RED LION HOTEL | POCATELLO1555 Pocatel lo Creek Road | Pocatel lo, ID 83201
Offering Memorandum
NON-ENDORSEMENT & DISCLAIMER NOTICE
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the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of
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or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and
improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the
physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions
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© 2017 Marcus & Millichap. All rights reserved.
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RED LION HOTEL | POCATELLO1555 POCATELLO CREEK ROAD | POCATELLO, ID 83201
EXCLUSIVELY LISTED BY
O F F I C ES N AT I O N W I D E A N D TH R O U G H O UT C A N A D A
WWW.MARCUSMILLICHAP.COM
EDDY NEVAREZSenior Associate
National Hospitality GroupCell: 818.339.6506
Office: [email protected]
License: CA 01960485
07 INVESTMENT OVERVIEWSECTION 1
19 FINANCIAL ANALYSISSECTION 2
3729
MARKET OVERVIEWSECTION 4
MARKET COMPETITORSSECTION 3
TABLE OF CONTENTS
EXCLUSIVELY LISTED BY:
RED LION HOTEL | POCATELLO1 5 5 5 P O C A T E L L O C R E E K R O A D | P O C A T E L L O , I D 8 3 2 0 1
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as-sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate
Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Z0000000
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as-sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate
Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Z0000000
RED LION HOTEL | POCATELLO
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INVESTMENTOVERVIEW
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EXECUTIVE SUMMARY
OFFERING SUMMARY
VITAL DATA
2019 Pro Forma 1 Year
Price $6,400,000 Cap Rate 7.3% 12.3%
PIP $0 NOI $464,116 $784,524
Down Payment 30% / $1,920,000Net Cash FlowAfter Debt Service
6.6% / $125,909 23.3% / $446,316
Loan Amount $4,480,000
Loan Type SBA 7(a)
Interest Rate 5.75% / 10 years
Price / Room $42,667
Ownership Type Fee Simple
Number of Rooms 150
Number of Buildings 3
Number of Stories 2
Year Built 1979
Lot Size 4.13 Acres
MAJOR EMPLOYERS
EMPLOYER # OF EMPLOYEES
Finance and Administration 1,479
Monte Vsta Hills Hlth Care Ctr 687
State Police Idaho 245
United States Steel Corp 235
Veterans Benefits ADM 228
City of Pocatello 211
US Post Office 203
Home Depot The 200
Varsity Garcia 200
Walmart 200
Costco 196
Virginia Transformer 190
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2018 Estimate Pop 11,252 53,166 70,466
2010 Census Pop 10,978 52,016 68,770
2018 Estimate HH 4,141 20,215 26,269
2010 Census HH 4,047 19,865 25,776
Median HH Income $54,645 $45,495 $48,193
Per Capita Income $24,220 $23,533 $23,893
Average HH Income $65,169 $60,959 $62,845
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INVESTMENT OVERVIEW
Marcus & Millichap’s National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale the Red Lion Pocatello. The 150-room interior corridor hotel recently renovated in 2017-2018, features nine meeting spaces, a large banquet hall, a conference center, restaurant and indoor patio. Additional revenue is generated from the nearby college, Idaho State University, who frequently host events and meetings at the hotel’s conference center. The Red Lion Pocatello is being offered for sale for $6,400,000 or $42,667 per key. Priced with a capitalization rate of 7% or 3.4 times 2018’s year-end room revenue, this hotel offers significant upside potential for a new investor. Recent renovations over the past year have reduced the PIP requirements for a new owner. The Red Lion Hotel is offered fee simple and unencumbered by debt and management.
Located in the heart of Pocatello, this hotel is 2.7 mi (4.3 km) from Holt Arena and 3 mi (4.8 km) from Idaho State University (ISU). Portneuf Medical Center and L.E. and Thelma E. Stephens Performing Arts Center are also within 6 mi (10 km).
