News for the Hospitality Executive
Jones Lang LaSalle Hotels, as sole and exclusive agent for St. Simons Island Resorts, (the “Seller”) is pleased to present the sale of the fee simple interest in the Holiday Inn Express and the Best Western (the “Hotels” or the “Properties”) located on St. Simons Island, Georgia.
The Hotels are offered unencumbered by management and provide an exceptional opportunity for investors to acquire strategically located assets in the heart of the St. Simon’s resort corridor. The two-story, 60 guestroom, interior corridor Holiday Inn Express was built in 1998 and is in excellent condition after undergoing major renovations in 2009, which included soft goods, case goods, and flat screen TV’s. The Best Western is a two-story, exterior corridor Property built in 1987 and comprises 61 guestrooms, which were renovated with new case goods, carpet and artwork in 2008. The Hotels are located on the western end of St. Simons Island, with good access and visibility along Demere Road, one of the major thoroughfares on the island. The Properties are advantageously positioned in the St. Simons hotel market as restrictive development covenants create high barriers to entry for any new supply trying to enter the market.
The Holiday Inn Express and Best Western are located approximately one mile from the Sea Island Golf Course, St. Simons Island Historic District and Lighthouse, two miles from the St. Simons Island Beach and six miles from Fort Frederica National Monument. Also, the Properties are located one mile from the Malcolm McKinnon Regional Airport and 11 miles (20 minute drive) from the Brunswick Golden Isles Jetport.
Key Investment Highlights
The largest of Georgia’s Golden Isles, St. Simons is a renowned tourist hotspot as the tourist industry serves as the most important driver of the local economy. The Brunswick Isles attract over 2.3 million visitors each year with direct expenditures for fiscal year 2010 of over $1 billion.
Along with the tourist industry, the Port of Brunswick, the primary export facility for Ford, General Motors and Mercedes-Benz, plays a major role in the local economy and is located just 12.6 miles west of the Holiday Inn Express and the Best Western. For fiscal year 2010, the port observed a 26.2% increase in total annual tonnage and is ranked the sixth largest vehicle processing port in the country. Georgia’s deepwater ports provide more than $61 billion in annual revenue and are considered instrumental towards the future growth of the state’s economy. The $5.25 billion expansion of the Panama Canal is projected to be complete in 2014 and is expected to have a significant impact on the growth of the southeastern U.S. ports. The Federal Law Enforcement Training Center (FLETC) is located 10.5 miles northwest of the Hotels, and provides services for more than 80 Federal agencies. The FLETC is set on a 1,500 acre campus that includes meeting spaces, classrooms, housing facilities, and indoor firearm ranges.
As the market continues to improve, the next owner will be able to capture increased revenues as occupancy and ADR rebound to pre-recessionary levels. The Holiday Inn Express and the Best Western observed RevPAR growth for YTD July 2011 of 7.5% and 3.9%, respectively, compared to the same period last year.
Jones Lang LaSalle Hotels, the first and leading global hotel investment services firm, is uniquely positioned to provide the depth and breadth of advice required by hotel investor and operator clients, through a robust and integrated local network. In 2010, Jones Lang LaSalle Hotels provided sale, purchase and financing advice on $4.1 billion worth of transactions globally. In addition, advisory and valuation services were provided on over 1,000 assignments. The global team comprises over 250 hotel specialists, operating from 40 offices in 20 countries. The firm’s advice is supported by a dedicated global research team, which produced 70 publications in 2010 in addition to client research. Jones Lang LaSalle Hotels’ services span the hospitality spectrum; from luxury single assets and large portfolios to select service and budget hotels, resorts and pubs. Services include investment sales, mergers and acquisitions, capital raising, valuation and appraisal, asset management, strategic planning, operator selection, management contract negotiation, consulting, industry research and project development services. Jones Lang LaSalle Hotels’ clients have access to the resources of its parent company, Jones Lang LaSalle (NYSE: JLL).
Senior Vice President
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