Ideal Opportunity for an Experienced Owner/Operator to Improve Performance

• Historically, the hotel's rooms revenue surpassed $2,800,000; however, its performance was affected by the brand-mandated renovation project that was carried out between November 2023 and May 2024.

• Per the monthly STR data, the hotel’s RevPAR penetration index was 84.6% in September 2024, while the running-three-month data through September illustrate a strong post-renovation ramp-up, with a RevPAR penetration index exceeding 102.0%. 

• The opportunity exists for an investor to acquire the asset on an upswing, recapture demand, and drive RevPAR penetration to a more competitive level.

Recently Renovated Asset

• Ownership recently completed a significant renovation project, inclusive of updates to all guestrooms and public areas; the total project cost has been estimated at approximately $1,500,000 (rounded), or roughly $15,000 per key.

• New ownership will have the ability to focus on improving hotel performance and operations without the burden of executing a major change-of-ownership property improvement plan (PIP).

Excellent Location Among Numerous Demand Generators

• The property benefits from excellent visibility and accessibility given its location along the Interstate 26 (I-26) frontage road, with easy access to Downtown Columbia to the southeast. The hotel is favorably located near many dining, retail, and entertainment options, considered a positive attribute for both business and transient guests.

• Scout Motors (Volkswagen) announced a $4-billion investment to develop an electronic-vehicle (EV) manufacturing plant within the nearby Blythewood Industrial Site. Construction is slated to begin in Q1 2025, and an estimated 4,000 workers are expected to be employed upon its completion in 2027.

• Columbia is home to Fort Jackson, the U.S. Army’s largest training installation. Nearly 100,000 people visit each year for graduation ceremonies, family gatherings, and other events.

• Columbia is the state's capital, and over six months of in-session meetings and deliberations are held at the South Carolina State House and surrounding government buildings, boosting lodging demand in the market.

• Cirba Solutions, a materials and management company for end-of-life batteries and gigafactory scrap, announced in March 2023 that it plans to develop a world-class, lithium-ion, EV battery recycling factory near Columbia. The company plans to invest over $1 billion in the next five years, and operations at the new campus are expected to begin before year-end 2024.

• Columbia benefits from the presence of 14 Fortune 500 companies; major employers include Dominion Energy, UPS, Michelin, Honeywell, and Pirelli Cables, among others.

University of South Carolina

• The University of South Carolina (USC) has approximately 30,000 undergraduate students enrolled who reside in and around Columbia. Per a university-led study published in 2021, USC's total economic impact equated to approximately $6.2 billion, reflecting a 12.7% increase from the previous study, with an estimated $41 million pumped directly into the local economy via visitor spending.

• Given its dominance in athletics and its participation in the Southeastern Conference (SEC), USC is one of six schools to rank in the top 40 in the country for average attendance per game across five different sports: football, men’s and women’s basketball, baseball, and softball.

• The University is planning a $1.1-billion project around its Williams-Brice Stadium, which would involve developing more than 800 acres to create a vibrant, year-round shopping, dining, and living experience near the 80,000-seat football stadium.

Growing Tourism Market

• The Columbia Metropolitan Area welcomed 15.8 million visitors in 2022, reflecting a record high and a 4.7% year-over-year increase, per the Columbia Regional Business Report.

• Tourism contributed a total economic impact of $2.6 billion, demonstrating a noteworthy 12.0% upswing from 2021.

• Overnight guests in the market increased from 5.5 million to 5.7 million in 2022, with lodging accommodations accounting for $286 million, or 17.0%, of visitor spending.

Priced Significantly Below Replacement Cost

• The asset can be acquired at a price significantly below replacement cost.

• To construct a similar limited-service, extended-stay hotel property with comparable amenities, the estimated all-in investment would be a minimum of $150,000 per key.

• Given the recent renovation, a new buyer can expect a minimal change-of-ownership property improvement plan (PIP).