LOCATION
• Price Per Key is Below Replacement Cost
• Recently Renovated in 2017 - 2018
• Large Banquet Hall and Event Centers
• Restaurant / Bar & Lounge
INVESTMENT HIGHLIGHTS
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OFFERING SUMMARY
PROPERTY SUMMARY
THE OFFERING
Property Red Lion Hotel | Pocatello
Price $6,400,000
Property Address1555 Pocatello Creek Rd
Pocatello, ID 83201
Assessors Parcel Number RPCPP004803
SITE DESCRIPTION
Number of Rooms 150
ADA Rooms 7
Number of Stories 2
Year Built / Renovated 1979 / 2018
Ownership Type Fee Simple
Lot Size 4.13 acre(s)
PROPOSED FINANCING
FIRST TRUST DEED
Loan Amount $4,480,000
Loan Type SBA 7(a)
Interest Rate 5.75%
Amortization 25 Years
Loan Term 10 years
Loan to Value 70%
Second Trust Deed
Loan Type All Cash
CONSTRUCTION
Foundation Concrete
Framing Wood
Exterior Stucco
Parking Surface Asphalt
Roof Asphalt Roof Shingles
ROOM TYPES
NUMBER OF ROOMS ROOM TYPE
105Double Queens &
Single Queens
34 King
4 Suite / Kitchenette
7 ADA Compliant
MECHANICAL
HVAC AC
Elevators No
Fire Protection Sprinklers
CHANGE TO FRANCHISE
Term AC
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REGIONAL MAP
N
RED LION HOTEL | POCATELLO
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LOCAL MAP
N
RED LION HOTEL | POCATELLO
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AERIAL PHOTO
N
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PROPERTY PHOTOS
MARCUS & MILLICHAP closes more transactions than
any other brokerage firm
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This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as-sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate
Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Z0000000
RED LION HOTEL | POCATELLO
19
FINANCIAL ANALYSIS
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STR
JULY 2019
Occupany (%) ADR RevPAR
My Prop Comp Set Index (MPI) My Prop Comp Set Index (ARI) My Prop Comp Set Index (RGI)
Current Month 61.6 65.8 93.6 78.65 80.87 97.3 48.42 53.20 91.0
Year to Date 49.6 52.4 94.7 71.56 76.24 93.9 35.50 39.95 88.9
Running 3 Month 65.3 68.4 95.4 76.25 79.32 96.1 49.77 54.25 91.7
Running 12 Month 47.2 52.4 90.1 72.31 75.12 96.3 34.11 39.33 86.7
JULY 2019 VS 2018 PERCENT CHANGE (%)
Occupany (%) ADR RevPAR
My Prop Comp Set Index (MPI) My Prop Comp Set Index (ARI) My Prop Comp Set Index (RGI)
Current Month 0.3 -7.3 8.1 5.1 0.1 5.1 5.4 -7.2 13.6
Year to Date 11.3 -0.8 12.2 -10.2 -2.7 -7.7 0.0 -3.5 3.6
Running 3 Month 7.8 -1.2 9.1 -3.6 -2.8 -0.8 3.9 -4.0 8.2
Running 12 Month 7.9 -0.9 8.9 -7.0 -3.4 -3.8 0.3 -4.3 4.8
FINANCIAL ANALYSIS
Tab 2 - Monthly Perfomance at a Glance - My Property vs. Competitve SetRed Lion Hotel | Pocatello | 1555 Pocatello Creek Rd | Pocatello, ID 83201-2306 Phone: 208.233.2200
STR #4106 ChainID: IDPOCA MgtCO: None Owner: None
For the Month of: July 2019 Date Created: August 19, 2019 Monthly Competitve Set Data Excludes Subject Property
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Tab 3 - STAR Summary - My Property vs. Comp Set and Industry SegmentsRed Lion Hotel | Pocatello | 1555 Pocatello Creek Rd | Pocatello, ID 83201-2306 Phone: 208.233.2200
STR #4106 ChainID: IDPOCA MgtCO: None Owner: None
For the Month of: July 2019 Date Created: August 19, 2019 Monthly Competitve Set Data Excludes Subject Property
