one elevator that is located at the northeast end of the
guestroom tower. The hotel completed an extension renovation and rebranding when it was converted from a Super 8 to the Best Western in
2009.
Access and Visibility
The Best Western is easily visible and accessible from I-64 and I-77. The Property is just a
short drive from Yeager Airport and I-79. The central location of the Hotel means that
guests can access almost anywhere in downtown Charleston in a matter of minutes.
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Guestrooms
!The Hotel offers 160 guestrooms on nine floors. Rooms feature complimentary Internet
GUESTROOM CONFIGURATION
ues
TYPE
No. of Rooms
Avg. Sq. Ft
King
18
325
Double/Double
142
325
Total/Avgerage
160
325
access, AM/FM alarm clock, flat screen TV’s with cable television, coffeemaker, full-size
iron and ironing board, and hairdryer. Guestroom configuration is as detailed in the table
to the right.
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CONFIDENTIAL
CHARLESTON WV HOTEL PORTFOLIO
⎮ 4
CHARLESTON CAPITOL HOTEL
PROPERTY DETAILS
Address
1000 Washington St. E, Charleston, WV 25301
County
Kanawha County
Parcel No.
The property is assessed together with the Best
Western. The parcel numbers for both hotels are
as follows: 11-10-0042-0000-0000,
11-10-0043-0000-0000, 11-10-0044-0000-0000,
11-10-0025-0000-0000 and 11-10-0036-0000-0000.
Building Area:
The gross building area is approximately
81,900 square feet
Foundation
The foundation system is poured in place,
reinforced concrete
Structure
The reinforced concrete structure also features
sections on concrete block
Façade
Exterior façade is a Dryvit system
Windows
Windows are double-paned aluminum frames
Interior Walls
Drywall and concrete block with paint and vinyl
covering
Roof
Flat, rubber aggregate membrane
HVAC
Central HVAC in lobby & breakfast area.
Guestrooms contain GE Zoneline through-wall
units.
Three Dover 2,000-pound guest elevators
Ownership Interest
Fee-Simple
No of Rooms
136
Year Built
1969
Site Area
2.00± acre (87,120 sq. ft.)
Franchise
Independent (Numerous Franchises Available)
Management
Unencumbered by Management
Floors/Layout
One Building Consisting of Nine Floors
Fire Protection
Food and Beverage
Complimentary Hot Breakfast
Laundry
Other Facilities &
Amenities
Outdoor Heated Swimming Pool and Whirlpool
Spa
Complimentary In-Room Wireless Internet Access
Fitness Center
Business Center
100% Non-smoking Hotel
Mechanical System
CONFIDENTIAL
!HVAC Guest Room Units
Elevators
Hardwired smoke alarms in guestrooms and
sprinklers throughout
Two Milnor 55-pound washers. Three
International Dryer 50-pound dryers
Parking
The property includes approximately 153
surface parking spaces. Additionally, there is a
cross-parking agreement between the Hotels
Potential Office
Space Rental
Approximately 5,000 sq. ft. of office space is
available for potential lease
CHARLESTON WV HOTEL PORTFOLIO
⎮ 5
PROPERTY DESCRIPTION
CHARLESTON CAPITOL HOTEL
Location
Strategically located in downtown Charleston, the Charleston Capitol
Hotel (former Fairfield Inn) is located at the intersection of Washington
and Broad Streets. The Property is conveniently and strategically
located just seconds from on-ramps for both Interstates 64 and 77.
This unique hotel location offers business and leisure travelers
excellent lodging accessibility along Charleston’s most highly traveled
corridor. Hotel guests will discover easy access to Charleston’s major
demand generators, historic attractions and recreational opportunities.
Both the Clay Center for the Arts and West Virginia Power baseball
park are located less than a mile from the Hotel. The Property is also
convenient to the State Capital, Governor’s Mansion, and the
University of Charleston. The Town Center Mall, downtown’s major
retail and food and beverage attraction, is located within half a mile of
the Hotel and the Southridge Centre’s retail and corporate
components are conveniently located approximately five miles south
of the Hotel.
