Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
Lori Medlin
President/CEO
Halifax County CVB
(800) 522-4282
Contact Information
Halifax County Convention & Visitors Bureau and Halifax County Economic Development Commission invite you to learn more
about this opportunity to develop a hotel and restaurant in Halifax County, North Carolina.
CONFIDENTIALITY AGREEMENTThis is a Confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to
express further interest in the project. This Memorandum contains select information pertaining to a proposed project and does
not purport to be a representation of the state of affairs of the project or the owner of the Property (the “Owner”), to be all-
inclusive, or to contain all of the information which prospective developers may require to evaluate their level of interest in the
project. Any and all estimates, including financial projections, as well as the information provided herein or elsewhere, are
provided for general reference purposes only. Certain estimates, projections and information may be based on assumptions
relating to the general economy, market conditions, competition and other factors which are beyond the control of the Owner
and REVPAR International (the consulting firm that conducted the Market Feasibility Study in 2018). Therefore, all projections,
assumptions and other information provided herein are subject to material variation. All references to acreages, square
footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be
made available to interested and qualified prospective developers.
Neither the Land Owner, REVPAR International, or Halifax County CVB, nor any of their respective directors, officers, affiliates
or representatives, make any representation or warranty, expressed or implied, as to the accuracy or completeness of this
Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this
Memorandum or use of its contents. You are to rely solely on your investigation and inspection of the Property in evaluating a
possible interest to develop the project.
The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers, and/or to
terminate discussions with any entity or person at any time with or without notice. The Owner shall have no legal commitment
or obligation to any entity or person reviewing this Memorandum or making an offer to purchase the Property unless and until
written agreement(s) have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s
obligations therein have been satisfied or waived.
By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will
hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other
person or entity without the prior written authorization of the Owner, Halifax County CVB, and REVPAR International. You also
agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interests of the Owner,
Halifax County CVB, or REVPAR International.
Cathy A. Scott
Executive Director
Halifax County Economic
Development Commission
(252) 519-2630
Contact Information
1
The Opportunity 1
Location & Site Overview 2
Leisure Demand 5
Overview of Proposed Hotel 9
Overview of Proposed Restaurant 15
I-95 HOTEL & RESTAURANT DEVELOPMENT OPPORTUNITY
HALIFAX COUNTY, NC
Halifax County CVB is pleased to present this
opportunity to develop a hotel and restaurant on a prime
+13.5-acre site located adjacent to I-95 in Halifax
County, North Carolina. The site is situated in the
northeast quadrant of the intersection of I-95 and US
158 in Halifax County (Exit 173), which is the first major
southbound exit off I-95 after crossing the border into
North Carolina from Virginia. It is a well-known stopover
location for travelers commuting north or south via I-95.
The subject site offers proximity to area demand
generators, while its location adjacent to I-95 is viewed
positively for a proposed hotel and restaurant as I-95
represents the area’s main source of room night and
food and beverage demand with over 42,000 average
daily traffic (ADT) counts.
1HOTEL DEVELOPMENT OPPORTUNITY, HALIFAX COUNTY, NC
Direct I-95 access & visibility
42,000 vehicles pass this exit daily
Growing demand base – both in terms of I-95 passenger counts,
businesses and visitors
Market support for +90-room upper-midscale, limited-service hotel, i.e.,
Fairfield Inn & Suites
Market support for +195-seat casual restaurant, i.e., Red Robin
1
Subject Site
I-95 HOTEL & RESTAURANT DEVELOPMENT OPPORTUNITY
HALIFAX COUNTY, NC
The 13.47 acre site contains the former Interstate Inn & Campground, along with the housing structures, which are in the process of being demolished with completion by
December 31, 2018. The balance of the site is vacant. Currently, there are no working drawings or plans for the site; however, according to the Halifax County CVB,
both a hotel and a free-standing restaurant would be an ideal (redeveloped) use for the site, given its adjacency and ease of access to I-95. Also, both facilities, if properly
situated on the site, will offer direct and excellent visibility from I-95. The small gas station at the front of the property can also be included in any potential deal.
.