FINANCIAL ANALYSIS
OCCUPANCY % SUPPLY
CurrentMonth
% ChgYear to
Date% Chg
Running 3 Month
% ChgRunning
12 Month% Chg
Month % Chg
YTD % Chg
Run 3 Mon %
Chg
Run 12 Mon %
Chg
Red Lion Hotel | Pocatello 61.6 0.3 49.6 11.3 65.3 7.8 47.2 7.9 0.0 0.0 0.0 0.0
Market: Idaho 80.2 0.7 63.9 -0.1 76.6 -0.6 63.5 0.7 1.0 1.9 1.5 2.4
Market Class: Upper Midscale
80.8 1.2 67.4 0.6 79.0 1.0 66.5 0.5 2.8 3.1 2.7 3.5
Submarket: Idaho South Area
80.7 0.3 62.8 0.4 77.9 -0.2 61.3 1.6 1.7 1.6 1.7 2.2
Submarket Scale: Midscale Chains
82.5 0.5 66.0 1.8 80.4 0.9 64.7 1.6 3.6 1.2 2.5 2.4
Competitive Set: Competitors 65.8 -7.3 52.4 -0.8 68.4 -1.2 52.4 -0.9 0.0 0.0 0.0 0.0
AVERAGE DAILY RATE DEMAND
CurrentMonth
% ChgYear to
Date% Chg
Running 3 Month
% ChgRunning
12 Month% Chg
Month % Chg
YTD % Chg
Run 3 Mon %
Chg
Run 12 Mon %
Chg
Red Lion Hotel | Pocatello 78.65 5.1 71.56 -10.2 76.25 -3.6 72.31 -7.0 0.3 11.3 7.8 7.9
Market: Idaho 126.12 4.3 107.07 2.7 117.45 3.9 106.29 1.6 1.7 1.7 0.9 3.2
Market Class: Upper Midscale
124.31 4.1 108.25 1.4 117.63 2.6 107.41 0.0 4.0 3.7 3.7 4.0
Submarket: Idaho South Area
116.13 2.3 98.69 1.7 107.40 1.4 97.40 -0.1 2.1 2.1 1.4 4.2
Submarket Scale: Midscale Chains
119.12 2.7 102.17 1.3 111.82 1.4 100.85 -0.3 4.1 3.0 3.5 4.1
Competitive Set: Competitors 80.87 0.1 76.24 -2.7 79.32 -2.8 75.12 -3.4 -7.3 -0.6 -1.2 -0.9
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Tab 3 - STAR Summary - My Property vs. Comp Set and Industry SegmentsRed Lion Hotel | Pocatello | 1555 Pocatello Creek Rd | Pocatello, ID 83201-2306 Phone: 208.233.2200
STR #4106 ChainID: IDPOCA MgtCO: None Owner: None
For the Month of: July 2019 Date Created: August 19, 2019 Monthly Competitve Set Data Excludes Subject Property
RevPAR REVENUE
CurrentMonth
% ChgYear to
Date% Chg
Running 3 Month
% ChgRunning
12 Month% Chg
Month % Chg
YTD % Chg
Run 3 Mon %
Chg
Run 12 Mon %
Chg
Red Lion Hotel | Pocatello 48.42 5.4 35.50 0.0 49.77 3.9 34.11 0.3 5.4 0.0 3.9 0.3
Market: Idaho 101.13 5.0 68.47 2.5 89.98 3.3 67.55 2.3 6.1 4.5 4.8 4.8
Market Class: Upper Midscale
100.47 5.4 72.92 1.9 92.96 3.6 71.44 0.5 8.3 5.1 6.4 4.0
Submarket: Idaho South Area
93.71 2.6 62.01 2.1 83.64 1.2 60.34 1.8 4.4 3.7 2.9 4.1
Submarket Scale: Midscale Chains
98.29 3.3 67.41 3.1 89.92 2.3 65.24 1.2 7.0 4.4 4.9 3.7
Competitive Set: Competitors 53.20 -7.2 39.95 -3.5 54.25 -4.0 39.33 -4.3 -7.2 -3.5 -4.0 -4.3
CENSUS/SAMPLE - PROPERTIES & ROOMS PIPELINE
CENSUS SAMPLE SAMPLE % MARKET: Idaho
Properties Rooms Properties Rooms Rooms UNDER CONSTRUCTION PLANNING
Market: Idaho 351 24,578 189 18,099 73.6 Properties Rooms Properties Rooms
Market Class: Upper Midscale Class
94 8,745 81 8,158 93.3 6 572 22 2,030
Submarket: Idaho South Area
137 9,229 73 6,628 71.8
Submarket Scale: Midscale Chains
49 4,494 46 4,321 96.2
Competitive Set: Competitors 5 593 5 593 100.0
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FINANCIAL ANALYSIS
HISTORICAL P&L
2016 2017 2018 2019 Proforma
Rooms 150 150 150 150
Available Rooms 54,750 54,750 54,750 54,750
Rooms Sold 29,948 23,816 20,312 25,842
Occupancy 54.7% 43.5% 37.1% 47.2%
ADR $70.45 $72.89 $79.93 $72.31
RevPAR $38.54 $31.71 $29.65 $34.13
Revenue / Room $18,769 $17,189 $15,641 $15,847
Income
Room Revenue $2,100,821 74.6% $1,988,198 77.1% $1,850,587 78.9% $1,870,000 78.7%