!Property Layout and Configuration
The Charleston Capitol Hotel since January 2014, is position on approximately 2.0± parcel and is rectangular in shape and oriented in a northeast
to southwest manner. The Hotel is situated at the southwest end of the parcel with approximately 160 feet of frontage along Washington Street
and over 550 feet of frontage along Broad Street. The main entrance on the northeast side of the Hotel offers easy access to the breakfast area,
elevators, and fitness center. The Hotel’s exterior pool area is located on the northeast side of the Hotel along Broad Street and is accessible
through the lobby. The majority of the Hotel’s frontage along Washington Street is composed of potential for leased retail space. The basement
was formerly used as meeting and function space prior to being converted to a Fairfield Inn in 1999 and is now utilized as storage space that is
inaccessible to guests.
Access and Visibility
The former Fairfield Inn is easily visible and accessible from I-64 and I-77. The Property is
just a short drive from Yeager Airport and I-79. The central location of the Hotel means that
guests can access almost anywhere in downtown Charleston in a matter of minutes.
GUESTROOM CONFIGURATION
ues
!Guestrooms
!The Hotel offers 136 guestrooms on nine floors. Rooms feature complimentary Internet
King
86
325
Double/Double
50
325
access, AM/FM alarm clock, cable television, coffeemaker, full-size iron and ironing board,
and hairdryer. Guestroom configuration is as detailed in the table to the right.
Total/Avgerage
136
325
TYPE
No. of Rooms
Avg. Sq. Ft
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CONFIDENTIAL
CHARLESTON WV HOTEL PORTFOLIO
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MARKET OVERVIEW
The guided tour takes visitors on a journey through the life of Cabot Yerxa and his adventure
through the collected artifacts dating over 100 years. Located in Kanawha County in the
southwest portion of West Virginia, the Property is within the Charleston, West Virginia MSA. In
addition to Kanawha County, the Charleston, WV MSA also includes Putnam County. Charleston
is located at the confluence of the Kanawha and Elk Rivers in close proximity to the Appalachian
Mountains. Charleston is the capital of West Virginia, the county seat of Kanawha County and a
model city for the state. The-e metropolitan Charleston area is comprised of Kanawha and
Putnam Counties and encompasses nearly 1,300 square miles. Charleston was founded in 1794,
and was designated as the state capital in 1870. -e city benefits from its location within 500 miles
of 60% of the nation’s major markets. Charleston is centrally located in the southeastern part of
the United States, and lies approximately 500 miles northeast of Atlanta, Georgia, 360 miles west
of Washington, DC, 250 miles south of Cleveland, Ohio, and 490 miles southeast of Chicago,
Illinois. Situated at the convergence of three major interstate highways, Charleston has a central
location and is easily accessible. In contrast to much of the state, Charleston benefits from a
more diverse and relatively stable economy. Charleston represents the state’s economic and
cultural hub. The city’s economy is mainly driven by the government sector and the chemical
industry.
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Airports - Charleston is served by Yeager Airport, which is located just over two miles northeast of downtown
Charleston. The airport is serviced by five major airlines including American Airlines, Delta, Spirit Airlines, United and
US Airways.
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!Highways - Charleston is strategically
located at the intersection of three major interstates.
Providing easy access from regional metropolitan centers, Interstates 64, 77, and 79 all converge
just north of downtown Charleston. The major east/west artery through the area, I-64 stretches
from Missouri to Virginia. I-77
stretches north and south
from Cleveland, Ohio to
Columbia, South Carolina,
and I-79 goes north from
CONFIDENTIAL
CHARLESTON WV HOTEL PORTFOLIO
⎮ 7
MARKET OVERVIEW
Convention Center - The city of Charleston is served by the Civic Center Convention Center, located on Civic Center Drive, less than a mile from
the property. The Charleston Civic Center hosts the majority of the state’s premier entertainment, sporting and corporate events. The campus
features more than 150,000 square feet of flexible meeting
and exhibit space. The Civic Center campus features four
versatile venues including the 30,000 sq. ft. Civic Center
Coliseum, the Municipal Auditorium, the Civic Center
Little Theater, and the Charleston Convention Center. The
three West Virginia Rooms located on the first level offer a
total of over 6,500 square feet, enabling accommodations
for up to 400 in a theater-style setting when configured
together. Five parlors on the center’s lower level offer
from 1,300 to 3,200 square feet of theater, classroom or
conference seating for up to 900. The eight, full-service
conference rooms on the facility’s second level combine
for up to 3,800 square feet of conference space to a group
of 360 people, or as little as 500 square feet for a small
conference of 15 people.
