TAMPA - USF - BUSCH GARDENS

Transcription

1 TAMPA - USF - BUSCH GARDENS Opportunity to acquire a recently developed, well-performing asset adjacent to Busch Gardens and less than five minutes from the University of South Florida, Moffitt Cancer Center, James A. Haley Veterans Hospital, and Shriners Hospitals for Children.

2 THE OFFERING 2 Holliday Fenoglio Fowler, L.P. ( HFF ) is pleased to offer an exclusive opportunity to acquire the fee simple interest in the 123-key Holiday Inn Express & Suites Tampa - USF - Busch Gardens ( the Property or Hotel ). The Property is in a prime location off of I- and in close proximity to many of Tampa s main demand drivers, including Busch Gardens and the University of South Florida. Opened in late 2008, the Hotel offers a range of impressive amenities, including a 24-hour fitness center, a business center, and an outdoor heated pool, among others. The Property presents an opportunity to acquire a well-performing asset with a tremendous location and established brand. After completing the minimal change of ownership PIP, the Hotel will qualify for a 15-year license agreement with IHG. PROPERTY OVERVIEW Year Built 2008 Guestrooms 123 Address 2807 E. Busch Blvd Tampa, FL Meeting Space 725 SF Amenities Heated Outdoor Pool Fitness Center Free Internet Service Complimentary Breakfast Business Center Florida Green Lodging Designated Ownership Structure Fee-Simple Offering Process Process and Format The Property is offered on an as-is, where is basis. Prospective purchasers are encouraged to evaluate the merits of this investment opportunity thoroughly and review the Property proactively and aggressively prior to submitting a proposal. Following distribution of the Offering Materials, HFF is available to assist potential investors in the review of the information contained within. HFF strongly recommends scheduling a property tour with a member of the transaction team noted on the last page. Offering Materials A due diligence website, which includes HFF s Offering Memorandum and pertinent source documents, will be available to prospective purchasers upon execution of HFF s confidentiality agreement. Financing The Property will be sold on an all-cash basis without contingency for financing. However, HFF is actively discussing the transaction with lenders and can provide additional insight regarding potential financing quotes for the Property.

3 INVESTMENT HIGHLIGHTS Shriners Hospitals for Children WESTCHASE Proximate to Major Demand Generators 586 Linb University of South Florida h Av EGYPT LAKE TAMPA INTERNATIONAL AIRPORT 574 Bays Hillsborough Avenue EAST TAMPA YBOR CITY 4 TAMPA nd 22 re St et PETER O KNIGHT AIRPORT 301 Selmon Expressway 41B ridge PALM RIVER-CLAIR MEL SOUTH TAMPA iam 573 Hillsborough Bay Tam 75 66th Street Starkey Road ail i Tr 49th Street e ridg Education: Less than two miles north of the Property is the Universityndof y BSouth Ga Florida. With an enrollment of nearly 48,000 students, USF is one of the largest universities in the United States. 301 Dr Martin Luther King Jr Blvd Tamiami Trail ide B Medical: There is a prominent healthcare cluster less than three miles north of HIGHPOINT the Hotel that includes Moffitt Cancer Center, Shriners Hospitals Old Tampa Bay for Children, and James A. Haley Veterans Hospital, among others. Moffitt Cancer Center is the #1 Bay Drive Center in Cancer 686the Southeast, according to US News & World Report, employs over 4,300 people, and generates over $1.8 billion in direct economic output. The ST PETERSBURGCLEARWATER James A. Haley Veterans Hospital consists of 415 beds. In 2013, the hospital INTERNATIONAL AIRPORT Ulmerton treatedroad over 89, veterans. TEMPLE TERRACE 583 NORTHWEST TAMPA Busch Gardens 56th Street LOWRY PARK ZOO 5 75 Nebraska Avenue 580 Fowler Avenue Moffit Cancer Center Adventure Island Florida Avenue Entertainment: Adjacent to the Property is Busch Gardens, a 335-acre Africanthemed animal theme park that attracts over 4 million people each year, ranking it SAFETY 590 most-visited theme parks worldwide. Adventure Island, a water among the top 30 HARBOR park located across the street from Busch Gardens, attracts overa600,000 visitors w y bell Cause p m a C y e each year. Both parks are part of SeaWorld a divison of Blackstone urtn CoEntertainment, 60 Gulf togroup. Bay BlvdOther demand generators in the area include Lowry Park Zoo, Florida Aquarium, and the Museum of Science and Industry. 41 Busch Blvd Veterans Expressway COUNTRY McMullen Booth Road Keene Road 584 location off of Interstate, a major encircumferential The Property enjoys an ideal ue highway serving the Tampa OLDSMAR MSA. The Hotel is 10 minutes north of downtown Hil Tampa International Airport, and Tampa and Ybor City, less than 25 minutes from lsb oro 580 ug of Tampa s major demand within a day s drive of over 20 million residents. Many ha ve generators, including Busch Gardens, University of South Florida, and Moffitt TOWN N Cancer Center, are within three miles of the Property. Holiday Inn Express & Suites Tampa USF - Busch Gardens aug Dale Maby Highway EDIN R James A Haley Veterans' Hospital Transportation: The Tampa International Airport, located 25 minutes from the PINELLAS Property, services over 8 million passengers per year and is the third busiest PARK 694 airport in the state of Florida. The Port of Tampa Bay, less than 10 miles south of the Hotel, is a major contributor to the Tampa economy, generating 100,000 jobs MACDILL AIR FORCE BASE GIBSONTON 41 and delivering roughly $15 billion in annual economic impact. 3