24
ADJACENTTO I-95
1st MAJOR SOUTHBOUND EXIT
IN NC
TRAFFIC COUNTS OF +42,000 CARS
+100,000 PEOPLE DAILY
ROCKFISH CAPITAL OF THE WORLD
GROWING LOCAL POPULATION AND
EMPLOYMENT BASE
I-95 HOTEL & RESTAURANT DEVELOPMENT OPPORTUNITY
HALIFAX COUNTY, NC
DEMOLITION OF
COMMERCIAL AND
HOUSING STRUCTURES
IN PROCESS COMPLETE
BY 12/31/18
Halifax County is known for its rich history and outdoor activities, such as fishing and
water activities, as well as several historic sites. Leisure demand (both transient and
group) for the hotel is the largest source of business in the market.
The largest generator of leisure demand in the market area is I-95. The interstate’s
connectivity from Maine to Florida provides interstate travelers a convenient stopping
point with an array of amenities. Interstate demand typically peaks in the summer
months from mid-June through mid-September when children are out of school and
families are on vacation. During this period, demand is at its heaviest for both area
hotels and restaurants, particularly on the weekends. Other generators of leisure
demand include:
▪ Rockfish or striped bass fishing on the Roanoke River. In fact, Weldon is known
as the “Rockfish Capital of the World” where roughly 3 million fish return from the
ocean each year to spawn. The main launching point for boats to enter the
Roanoke River is located 2.5 miles east of the subject site near historic downtown
Weldon. Per Halifax County CVB, the boat ramp sees over 70,000 launches
during the fishing season.
▪ Numerous outdoor attractions include nearby Lake Gaston, Roanoke Rapids
Lake, Sylvan Heights Bird Park, and the 3,893-acre Medoc Mountain State Park.
▪ Tourist/historic attractions include Historic Halifax, the Roanoke Canal Museum &
Trail, and Roanoke Rapids Theater.
▪ Youth sports tournaments, which are held at local athletic fields that are located
throughout the market area.
▪ A large number of family reunions due to the convenient location of Halifax County
along I-95.
LEISURE DEMAND
5I-95 HOTEL & RESTAURANT DEVELOPMENT OPPORTUNITY
HALIFAX COUNTY, NC
3
The subject site offers great proximity to area
commercial demand generators.
The Roanoke Rapids-Weldon Area is the
commercial hub for northeastern North Carolina
and was recently named one of the Top 100 (#18)
Micropolitan Areas in the U.S. Local business hotel
demand generators include KapStone Paper &
Packaging, Halifax Regional Medical Center, Rural
Health Group, Klausner Lumber Two, Reser’s Fine
Foods, the NC Center for Automotive Research
(NCCAR) and other commercial and manufacturing
facilities located in the immediate area. Having
construction of renewable energy facilities and
electrical. natural gas, and rail infrastructure have
resulted in steadily increasing demand for hotel
rooms. Major highway improvements are planned in
the area over the next 3 to 5 years that can
significantly induce demand for accommodations.
Additionally, the Roanoke Rapids-Weldon Area
offers the closest option for hotel rooms for
corporate and commercial business travels in
nearby Warren, Northampton, and Hertford
counties.
COMMERCIAL DEMAND
6I-95 HOTEL & RESTAURANT DEVELOPMENT OPPORTUNITY
HALIFAX COUNTY, NC
3
PROXIMATE RESTAURANTSThe subject site is proximate to many nationally-branded and independent food and beverage facilities. A critical mass of such operations is an important factor for
both successful hotel and restaurant development. A stand-alone restaurant can be co-located adjacent to the subject hotel and offer hotel guests and the 100,000+
passengers passing the site daily on I-95 a viable food and beverage option, which enhances the appeal of the hotel site to potential guests.
8I-95 HOTEL & RESTAURANT DEVELOPMENT OPPORTUNITY
HALIFAX COUNTY, NC
14
765
8
23 Subject Site
OVERVIEW OF THEHOTEL COMPETITIVE SET
Several other lodging facilities are present in the area, but ultimately were not
included in the below competitive set based on location, facilities, room rate
structure, market orientation, and/or lack of national chain affiliation. This
includes economy-level and independent facilities, such as the Red Roof Inn
Roanoke Rapids, Super 8 by Wyndham Garysburg/Roanoke Rapids, the
Fairfax Motel, and Brookwood Motel.