F&B Revenue $377,190 13.4% $260,670 10.1% $256,730 10.9% $262,000 11.0%
Other $330,180 11.7% $284,325 11.0% $178,999 7.6% $180,000 7.6%
Events & Catering $7,186 0.3% $45,087 1.7% $59,852 2.6% $65,000 2.7%
Total Revenue $2,185,377 100% $2,578,280 100% $2,346,168 100% $2,377,000 100%
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2016 2017 2018 2019 ProformaDepartmental Expenses
Rooms $848,158 30.1% $855,909 33.2% $668,193 28.5% $668,193 28.1%
Food & Beverage $240,561 8.5% $213,823 8.3% $236,908 10.1% $246,341 10.4%
Other Operated Depts & Rentals $101,680 3.6% $123,755 4.8% $83,049 3.5% $74,577 3.1%
Total Departmental Expenses $1,190,399 42.3% $1,193,487 46.3% $988,150 42.1% $989,111 41.6%
Gross Operating Income $1,624,978 57.7% $1,384,793 53.7% $1,358,018 57.9% $1,387,889 57.9%
Undistributed Operating ExpensesAdministration & General $224,837 8.0% $191,497 7.4% $176,942 7.5% $176,230 7.4%
Marketing $1,582 0.1% $1,633 0.1% $1,134 0.0% $1,134 0.0%
Franchise Fees $335,347 11.9% $293,762 11.4% $222,283 9.5% $222,283 9.4%
Utility Costs $193,267 6.9% $206,324 8.0% $198,485 8.5% $198,485 8.4%
Property Operations & Maintenance
$123,762 4.4% $123,180 4.8% $47,479 2.0% $36,356 1.5%
Total Undistributed Operating Expenses
$878,795 31.2% $816,396 31.7% $646,324 27.5% $634,488 26.7%
Gross Operating Profit $746,183 26.5% $568,397 22.0% $711,695 30.3% $753,401 31.7%
Fixed ExpensesProperty Taxes $87,832 3.1% $61,404 2.4% $62,103 2.6% $62,103 2.6%
Insurance $91,397 3.2% $78,384 3.0% $60,792 2.6% $60,792 2.6%
Total Fixed Charges $179,229 6.4% $139,788 5.4% $122,895 5.2% $122,895 5.2%
Total Expenses $2,248,423 79.9% $2,149,671 83.4% $1,757,358 74.9% $1,746,494 73.5%
Amount Available for Debt Service & Other Fixed Charges
$566,954 20.1% $428,609 16.6% $588,800 25.1% $630,506 26.5%
Capital Replacement Reserve $112,615 4.0% $103,131 4.0% $93,847 4.0% $95,080 4.0%
Management Fee $84,461 3.0% $77,348 3.0% $70,385 3.0% $71,310 3.0%
Net Operating Income (EBITDA) $369,878 13.1% $248,129 9.6% $424,568 18.1% $464,116 19.5%
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FINANCIAL ANALYSIS
5 YEAR PROFORMA
2019 Proforma Year 1 Year 2 Year 3 Year 4 Year 5
Rooms 150 150 150 150 150 150
Available Rooms 54,750 54,750 54,750 54,750 54,750 54,750
Rooms Sold 25,842 26,617 27,283 27,828 28,246 28,528
Occupancy 47.2% 48.6% 49.8% 50.8% 51.6% 52.1%
ADR $72.31 $73.76 $75.23 $75.98 $76.74 $77.51
RevPAR $34.13 $35.86 $37.49 $38.62 $39.59 $40.39
Revenue / Room $15,847 $17,524 $18,307 $18,989 $19,571 $19,958
Income
Room Revenue $1,870,000 78.7% $1,963,188 74.7% $2,052,513 74.7% $2,114,499 74.2% $2,167,679 73.8% $2,211,249 73.9%
F&B Revenue $262,000 11.0% $300,000 11.4% $324,000 11.8% $360,000 12.6% $390,000 13.3% $396,000 13.2%
Other $180,000 7.6% $303,000 11.5% $306,000 11.1% $309,000 10.8% $312,000 10.6% $319,200 10.7%
Events & Catering $65,000 2.7% $62,400 2.4% $63,600 2.3% $64,800 2.3% $66,000 2.2% $67,200 2.2%
Total Revenue $2,377,000 100% $2,628,588 100% $2,746,113 100% $2,848,299 100% $2,935,679 100% $2,993,649 100%
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2019 Proforma Year1 Year2 Year 3 Year 4 Year 5Departmental Expenses
Rooms $668,193 28.1% $532,345 20.3% $572,937 20.9% $612,224 21.5% $649,653 22.1% $684,677 22.9%
