La Quinta Inns & Suites Selma/Smithfield I-95 1695 Outlet Center Dr

Property listed by Lawrence Shaw | License: NC 143281
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Colliers, as an exclusive representative of the ownership, is pleased to present to qualified investors for their acquisition consideration the La Quinta Inn & Suites Selma/Smithfield I-95, located at 1695 Outlet Center Dr, Selma, NC 27576. The asset is located at the intersection of Interstate 95 (44,000 vehicles per day), Highway 70 (18,000 vehicles per day), and Outlet Center Dr (10,000 vehicles per day). The asset is located 1.5 miles from the Carolina Premium Outlets in Smithfield, a 458,000-squarefoot shopping destination which is home to approximately 80 national tenants.
The La Quinta Inn & Suites is a four-story, interior corridor, limited-service midscale asset comprised of 75 keys. The property consists of 42,888 square feet and sits on 1.98 acres. It is offered fee-simple and unencumbered of management. Originally built in 1998 as a Hampton Inn by Hilton, the subject property was fully renovated in 2020/2021 as part of a major conversion to the newest prototype from Wyndham. Among the renovations included an expansive rehabilitation of the exterior façade to include the Del Sol brown titles, exterior paint and lightning, renovation of all common areas including the lobby, front desk, market, breakfast area, corridors, and fitness center, as well as a comprehensive renovation of guest rooms and bathrooms, including new flooring, cased goods/furniture, soft goods, lightning, paint, vanities, mirrors, and tiles. The subject property is offered with extremely minimal change-in-ownership PIP, if any, to a new prospective investor. The offering presents a unique opportunity for investors to leverage the extensive renovation completed by the seller to reposition the hotel as a leader within its competitive set through hands-on, aggressive sales and management efforts. While the property has seen modest ramp-up and maintained profitability following the conversion, operational challenges at the hotel have led to the hotel ranking at 7th of 7 for RevPAR in 2021, 6th of 7 for RevPAR in 2022, and 6th of 7 for RevPAR in 2023 versus a competitive set of Best Western Smithfield Inn, Comfort Inn Smithfield, Holiday Inn Express & Suites Smithfield, Fairfield Inn & Suites Smithfield, Country Inn & Suites Smithfield, and Hampton by Hilton Smithfield. Furthermore, upon changing the STR competitive set in 2024, the hotel still currently ranks as 4th of 6 for RevPAR in the trailing-12 months preceding May 2024, versus a competitive set of Quality Inn Selma, Best Western Smithfield Inn, Comfort Inn Smithfield, Fairfield Inn & Suites Smithfield, and Country Inn & Suites Smithfield. Given the recent comprehensive renovations completed by the seller, a sophisticated operator may be able to drive RevPAR significantly higher by leveraging the superior quality of the asset versus it’s competitive set. Versus its newest competitive set, the hotel achieved RevPAR penetration of just 92%, 89% and 91% (rounded) in the trailing-12 months behind May 2024 , 2023, and 2021, respectively.