Competitive Supply
Competitive Hotels# of
Rooms
Miles from
Subject
1. Hampton Inn Roanoke Rapids 126 0.7
2. Holiday Inn Express & Suites Roanoke Rapids SE 72 0.8
3. Sleep Inn & Suites Roanoke Rapids 105 0.6
4. Quality Inn Roanoke Rapids 60 0.5
5. Baymont by Wyndham Roanoke Rapids 40 0.9
6. Econo Lodge Weldon 45 0.2
7. Days Inn by Wyndham Weldon-Roanoke Rapids 99 0.2
8. Best Western Roanoke Rapids 80 2.9
9. Hilton Garden Inn Roanoke Rapids 147 3.3
Total 774 --
9
10I-95 HOTEL & RESTAURANT DEVELOPMENT OPPORTUNITY
HALIFAX COUNTY, NC
The potential competitive set for an upper-midscale, limited-service hotel at
the subject site is provided in the following table. These properties were
selected based on their chain scale, quality of facilities, and overall condition.
Hampton Inn Roanoke RapidsHoliday Inn Express & Suites
Roanoke Rapids SESleep Inn & Suites Roanoke
Rapids
Quality Inn Roanoke RapidsBaymont by Wyndham
Roanoke RapidsEcono Lodge Weldon
Days Inns by Wyndham Weldon-Roanoke Rapids
Best Western Roanoke RapidsHilton Garden Inn Roanoke
Rapids11
4
$83.28
$80.89 $81.96
$81.00
$56.48 $55.57 $55.21
$59.21
67.8%68.7%
67.4%
73.1%
$40
$50
$60
$70
$80
$90
50%
55%
60%
65%
70%
75%
2014 2015 2016 2017
ADR RevPAR Occupancy
HOTEL COMPETITIVE SET PERFORMANCEOccupancy
Since 2014, room night demand for the defined competitive set
increased 7.3 percent compounded annually, or by roughly 39,400
room nights, while supply increased by 4.7 percent, or by 36,100
room nights, due to the opening of the Econo Lodge Weldon in May
2015. Occupancy growth was driven by increased leisure transient
travel and an improving national economy, as well as the additional
construction-based business accommodated in the area, some of
which came in the form of extended-stay business. Occupancy
growth was also driven by SMERF or leisure group business, such
as family reunions and youth sporting events, all of which is further
tied to an improving national economy.
Average Daily Rate (ADR)
Meanwhile, ADR for the competitive set decreased by 0.9 percent
compounded annually between 2014 and 2017, or $2.28. The
decrease is due to select hotels in the competitive set changing
their strategy and lowering rates minimally to gain more occupancy.
Furthermore, the Econo Lodge, an economy scale product, offers
lower room rates than many of the area hotels and ultimately put
downward pressure on the market’s ADR.
Revenue Per Available Room (RevPAR)
By combining the occupancy and ADR performance, RevPAR for
the competitive set increased by 1.6 percent, from $56.48 to
$59.21, from 2014 to 2017, driven by the robust demand increase.
12I-95 HOTEL & RESTAURANT DEVELOPMENT OPPORTUNITY
HALIFAX COUNTY, NC
4
ESTIMATED HOTEL OPERATING PERFORMANCE
Proposed +90-Unit Fairfield Inn and Suites, Halifax CountyProjected Operating Results 2021 - 2026
Year OccupancyAverage Daily
Rate (1) RevPARMarket
OccupancyTotal Revenue
EBITDA After Reserve
$ Amount %
Stabilized Year (2) 75% $103.00 $77.25 -- $2,624,000 $767,000 29.2%
2021 62% $113.00 $70.06 70% $2,395,000 $563,000 23.5%
2022 67% $116.00 $77.72 71% $2,650,000 $699,000 26.4%
2023 75% $120.00 $90.00 71% $3,056,000 $897,000 29.4%
2024 75% $124.00 $93.00 72% $3,158,000 $935,000 29.6%
2025 75% $127.00 $95.25 72% $3,235,000 $949,000 29.3%
2026 75% $131.00 $98.25 72% $3,338,000 $982,000 29.4%
CAG (3) 3.6% (4) 3.0% 7.0% -- 6.9% 11.8% --
Notes: (1) Average daily rate has been rounded to the nearest dollar.(2) Presented in 2018 dollars.(3) Compound Annual Growth.(4) Compound Annual Growth for occupancy based on occupied room nights.