!Area Demand Generators - Downtown Charleston is home to a diverse mix of business and leisure
demand generators. The attractions listed below are just are few of those that visitors are drawn to in and
around the city of Charleston.
! Clay Center for the Art & Sciences
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• West Virginia State Building
• Tanger Outlet Center
• Numerous Universities including; University
of Charleston, Marshall University
• CAMC Hospital, Women’s and Children’s
Memorial and General Hospital’s
• Charleston Civic Center
• 2,500 seat riverfront amphitheater
• Tri-State Racetrack & Gaming
• West Virginia Cultural Center
• West Virginia Power Baseball (4,500 seat
baseball park - Class A affiliate of Pittsburgh
Pirates)
CONFIDENTIAL
CHARLESTON WV HOTEL PORTFOLIO
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DISCLAIMER
This Confidential Investment Offering Memorandum (“Memorandum”), which is intended solely for your limited use and benefit in
determining whether you desire to express any further interest in participating in the acquisition of the Charleston West Virginia Hotel
Portfolio (the “Properties, Property” or “Hotel, Hotels”) located in Charleston, WV. By accepting this Memorandum, the recipient agrees to
comply strictly with the terms and conditions of the Confidentiality Agreement previously executed and delivered to CRU Real Estate
Advisors Hotels by the Recipient with respect to this Memorandum and all information contained herein, and to use this Memorandum only
for the purpose of evaluating the offering made hereby.
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This Memorandum was prepared by CRU Real Estate Advisors Hotels and has been reviewed by the Owner. It contains select information
pertaining to the Property and does not purport to be all-inclusive or to contain all of the information, which prospective investors may
desire. It should be noted that all the market analysis projections are provided for general reference purposes and are based on
assumptions relating to the general economy, competition and other factors beyond our control and, therefore, are subject to material
variation. The material contained in this Memorandum is provided solely to assist the Recipient in determining whether it is interested in
making an investigation or evaluation concerning a potential purchase of the Property.
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More detailed information and an opportunity to inspect material related to the Property will be made available to interested and qualified
prospective investors. Neither the Owner nor CRU Real Estate Advisors Hotels nor any of their respective officers have made any
representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no
legal commitments or obligations shall arise by reason of this Memorandum or its contents. The Agent, Owner, and the Manager reserve
the right to engage in discussions or negotiations with one or more recipients or other perspective investors at any time without notification
to, or other obligation to, any other Recipient or prospective investor. The offering is subject to change in terms or termination without
notice. The Owner and the Manager will remain free to operate the Property in their sole and absolute discretion during the evaluation and
offering process, including the taking of such actions, whether within or outside of the ordinary course of business, which the Owner or the
Manager shall deem necessary, prudent or desirable.
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The Agent reserves the right to require the return of this Memorandum and any other material provided to the Recipient at any time.
Photocopying or other duplication of the Investment Offering Memorandum in part or entirety is not authorized.
CONFIDENTIAL
CHARLESTON WV HOTEL PORTFOLIO
⎮ 9
CRU Real Estate Advisors Hotels
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WWW.CRUREAHOTELS.COM
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Orange County - Headquarters
3191 Red Hill Avenue, Suite 250
Costa Mesa, CA 92626
714.760..9880 (o) ⎮ 714.760.9881 (f)
Steven L. Senft
Principal
310.795.4533 (m)
[email protected]