Fairfield Inn & Suites by Marriott Santa Rosa Sebastopol

1101 Gravenstein Highway South, Sebastopol, CA 95472, US

Execute Confidentiality Agreement

THE OFFERING

HVS, as the sole and exclusive advisory firm to Ownership, is pleased to present the opportunity to acquire the 82-key Fairfield Inn & Suites by Marriott Santa Rosa Sebastopol. This offering presents an excellent opportunity for an investor to acquire a premium-branded Marriott product with an expected franchise term renewal of 20 years, unencumbered by management agreement and located in the high-barriers-to-entry market of Sonoma County, one of the premier wine-producing areas in the world and the largest producer in California’s wine country.

TRANSACTION TIMELINE

All buyers will be required to tour the hotel prior to submitting an offer. We will be hosting property tours on the dates noted below. If you are interested in touring, please contact Eric Guerrero at eguerrero@hvs.com, or +1 (713) 955-0012, or Dan MacDonnell at dmacdonnell@hvs.com, or + 1 (310) 855-4224, to book an appointment.

  • Monday, July 11, 2022, to Wednesday, July 13, 2022 

The call-for-offer deadline is scheduled for Wednesday, July 27, 2022; we will release details soon about the offer requirements. After the initial offer deadline, the top buyers will be invited to submit a second offer in a best and final round. All offers will be evaluated and accepted or rejected at the discretion of the seller.

PROPERTY HIGHLIGHTS

Operational Upside After Renovations

  • Per the April 2022 STR Report, the hotel ranked fourth out of eight competitive hotels in terms of year-to-date RevPAR, which shows significant room for improvement for a stronger operator. Upon completion of the change-of-ownership PIP, an investor will have a newly updated, Marriott-branded, limited-service product with the ability to increase occupancy and ADR by implementing aggressive sales tactics to capture more demand and maximize RevPAR penetration to outperform the other hotels in the competitive set.

  • Prior to the COVID-19 pandemic, the hotel registered an average GOP of 31.5%. Great upside exists for a more “hands on” owner/operator to restructure the Hotel’s operations, establish yield-management strategies, and initiate cost-containment initiatives to maximize RevPAR penetration and NOI flow-through.

Robust Recovery For Drive-To Leisure Markets

  • The hotel’s trailing-twelve-month (TTM) rooms revenue equated to $3,450,000 (rounded) as of March 2022, reflecting a 62.6% increase compared to the same period ending March 2021.

  • Prior to the onset of the COVID-19 pandemic in 2020, the hotel registered a consistent rooms revenue trend from 2016 through 2019, averaging over $4,000,000 annually and yielding an average RevPAR of $135 (rounded).

  • With long summers and mild winters, Sonoma County holds year-round events and festivals throughout the entire calendar year, driving strong and continuous demand to this region.

  • For the TTM period ending in March 2022, demand and revenue levels for this Santa Rosa/Sonoma competitive submarket of hotels rose 44.0% and 118.2%, respectively, compared to the same period ending March 2021.

Highly Sought-After Marriott Franchise

  • Upon completion of the change-of-ownership PIP, an investor can expect a new, 20-year license agreement with Marriott.

  • Fairfield by Marriott’s over 30-year legacy of performance offers owners and franchisees a highly efficient economic model that delivers strong results. As the second-largest Marriott International Inc. brand, Fairfield by Marriott is a proven performer and is growing rapidly. The brand consistently exceeds goals across key metrics, including guest satisfaction, RevPAR, Marriott-channel contribution, and owner satisfaction.

Excellent Location Among Strong Leisure Demand Generators

  • The property has an excellent location along State Highway 116/Gravenstein Highway, approximately six miles west of north/south U.S. Highway 101, a major route that extends through the states of California, Oregon, and Washington.

  • The property benefits from its strategic location in Sebastopol, California, which offers a quieter and more relaxing stay than the larger city of Santa Rosa, as well as closer proximity to Sonoma County’s natural landscape destinations.

  • Major demand generators in the area include the numerous wineries nearby, various world-class restaurants, the Russian River, Bodega Bay, top-notch golf courses, museums, champagne cellars, and activities such as tours and whale watching.

  • Located within the greater San Francisco Bay Area, home to 7.75 million residents, and a relatively short drive from both San Francisco International Airport and Oakland International Airport, which welcomed a combined total of 32.5 million passengers in 2021, the property benefits from a large and affluent surrounding population to support leisure demand.

Management Availability

  • The property is being offered free and clear of any management encumbrances, providing an investor with the flexibility to revamp and improve operational strategies.


Santa Rosa/Sonoma

Submarket

Value-add

Investment Type

82

Keys

1998

Year Built

$155.73

Average Daily Rate

73.9%

Occupancy

$115.16

RevPAR

101.9%

RevPAR Penetration Index

20 Years

Expected Franchise Term

Financials as of Trailing-twelve-months period ending in March 2022

MAP

CONTACT US

Investment Sales Contacts

Eric Guerrero

Managing Director, Partner, Brokerage & Advisory
HVS
Houston
+1 (713) 955-0012
eguerrero@hvs.com

Daniel MacDonnell

Managing Director, Brokerage & Advisory
HVS
Los Angeles
+1 (310) 855-4224
dmacdonnell@hvs.com

Kyle Peterek

Senior Associate, Brokerage & Advisory
HVS
Seattle
+1 (206) 259-7150
kpeterek@hvs.com