Offering Memorandum - LoopNet

Offering Memorandum

Studios & Suites 4 Less

1411 Skippers Road, Emporia, VA 23847

1 | Studios & Suites 4 Less

CONFIDENTIALITY AND DISCLAIMER

The 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 Colliers International should not be made available to any other person or entity without the written consent of Colliers International. 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. Colliers International has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject substances, PCB'c 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 tenants plan 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, Colliers International has not verified, and will not verify, any of the information contained herein, nor has Colliers International conducted any investigation regarding this matter 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.

NON-ENDORSEMENT NOTICE

Colliers International is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Colliers International . Its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Colliers International 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 COLLIERS INTERNATIONAL AGENT FOR MORE DETAILS.

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TABLE OF CONTENTS

SECTION ONE

INVESTMENT OVERVIEW \\ 6

SECTION TWO

FINANCIAL ANALYSIS \\ 13

SECTION THREE

MARKET OVERVIEW \\ 21

E X C L U S I V E LY LISTED BY

PRASHANT MERCHANT

Senior Vice President | Investment Sales Hospitality Capital Markets Group Mobile - (757) 589 - 6954 Prashant.Merchant@ License: VA 0225226862

NIC WADE

Assistant Vice President | Investment Sales Hospitality Capital Markets Group Mobile - (757) 672 - 3692 Direct - (804) 267- 7231 Nic.Wade@ License: VA 0225242365

SECTION 0NE

INVESTMENT OVERVIEW

5 | Studios & Suites 4 Less

INVESTMENT OVERVIEW

Merchant Hotel Group at Colliers International, as an exclusive representative of the seller, is pleased to present to qualified investors the Studios & Suites 4 Less in Emporia, Virginia, a softbranded Magnuson hotel. The subject property is a 96-room, twostory, exterior-corridor, brick-built asset situated on 9.17 acres. The hotel is located immediately off of Interstate 95 with 44,913 Vehicles Per Day passing by the property.

Current ownership purchased the hotel as a Motel 6 in 2019 as the property was losing its partnership with G6 Hospitality, and subsequently completed a full gut renovation, de-flagging the previous franchise and rebranding as an Independent Property with soft branding and central reservation system access provided Magnuson.

Upon their purchase of the property in 2019, only 30 of the 96 rooms were in rentable condition. Ownership has spent over $600,000 in the property in their first two years of ownership to return all 96 rooms to rentable condition, and more importantly, to make the property competitive with other economy properties in the Emporia market.

Despite being a pandemic year, the property still performed at an Occupancy Penetration Index of approximately 111%, and a RevPAR Penetration Index of 113% in their first full year open as Studios & Suites 4 Less by Magnuson in 2020.

A new investor can substantially benefit from the recent renovation work, which began in Q1 of 2019 and was finished in Q1/Q2 of 2020. These recent renovations will allow an investor to justify a higher ADR, in conjunction with more rooms being online. Statistics reports for the property indicate that revenue is still increasing a result of ramp-up from the recent conversion & renovation, with January and February 2021 RevPAR being significantly higher than January and February 2020 RevPAR. The recent renovations also allow an investor a unique opportunity to capture outstanding Gross Operating Profit margins, as the hotel is turn-key with minimal deferred maintenance. In 2020 the property saw a Gross Operating Profit margin on 51.8% EBIDTA. An owner-operator can continue to run a very efficient operation, as Magnuson Hotels franchise fees are minimal compared to other economy brands.

RENOVATION WORK

New UniMac Washers (2) and Dryers (2) New Guest Coin Laundry Machines New Hot Water Heater New Linens for Bedrooms and Bathrooms in All Rooms New RFID Locks on All Doors New UniFi WiFi System New Avaya Telephone System New PMS Systems (3)

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New or Refurbished PTACs in All Rooms New LED Lighting Throughout the Property New LED Pylon Signage New LVT Flooring in All Rooms New FF&E, Case Goods, & Artwork in All Rooms New Microwaves in All Rooms New Micro-fridges in All Rooms

INVESTMENT OVERVIEW

Vital Data

Property Name Address Price Ownership Type Number of Rooms Number of Buildings Number of Stories Year Built/Renovated Lot Size Franchise Management

Studios & Suites 4 Less Emporia 1411 Skippers Road, Emporia, VA 23847

$3,200,000 Fee Simple

96 1 2 1987 9.17 Acres Independent with Magnuson Hotels Central Reservation System Unencumbered by Third Party Management

Room Type

2 Double Bed Non Smoking 2 Double Bed Smoking King Bed Non Smoking King Bed Smoking King Bed Non Smoking w/Jacuzzi King Bed Non Smoking w/Kitchen King Bed Non Smoking Handicap Conference Room

No. of Rooms

60 11 16 4 2 2 1 1

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PROPERTY AMENITIES

Complimentary WiFi Outdoor Pool Pet Friendly Microwaves in Rooms Fridges in Rooms Flat Screen TVs in Rooms Laundry Facilities Playground on Premises Truck Parking

PROPERTY LOCATION

8 | Studios & Suites 4 Less

STUDIOS & SUITES 4 LESS

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