I-95 HOTEL & RESTAURANT DEVELOPMENT OPPORTUNITY
HALIFAX COUNTY, NC13
SUGGESTED HOTEL CONCEPT
Based on the market research and analysis
conducted, the following summarizes the
suggested facility plan for the hotel:
• Upper-midscale, limited-service product
• Nationally recognized brand affiliation
• 90 units
− 75% standard rooms
− 25% suites
• Indoor swimming pool and whirlpool
• Fitness center
• Sundry shop
• Business center
• ~1,000 square feet of meeting space
(divisible by two)
• Complimentary wireless high-speed
internet access throughout the hotel
• Guest laundry facility
• Adequate free guest parking
• Bus/boat/trailer parking
814I-95 HOTEL & RESTAURANT DEVELOPMENT OPPORTUNITY
HALIFAX COUNTY, NC
14
7
65 23
Subject Site
OVERVIEW OF RESTAURANT COMPETITIVE SETThe potential competitive set for a branded, casual (sit-down) restaurant at the subject site is provided in the following table. These seven restaurants
represent either competitive or comparable operations to the subject based on location, type/concept of restaurant, quality of facilities, and/or menu
pricing.
Competitive Supply
Competitive Restaurants ConceptMiles from
Subject
1. Applebee’s Grill & Bar Casual Dining American 0.6
2. Cracker Barrel Old County Store Casual Dining American 0.3
3. Ruby Tuesday Casual Dining American 0.4
4. Logan’s Roadhouse Casual Dining Steakhouse 0.4
5. Texas Steakhouse & Saloon Casual Dining Steakhouse 0.5
6. Ralph’s Barbecue Casual Dining Steakhouse 0.2
7. Mayflower Seafood Restaurant Casual Dining Seafood 0.7
16I-95 HOTEL & RESTAURANT DEVELOPMENT OPPORTUNITY
HALIFAX COUNTY, NC
The balance of the restaurants in the area, such as all of the fast-food
restaurants, Waffle House, Pizza Hut, Subway, San Jose Mexican Restaurant,
Frazier’s, Carolina BBQ & Chicken, New China Restaurant, Pino’s Pizza, were
considered, but ultimately not included in our defined competitive set due to their
location, size, layout, physical condition, and/or menu offering (concept).
Applebee’s Grill & BarCracker Barrel Old County
StoreRuby Tuesday
Logan’s Roadhouse Texas Steakhouse & Saloon Ralph’s Barbecue
Mayflower Seafood
17
SUGGESTED RESTAURANT
CONCEPTBased on the market research and analysis
conducted, the following summarizes the
suggested facility plan for the restaurant:
• Casual themed restaurant
• Nationally recognized brand affiliation
• +165 dining seats and 30 bar seats
• Free wi-fi
• Small private dining room off main
dining area
• Separate “To-Go” pick-up area
• Adequate free guest parking
818I-95 HOTEL & RESTAURANT DEVELOPMENT OPPORTUNITY
HALIFAX COUNTY, NC
4
ESTIMATED RESTAURANT OPERATING PERFORMANCEProposed +195-Seat Red Robin Restaurant, Halifax County
Estimated Restaurant Sales Stabilized Year & Projected Operating Results 2021 – 2026
Meal PeriodCover Counts
Check AverageSales (1)
Amount % $ Amount %
Lunch 40,320 25% $12.00 $483,840 19%
Lunch To-Go 4,284 3% $11.00 $47,124 2%
Dinner 63,000 39% $20.00 $1,260,000 49%
Dinner To-Go 6,300 4% $18.00 $113,400 4%
Bar 46,116 29% $14.00 $645,624 2%
Total 160,020 100% $15.94 $2,549,988 100%
Year Total RevenueEBITDA After Reserve
$ Amount %
Stabilized Year (1) $2,550,000 $274,500 10.8%
2021 $2,508,000 $151,700 6.0%
2022 $2,798,000 $229,100 8.2%
2023 $2,956,000 $323,800 11.0%
2024 $3,045,000 $327,200 10.7%
2025 $3,137,000 $338,500 10.8%
CAG (3) 4.2% 4.3% --
Notes: (1) Presented in 2018 dollars.(2) EBITDA does not include rent/land lease, debt, or depreciation/ amortization.(3) Compound Annual Growth.
19I-95 HOTEL & RESTAURANT DEVELOPMENT OPPORTUNITY
HALIFAX COUNTY, NC
Ho
tel D
evel
op
men
t O
pp
ort
un
ity
Old
Nap
les
Ho
tel,
Nap
les,
FL
For More Information Please Contact
Lori R. Medlin
President/CEO
Halifax County Convention & Visitors Bureau
(800) 522-4282
Cathy A. Scott
Executive Director
Halifax County Economic Development Commission
(252) 519-2630