4 High-Quality Asset The Holiday Inn Express & Suites Tampa - USF - Busch Gardens is a select service 123-key hotel. The Property offers a range of impressive amenities, including a fully-equipped fitness center, business center, heated outdoor pool, a complimentary breakfast, and complimentary internet service for all guests. The Property was built in late 2008 and features block and concrete plank construction, allowing it to be well-maintained. The asset is being offered on a fee-simple basis to prospective investors. Below Replacement Cost Basis The Property will be offered at a discount to replacement cost, allowing a new owner to acquire a significant key-count with a limited basis. With little threat of new supply due to the relative lack of developable, fee-simple land, the offering is an incredible opportunity to penetrate this market and create long-term value and profitability while simultaneously riding the current recovery. Unencumbered by Management The Property is offered unencumbered by its existing management agreement. The Property is essentially a blank slate where changes to management can serve as a catalyst for long-term growth in revenues, profits, and value. The opportunity to place new management appeals to well capitalized owner-operators as potential investors in the Property. The Property s location near USF and Busch Gardens makes the opportunity very attractive to major lodging owner-operators. Improving Metrics with Tremendous Upside Over the past 12 months, the Holiday Inn Express & Suites Tampa - USF - Busch Gardens has increased Occupancy by 8.6% YOY. The Hotel s September YTD RevPAR index improved from 97.3 in 2013 to in ADR growth has also been strong, with a 6.0% YOY increase in ADR in the twelve months ending in September Although the Hotel has seen increases in Occupancy and ADR in recent years, there is opportunity for improvement as the Hotel is ranked fifth in ADR and RevPAR and sixth in Occupancy out of the seven hotels in its competitive set for the 12 months ending in September A new owner has the opportunity to acquire a blank slate in terms of management and operational potential at an extremely attractive basis, allowing for unprecedented growth in the near term. Rapidly Improving Market The Florida lodging market is one of the most desirable in the world due to incredible weather, strong demand drivers, and favorable performance metrics. The Tampa market, in particular, has shown strong recovery in the last several years, with an increase in RevPAR of over 28.5% from 2010 to RevPAR in the market increased by 12.1% YOY during the 3rd quarter of 2014, and is forecasted to grow by 7.1% in 2015 and 5.9% in 2016, according to PKF. Dominant Brand and Distribution System Holiday Inn Express and Suites is a select service hotel chain within the InterContinental Hotels Group family of brands. InterContinental Hotel Group is one of the world s leading hotel companies, located in nearly 100 countries and territories across the globe. More than 157 million guests choose to stay with IHG year after year. Holiday Inn Express and Suites owners benefit from IHG s typically large brand contribution to hotel sales. 54% of the brand channel contribution comes from IHG s Priority Club which has over 69 million members and is the largest loyalty program in the hospitality industry. IHG is the largest online marketer in the industry, with over 20 million unique visitors monthly. As a result, almost 25% of the IHG channel contribution comes from their branded website. Additionally, IHG markets online in 16 languages and maintains 11 call centers with service in 12 languages. Holiday Inn Express has exceptionally strong brand recognition among Latin American and European tourists, who make up a large and fast-growing segment of travelers visiting Florida for vacation. 4

5 5

6 ORLANDO 300 S. Orange Avenue Suite 1250 Orlando, FL (407) DEBT CONTACT: Michael Weinberg Director (407) Anthony Frogameni Real Estate Analyst (407) Michael Tabor Director (813) TAMPA 101 E. Kennedy Avenue Suite 3905 Tampa, FL (813) Daniel C. Peek Senior Managing Director (813) Preston Reid Real Estate Analyst (813) No warranties or representations, expressed or implied, are madeas to the accuracy of the information contained herein. The property is offered subject to errors, omissions, change of price, rental or other conditions including withdrawal without notice, and will be subject to any special conditions, which may be imposed or made by the owner or Holliday Fenoglio Fowler, L.P. The owner and Holliday Fenoglio Fowler, L.P. reserve the right to accept or reject any and all offers. Copyright 2014 HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales, and commercial loan servicing.