Comfort Inn The Pointe

1 Prospect Pointe, Niagara Falls, NY 14303-1100, US

Execute Confidentiality Agreement

THE OFFERING

HVS Brokerage & Advisory, in cooperation with Stephen Rushmore, Jr., as the sole and exclusive advisory firm to ownership, is pleased to present the opportunity to acquire the 110-key Comfort Inn The Pointe, a limited-service hotel in Niagara Falls, New York. This offering presents an excellent opportunity for an investor to acquire a nationally branded hotel asset unencumbered by a management agreement that benefits from an irreplaceable location at the entrance of Niagara Falls State Park. The property is the closest of all hotels to Niagara Falls State Park, which attracts nearly nine million visitors annually who generate roughly $2 billion in tourism spending.

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 Brad Hoban at bhoban@hvs.com or +1 (773) 809-0101 to book an appointment. 

  • Tuesday, October 4, 2022, through Thursday, October 6, 2022

The call-for-offer deadline is Friday, October 14, 2022; we will release details about the offer requirements soon. 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 either accepted or rejected at the discretion of the seller.

Niagara Falls

Submarket

Value-add

Investment Type

110

Keys

1988

Year Built

$93.37

RevPAR

PROPERTY HIGHLIGHTS

Operational Upside for Hands-On Ownership

  • The opportunity exists for a new “hands on” owner to reduce the operating costs significantly and achieve stabilized gross operating profit (GOP) margins near 40.0%, which is in line with our research of similar assets’ operating performance. Comparable operating statements of branded, limited-service hotels in Upstate New York show a GOP margin between 21.2% and 47.8%.
  • The hotel does not have a director of sales (DOS). If the DOS position were added, management could more actively solicit group demand to support higher occupancy in the shoulder and low seasons.
  • The 20,000-square-foot attached retail building, located directly northeast of the property, reflects a unique value-add opportunity to improve NOI through leasing the space to third-party retailers or renovating the space for use by new ownership.
  • Upon completion of the change-of-ownership property improvement plan (PIP), an investor will have a newly updated, limited-service product boasting an unbeatable location, as well as the ability to increase occupancy and average rate (ADR) by implementing aggressive sales tactics to capture more demand and maximize RevPAR penetration during the shoulder and low seasons.

Strong Top-Line Revenues

  • The hotel achieved a trailing-twelve-month (TTM) July 2022 RevPAR of $93.37, reflecting a 55.6% increase over the same period ending July 2021. Moreover, the hotel is outperforming the STAR selected set of competitive hotels, with a 128.9% RevPAR penetration for the TTM period ending July 2022.
  • Prior to the onset of the COVID-19 pandemic in 2020, the hotel’s rooms revenue trend from 2018 through 2019 averaged roughly $3,400,000 annually, yielding an average RevPAR of $85.00 (rounded).
  • The hotel’s July 2022 TTM rooms revenue equated to approximately $3,750,000 (rounded), registering a RevPAR level of $93.37 and surpassing its pre-pandemic performance levels.
  • Given the recent developments and wide distribution of the COVID-19 vaccines, hospitality industry reports indicate that domestic drive-to leisure markets have rebounded sooner and stronger than other segments. Rising travel costs have pushed travelers to visit nearby leisure destinations, such as Niagara Falls.
  • For the TTM period ending July 2022, demand and revenue for this Niagara Falls competitive submarket of hotels rose 23.7% and 42.3%, respectively, compared to the same period ending July 2021.

Premier Location Next to Niagara Falls State Park

  • The property benefits from its irreplaceable location at the entrance of Niagara Falls State Park, which attracts nearly nine million visitors annually who generate roughly $2 billion in tourism spending.
  • The property is the closest of all hotels to Niagara Falls State Park.
  • Old Falls Street extends along the north side of the retail building, and thousands of tourists walk along this main thoroughfare daily during peak season.

Unencumbered by Management and Franchise Agreements

  • The property is being offered unencumbered by a management agreement.
  • The existing franchise license agreement expires this year, allowing a buyer to acquire the property unencumbered by a hotel franchise agreement, thus offering the flexibility to reposition the asset, if desired.
  • The Choice Hotels International change-of-ownership PIP has been received and uploaded to the virtual deal room (VDR).

MAP

CONTACT US

Investment Sales Contacts

Eric Guerrero

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

Bradley Hoban

Vice President, Brokerage & Advisory
HVS
Los Angeles
+1 (773) 809-0101
bhoban@hvs.com

James Rebullida

Vice President, Brokerage & Advisory
HVS
Houston
+1 (713) 955-5580
jrebullida@hvs.com

Fadi Rawashdeh

Senior Associate, Brokerage & Advisory
HVS
Houston
+1 (713) 955-0013
frawashdeh@hvs.com

Kyle Peterek

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

Stephen Rushmore, Jr.

President and CEO
HVS
New York
+1 (617) 868-6840
srushmorejr@hvs.com
NY License: 10491210724