"Both motels represented an ideal investment opportunity," said Hoffman. "They have never been listed for sale in the open market, boast excellent locations in strong markets with barriers to entry and have generated healthy cash flows in their present condition."
According to Hoffman, Trigild has operated the motels for nearly seven years. Consisting of an 124-unit motel and freestanding restaurant in Encinitas (North San Diego County) and a 224-unit motel in Mission Valley (central San Diego), the properties are in dire need of a face lift -- both are 12 years old and have never been renovated.
To achieve market occupancies and average rates, Trigild will completely renovate and enhance both properties. The Encinitas site will be converted into a Days Inn, undergoing a $760,225 remodel complete with new guestroom and lobby furnishings, exterior upgrades and a new pool, spa and porte-cochere. This location also includes a 4,500-square-foot leased Denny's restaurant.
The Mission Valley motel will be remodeled into a Ramada Inn & Suites. Half of its rooms are very small, so they will be converted into suites -- bringing the total room count to 170 guest rooms and suites. A lobby building and porte-cochere will be added, as well as a pool, spa and courtyard for a total remodel cost of $1,694,115.
Archon / Goldman Sachs provided 92% financing and Designtex will do the renovations which are slated for completion by June 15, 1998. According to projections, in three years the properties should be valued at $17,000,000 (using a ten cap rate).
Hoffman said all upcoming purchases would include acquiring and repositioning under - performing existing hotels and development of new hotels in select markets throughout the country.
One of the largest hotel management companies in the West, Trigild has been managing hotels for more than 20 years. The firm has operated more than 120 troubled hotels for lender clients, and is utilizing this experience in the acquisition of underperforming hotels that have a strong upside. Following a purchase, Trigild typically renovates the property and adds or changes the franchise.
Trigild is located at 12555 High Bluff Rd., Suite 330 in San Diego.
For more information, please call (619) 481-6767.
|Trigild was founded in 1976 by its current president,
William J. Hoffman. Our corporate offices are located in San Diego with
regional personnel based in a variety of other markets.
We provide a wide range of services for hotels, motels, resorts, restaurants, apartments, senior care facilities and commercial properties. Trigild’s foundation and core business is full-charge income property management. We also handle receiverships, bankruptcy custodianships, consulting, property evaluations, and litigation support.
Our fundamental objective is to maximize the value of the property while improving operating profits and cash flow. These goals are achieved by using proper planning, sound organization, proven operational methods, tight fiscal control, and aggressive marketing. Trigild has an array of proven programs and systems that generate bottom-line results.
Trigild maintains a centralized accounting department that utilizes state-of-the-art hardware and software. Its comprehensive system of controls and reporting includes rapid transmission of data, instant verification of funds handling, and immediate communication with on-site property staff.
Every Trigild property is assigned to a Project Manager who takes a "task force" approach to its management. An appropriate team of experts is selected to match the challenges of the property. One reason for Trigild’s record of success is its standards for assuring that adequate personnel resources and expertise are available for each property.
At the same time, a direct line of communication with the client is maintained in order to remain aware of the changing needs of the client and to keep clients informed of activities and developments related to their investments. Prompt financial statements, statistical information, and narrative reports are basic to this relationship