Food & Beverage $246,341 10.4% $226,247 8.6% $233,267 8.5% $239,324 8.4% $244,326 8.3% $248,196 8.3%
Other Operated Depts & Rentals
$74,577 3.1% $78,521 3.0% $81,846 3.0% $84,876 3.0% $87,562 3.0% $89,864 3.0%
Total Departmental Expenses $989,111 41.6% $837,113 31.8% $888,052 32.3% $936,424 32.9% $981,541 33.4% $1,022,737 34.2%
Gross Operating Income $1,387,889 58.4% $1,791,475 68.2% $1,858,061 67.7% $1,911,875 67.1% $1,954,138 66.6% $1,970,912 65.8%
Undistributed Operating ExpensesAdministration & General $176,230 7.4% $174,000 6.6% $174,060 6.3% $174,120 6.1% $174,180 5.9% $174,240 5.8%
Marketing $1,134 0.0% $3,000 0.1% $3,060 0.1% $3,120 0.1% $3,180 0.1% $3,240 0.1%
Franchise Fees $222,283 9.4% $176,687 6.7% $184,726 6.7% $190,305 6.7% $195,091 6.6% $199,012 6.6%
Utility Costs $198,485 8.4% $204,953 7.8% $211,441 7.7% $217,061 7.6% $221,729 7.6% $225,373 7.5%
Property Operations & Maintenance
$36,356 1.5% $93,160 3.5% $96,854 3.5% $100,182 3.5% $103,097 3.5% $105,553 3.5%
Total Undistributed Operating Expenses
$634,488 26.7% $651,800 24.8% $670,141 24.4% $684,788 24.0% $697,277 23.8% $707,420 23.6%
Gross Operating Profit $753,401 31.7% $1,139,675 43.4% $1,187,921 43.3% $1,227,087 43.1% $1,256,861 42.8% $1,263,492 42.2%
Fixed ExpensesProperty Taxes $62,103 2.6% $66,000 2.5% $66,000 2.4% $66,000 2.3% $66,000 2.2% $66,000 2.2%
Insurance $60,792 2.6% $36,000 1.4% $36,000 1.3% $36,000 1.3% $36,000 1.2% $36,000 1.2%
Total Fixed Charges $122,895 5.2% $102,000 3.9% $102,000 3.7% $102,000 3.6% $102,000 3.5% $102,000 3.4%
Total Expenses $1,746,494 73.5% $1,590,913 60.5% $1,660,192 60.5% $1,723,212 60.5% $1,780,818 60.7% $1,832,157 61.2%
Amount Available for Debt Service & Other Fixed Charges
$630,506 26.5% $1,037,675 39.5% $1,085,921 39.5% $1,125,087 39.5% $1,154,861 39.3% $1,161,492 38.8%
Capital Replacement Reserve
$95,080 4.0% $105,144 4.0% $109,845 4.0% $113,932 4.0% $117,427 4.0% $119,746 4.0%
Management Fee $71,310 3.0% $78,858 3.0% $82,383 3.0% $85,449 3.0% $88,070 3.0% $89,809 3.0%
Net Operating Income (EBITDA)
$464,116 19.5% $853,674 32.5% $893,693 32.5% $925,706 32.5% $949,363 32.3% $951,937 31.8%
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as-sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate
Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Z0000000
RED LION HOTEL | POCATELLO
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MARKET COMPETITORS
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MARKET COMPETITORS
Address Sale Price Price Per Room Number of Keys Sale Date
TownePlace Suites | Marriot2376 Via Caporatti DrPocatello, ID 83201
$10,400,000 $111,827 93 12/13/13
AmeriTel Inn1440 Bench RdPocatello, ID 83201
$9,719,379 $65,671 148 8/6/12
Best Western1415 Bench RdPocatello, ID 83201
$7,800,000 $52,348 149 11/17/16
Clarion Inn1399 Bench RdPocatello, ID 83201
$7,300,000 $37,244.89 196 8/26/19
Red Lion Hotel | Pocatello(Part of Portfolio)1555 Pocatello Creek RdPocatello, ID 83201
$7,090,484 $47,269 150 7/31/98
Clarion Inn1399 Bench RdPocatello, ID 83201
$6,250,000 $31,887 196 8/17/17
Best Western1415 Bench RdPocatello, ID 83201
$5,600,000 $37,583 149 10/27/13
Ramada Inn133 W Burnside AvePocatello, ID 83201
$4,160,000 $35,862 116 9/20/07
Averages: $7,289,983 $52,461 - -
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CENSUS/SAMPLE - PROPERTIES & ROOMS PIPELINE
