Super 8 and Baymont

by Wyndham

Morganton, NC

THE OPPORTUNITY

Lodging Partners is pleased to present the opportunity to acquire the 111-room dual-brand Super 8 and Baymont, a limited-service Hotel located off I-40 in Morganton, NC. Located in the heart of Morganton, this Hotel offers a charming and convenient lodging experience for both business and leisure travelers.

The Hotel is situated near local attractions and prominent companies. Morganton is a thriving city in western North Carolina and is known for its natural beauty, historic sites, and vibrant community. The city offers a blend of business, cultural, and recreational opportunities and attracts a diverse range of visitors throughout the year. The Hotel benefits from a diverse range of demand generators, including construction workers, business travelers, tourists, and visitors to nearby educational institutions.

A new investor has the opportunity to purchase from an absentee owner a completely renovated Hotel on the I-40 corridor in western NC. The Hotel is in great condition following a major $1.8m renovation ($16,216/room) and reconstruction. Exterior renovations included the addition of a new roof, stucco, exterior paint, covered stairwells, exterior lighting, new utilities, and landscaping. Interior renovations included a new lobby, breakfast lounge, and fitness center. All the guestroom bathrooms were upgraded with new tubs, tub surrounds, flooring, vanities, and some toilets. The guestrooms were all fully renovated with new furniture & fixtures, mattresses, bedding, HVAC units, electronic locks, carpet & flooring, flat-screen HDTV, mini-refrigerators, and microwaves.

The Super 8 and Baymont by Wyndham is being offered free of management and debt. The Property is offered in an “as is, where is” condition on fee-simple land.

INVESTMENT HIGHLIGHTS

The renovations that were recently completed will provide a significant upside opportunity for a new owner to drive rate and achieve further penetration. A new owner will also be able to capitalize off the conversion of the 50 rooms that are currently being converted from the Baymont brand into the Super 8 brand to simplify operations and improve revenue performance.

Property Highlights

111 guestrooms, very easy to operate & ideal size for an owner-operator
Completely renovated Property that includes a new roof, new utilities, bathrooms, and FF&E with over $1,800,000 ($16,216/room) of improvements
Two-story, exterior corridor building
Very Minimal or no PIP expected for the new owner
Spacious 4-bedroom Manager Apartment

The Hotel is well-located off I-40 in the beautiful Blue Ridge Mountains. Hotel demand in this market includes I-40 business and leisure travelers such as construction workers, hikers, hospital visitors, and medical staff.
The Morganton Comp Set recovered strongly from Covid-19 with a 17.9% increase in RevPAR from 2021 to 2022.
The dual branded Hotel consists of a total of 111 guestrooms and continues to ramp up after opening as a 61-room Super 8 and 50-room Baymont in May of 2021.
The Hotel has an Absentee Owner and is very easy to operate and is the ideal size for an Owner-Operator; it provides a great opportunity for upside potential with more hands-on management in top-line growth, expense management, and operational efficiencies.

UPSIDE POTENTIAL

This property offers significant upside potential with more hands-on management and direct sales efforts. The ideal buyer will be an owner-operator who uses the opportunity to drive top-line revenue to increase the Hotel’s RevPAR index, revamping revenue management strategy and engaging in marketing for the property to achieve much stronger occupancy and rates.

The Hotel will quickly benefit from the conversion of the 50 Baymont rooms to Super 8. The Super 8 runs much higher occupancy and ADR and, as a result, its 2022 RevPAR was 56% higher than Baymont.

There is a significant amount of extended stay demand in the market, with no extended stay properties to serve this demand. The Super 8 Hotel has a wing with 24-rooms that can be easily converted to kitchenettes to accommodate extended stay guests.

Franchise

Financials and STR reports reflect a dual brand Super 8 and Baymont Hotel. The current owner is in the process of converting the entire Hotel to the Super 8 brand, which will be completed prior to sale.

The new owner is expected to be granted a standard license agreement with very minimal or no PIP expected for the new owner.

LOCATION

PROPERTY OVERVIEW

Hotel Configuration

The Property is complete with guest amenities that include complimentary hot breakfast, business center, fitness center, and guest laundry. The Hotel has plenty of free on-site parking, including RV and trailer parking.

Renovations

The Hotel is in great condition following a major $1.8m renovation ($16,216/room) and reconstruction. To complete the full renovation, the hotel was shut down in June of 2019 and fully re-opened in May of 2021. Exterior renovations included the addition of a new roof, stucco, exterior paint, covered stairwells, exterior lighting, new utilities, and landscaping. The interior of the entire building was completely gutted, 5 guest rooms were removed and converted to a new lobby and breakfast lounge, and 1 room was converted to a new fitness center. All the guestroom bathrooms were upgraded with new tubs, tub surrounds, flooring, vanities, and some toilets. The guestrooms were all fully renovated with new furniture and fixtures, mattresses, bedding, HVAC units, electronic locks, carpet & flooring, flat-screen HDTV, mini-refrigerators and microwaves.

Guestroom Configuration

The Hotel is an exterior-corridor building with 111 spacious guestrooms that feature free high-speed Internet access, coffee makers, hair dryers, irons, ironing boards, microwaves, minifridges, and HDTV televisions. In addition, there is a 4-bedroom manager apartment. The hotel has the following room breakdown: 67 Double-Double, 42 Kings, and 2 suites each with a King and Full bed.

Room Night Demand

Morganton boasts a diverse and thriving economy, with a mix of industries and businesses driving its growth. The city is home to various prominent companies, educational institutions, and healthcare facilities which contribute to the local economy and generate consistent demand for lodging.

MARKET OVERVIEW

The city boasts a variety of local attractions, including historic landmarks, art galleries, and museums. Morganton’s rich history and cultural heritage make it an appealing destination for tourists. The region surrounding Morganton is known for its natural beauty and outdoor recreational opportunities. Visitors can explore the nearby mountains, enjoy hiking and biking trails, and participate in water-based activities at nearby lakes.

In addition to its many attractions, Morganton is home to a strong and diverse economy, with a mix of industries such as healthcare, manufacturing, and education. The city’s economic stability ensures a consistent demand for hotel accommodation. Morganton is home to Western Piedmont Community College and about an hour drive to Appalachian State University. This proximity generates consistent demand from visiting faculty, parents, and students.