CENSUS SAMPLE SAMPLE % MARKET: Idaho
Properties Rooms Properties Rooms Rooms UNDER CONSTRUCTION PLANNING
Market: Idaho 351 24,578 189 18,099 73.6 Properties Rooms Properties Rooms
Market Class: Upper Midscale Class
94 8,745 81 8,158 93.3 6 572 22 2,030
Submarket: Idaho South Area
137 9,229 73 6,628 71.8
Submarket Scale: Midscale Chains
49 4,494 46 4,321 96.2
Competitive Set: Competitors 5 593 5 593 100.0
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MARKET COMPETITORS
Address:Red Lion Hotel | Pocatello1555 Pocatello Creek Rd
Pocatello, ID 83201
Sale Price $6,400,000
Price Per Room $42,667
Number of Keys 150
Sale Date -
Address:TownePlace Suites | Marriot
2376 Via Caporatti DrPocatello, ID 83201
Sale Price $10,400,000
Price Per Room $111,827
Number of Keys 93
Sale Date 12/13/13
Address:AmeriTel Inn
1440 Bench RdPocatello, ID 83201
Sale Price $9,719,379
Price Per Room $65,671
Number of Keys 148
Sale Date 8/6/12
Subject Property
33
Address:Best Western
1415 Bench RdPocatello, ID 83201
Sale Price $7,800,000
Price Per Room $52,348
Number of Keys 149
Sale Date 11/17/16
Address:Clarion Inn
1399 Bench RdPocatello, ID 83201
Sale Price $7,300,000
Price Per Room $37,244.89
Number of Keys 196
Sale Date 8/26/19
Address:
Red Lion Hotel | Pocatello(Part of Portfolio)
1555 Pocatello Creek RdPocatello, ID 83201
Sale Price $7,090,484
Price Per Room $47,269
Number of Keys 150
Sale Date 7/31/98
Subject Property
34
MARKET COMPETITORS
Address:Best Western
1415 Bench RdPocatello, ID 83201
Sale Price $5,600,000
Price Per Room $37,583
Number of Keys 149
Sale Date 10/27/13
Address:Clarion Inn
1399 Bench RdPocatello, ID 83201
Sale Price $6,250,000
Price Per Room $31,887
Number of Keys 196
Sale Date 8/17/17
Address:Ramada Inn
133 W Burnside AvePocatello, ID 83201
Sale Price $4,160,000
Price Per Room $35,862
Number of Keys 116
Sale Date 9/20/07
35
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as-sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate
Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Z0000000
RED LION HOTEL | POCATELLO
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MARKET OVERVIEW
38
MARKET OVERVIEW
NORTHWEST
National Parks Bring Wave of Tourism Spending to Wyoming, Montana
Recreational activities attract tourists to smaller locales while supply pressures mount in larger markets. Numerous parks and recreational activities will continue to lure tourists to Wyoming and Montana as social media platforms and tourism campaigns highlight local attractions. Wyoming, in particular, registered an increase in occupancy last year amid strong visitor spending. The upward trend should continue through 2019 as the state launches a new tourism campaign highlighting 150 years of women’s suffrage to attract more female travelers. On the other hand, supply pressures are mounting in Washington and Oregon, particularly in the major markets of Portland and Seattle. Both metros have more than 6.5 percent of their total room inventory underway, which will likely continue placing downward pressure on occupancy rates and stalling RevPAR growth in each market this year. Overall, strength in Wyoming and Montana should outweigh supply pressures in Washington and Oregon, supporting an uptick in regional occupancy.
Steady growth throughout Idaho and high yields will entice investors. Improving property performance and higher-than-regional-average returns will keep demand steady for properties throughout Idaho. The state offers first-year returns averaging in the 12 percent band based on property location and chain scale. Buyers in the state are targeting properties in Boise, Post Falls and Coeur d’Alene. The bulk of overall regional trading volume will remain in Washington and Oregon, with properties in Seattle and Portland highly sought after. Hotels in both markets trade with cap rates in the mid-10 percent area. Independent hotels in both Portland and Seattle attracted buyers, with opportunistic investors acquiring older properties built prior to the 1970s.
States: Idaho, Montana, Oregon, Washington, Wyoming
2019 Demand Growth3.8% Year-Over-Year Room Nights
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NORTHWEST
2019 REGIONAL HIGHLIGHTS
2.5%120bps20%
Percent of Inventory Under construction as of December 2018
• New regulations surrounding short-term rentals went into effect at the beginning of the year in Seattle. Anyone operating these rentals must have a regulatory license that lasts one year, on top of the license tax certificate. Additionally, owners can only operate up to two units, one of which must be the primary residence. These new regulations may sway some from placing their homes on sites like Airbnb,boding well for hotel demand.
• Expansions made to the Boise Centre will provide the city more capacity to host larger events more often. New meetings and events could bring more visitors to the state, benefiting area hotels.
• Expansions at the Glacier Park International Airport could bring additional visitors to Northwest Montana, particularly as more individuals travel to the state to visit Glacier National Park. Visitation to the park increased by 1.1 million visitors between 2013 and 2017.
Five-Year Occupancy Growth 2014-2019
Five-Year RevPAR Growth
*2018 Recent Openings; Under Construction as of December 2018 Sources: CoStar Group, Inc.; STR, Inc.; Real Capital Analytics
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NORTHWEST
MARKET OVERVIEW
2019 REGION FORECAST
Nearly 7,800 rooms are under construction throughout the region and an additional 8,600 rooms are expected to break ground within the next 12 months. Washington will lead delivery volume, receiving 4,700 of the rooms underway.
Supplyup 2.3%
Occupancyup to 30 bps
ADR up to 1.2%
RevPARup 1.6%
Investment
Building on a 30-basis-point increase recorded in 2018, occupancy throughout the Northwest region climbs to 64.7%.
Led by increases in Idaho and Washington, the average daily rate will edge up to $122.79. In the prior year, ADR rose 1.6%.
Steady increases in occupancy and the average daily rate will lift RevPAR up to $81.55 regionally. In 2018, the rate registered a 1.8 percent rise.
Heightened room demand in Wyoming will encourage some buyers to inject capital into the state. Smaller hotels of less than 100 rooms will be highly targeted, particularly in the Jackson and Cheyenne areas.
* Forecast Sources: CoStar Group, Inc.; STR, Inc.; Real Capital Analytics
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CREATED IN JULY 2019
DEMOGRAPHICS
Population 1 Mile 3 Mile 5 Mile2023 Projection
Total Population 11,541 55,392 73,642
2018 Estimate
Total Population 11,252 53,166 70,466
2010 Census
Total Population 10,978 52,016 68,770
2000 Census
Total Population 10,315 47,700 62,318
Daytime Population
2018 Estimates 11,611 67,850 83,082
Households 1 Miles 3 Miles 5 Miles2023 Projection
Total Households 4,303 21,205 27,683
2018 Estimate
Total Households 4,141 20,215 26,269
Average (Mean) Household Size 2.70 2.58 2.62
2010 Census
Total Households 4,047 19,865 25,776
2000 Census
Total Households 3,739 17,860 22,856
Housing Units 1 Miles 3 Miles 5 MilesOccupied Units
2023 Projects 4,303 21,205 27,683
2018 Estimate 4,371 21,591 27,982
Households by Income 1 Mile 3 Mile 5 Mile2018 Estimate
$200,000 or More 1.80% 2.10% 2.04%
$150,000 - $199,000 2.88% 2.78% 3.32%
$100,000 - $149,000 12.57% 10.18% 10.72%
$75,000 - $99,999 14.79% 12.35% 12.88%
$50,000 - $74,999 22.38% 18.94% 19.59%
$35,000 - $49,999 13.28% 13.48% 13.35%
$25,000 - $34,999 10.67% 11.46% 11.13%
$15,000 - $24,999 11.38% 14.00% 12.94%
Under $15,000 10.27% 14.69% 14.03%
Average Household Income $65,169 $60,959 $62,845
Median Household Income $54,645 $45,495 $48,193
Per Capita Income $24,220 $23,533 $23,893
Population Profile 1 Mile 3 Mile 5 MilePopulation 25+ by Education Level
2018 Estimate Population Age 25+ 7,074 33,421 44,162
Elementary (0-8) 1.08% 1.52% 1.53%
Some High School (9-11) 5.60% 6.57% 6.77%
High School Graduate (12) 25.81% 26.46% 25.90%
Some College (13-15) 27.50% 28.29% 28.70%
Associate Degree Only 7.42% 8.65% 8.80%
Bachelors Degree Only 22.19% 19.25% 19.20%
Graduate Degree 9.92% 8.58% 8.41%
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DEMOGRAPHICS
POPULATIONIn 2018, the population in your selected geography is 79,741. The population has changed by 12.47% since 2000. It is estimated that the population in your area will be 83,138.00 five years from now, which represents a change of 4.26% from the current year. The current population is 49.82% male and 50.18% female. The median age of the population in your area is 33.07, compare this to the US average which is 37.95. The population density in your area is 253.28 people per square mile.
RACE & ETHNICITYThe current year racial makeup of your selected area is as follows: 86.26% White, 0.98% Black, 0.29% Native American and 1.32% Asian/Pacific Islander. Compare these to US averages which are: 70.20% White, 12.89% Black, 0.19% Native American and 5.59% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 9.53% of the current year population in your selected area. Compare this to the US average of 18.01%.
HOUSEHOLDSThere are currently 29,331 households in your selected geography. The number of households has changed by 15.00% since 2000. It is estimated that the number of households in your area will be 30,882 five years from now, which represents a change of 5.29% from the current year. The average household size in your area is 2.65 persons.
INCOMEIn 2018, the median household income for your selected geography is $50,182, compare this to the US average which is currently $58,754. The median household income for your area has changed by 37.52% since 2000. It is estimated that the median household income in your area will be $57,916 five years from now, which represents a change of 15.41% from the current year. The current year per capita income in your area is $24,181, compare this to the US average, which is $32,356. The current year average household income in your area is $64,568, compare this to the US average which is $84,609.
EMPLOYMENTIn 2018, there are 27,940 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 60.61% of employees are employed in white-collar occupations in this geography, and 39.42% are employed in blue-collar occupations. In 2018, unemployment in this area is 3.67%. In 2000, the average time traveled to work was 18.00 minutes.
HOUSINGThe median housing value in your area was $160,495 in 2018, compare this to the US average of $201,842. In 2000, there were 17,640 owner occupied housing units in your area and there were 7,867 renter occupied housing units in your area. The median rent at the time was $387.
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RED LION HOTEL | POCATELLO
RED LION HOTEL | POCATELLO1555 Pocatel lo Creek Road | Pocatel lo, ID 83201
Eddy Nevarez
PRESENTED BY
Senior AssociateNational Hospitality Group
Encino OfficeCell: 818.339.6506
Office: 818.212.2690Fax: 818.212.2710
[email protected]: CA 01960485
www.marcusmillichap.com