Quality Inn & Suites Pawleys Island 7903 Ocean Hwy
97 Hotel Rooms Online Auction Sale Pawleys Island, SC 29585
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INVESTMENT HIGHLIGHTS
- Fee simple interest in a two-story, 97-room hospitality building with an exterior corridor situated over a spacious 2.94-acre lot in Pawleys Island.
- Ideal opportunity to acquire an asset in a limited hotel inventory market located close to tourist destinations that see ±20 million annual visitors.
- Desirable upside in occupancy, ADR, and RevPAR upon the completion of a minimal change-in-ownership PIP to bring property-level performance metrics.
- Conveniently located with high visibility on Ocean Hwy in front of 26,766 VPD with access to Pawleys Island Beach, Murrells Inlet, and Myrtle Beach.
- Revitalizing abilities for a hands-on operator to add value by increasing revenues on an acquisition unencumbered by debt and third-party management.
- Excellently equipped with on-site amenities, including a business center, meeting rooms, outdoor pool, high-speed internet, free breakfast, and more.
EXECUTIVE SUMMARY
Colliers, as an exclusive representative of the seller, is pleased to present to qualified investors the Quality Inn & Suites Pawleys Island, located at 7903 Ocean Highway, Pawleys Island, South Carolina, front and center to about 26,800 vehicles per day. The Choice Hotel is a 97-key, two-story, exterior corridor property built in 1972 and later renovated in 2002 and sits on a 2.94-acre parcel. The asset benefits from its strategic location off Ocean Highway. 7903 Ocean Highway is a limited-service hotel equipped with ideal amenities, including an outdoor pool, business center, meeting rooms, high-speed internet, complimentary breakfast, and more. The property is positioned 3 miles from the Pawleys Island oceanfront, 11 miles from Murrells Inlet, and 25 miles from Myrtle Beach. Quality Inn & Suites Pawleys Island is offered with fee simple interest, unencumbered by debt and unencumbered by third-party management.
The offering presents a rare opportunity to acquire an asset in a market with limited hotel inventory close to destination tourist markets such as Pawleys Island, Murrells Inlet, and Myrtle Beach. Current ownership completed a major renovation in 2020, and the hotel is expected to trade with a minimal PIP to a new purchaser. A new purchaser should be able to anticipate a long-term franchise agreement upon successful review of their application.
Prospective purchasers could expect the property to see an uptick in occupancy, ADR, and, therefore, RevPAR upon the completion of a minimal change-in-ownership PIP to bring property-level performance metrics in line with the competitive hotels as defined in the STR report. The competitive set includes Quality Inn & Suites Georgetown, Super 8 Myrtle Beach/ Market Common Area, Econo Lodge Georgetown, Best Western Pawleys Island, Motel 6 Georgetown, SC-Marina, Sea Mystique Murrells Inlet a Ramada by Wyndham. For reference, in 2022, the property achieved a RevPAR of $42.36, translating to a RevPAR penetration index of 84%. In 2023, the property achieved a RevPAR of $36.92, translating to a RevPAR penetration index of 70%. The RevPAR Penetration Indices present to an opportunistic, hands-on owner-operator an opportunity to complete minimal renovations at the hotel and make a concerted effort in sales and marketing to drive RevPAR and increase returns.
Property tours are available by appointment only. Please contact the broker to schedule.
The offering presents a rare opportunity to acquire an asset in a market with limited hotel inventory close to destination tourist markets such as Pawleys Island, Murrells Inlet, and Myrtle Beach. Current ownership completed a major renovation in 2020, and the hotel is expected to trade with a minimal PIP to a new purchaser. A new purchaser should be able to anticipate a long-term franchise agreement upon successful review of their application.
Prospective purchasers could expect the property to see an uptick in occupancy, ADR, and, therefore, RevPAR upon the completion of a minimal change-in-ownership PIP to bring property-level performance metrics in line with the competitive hotels as defined in the STR report. The competitive set includes Quality Inn & Suites Georgetown, Super 8 Myrtle Beach/ Market Common Area, Econo Lodge Georgetown, Best Western Pawleys Island, Motel 6 Georgetown, SC-Marina, Sea Mystique Murrells Inlet a Ramada by Wyndham. For reference, in 2022, the property achieved a RevPAR of $42.36, translating to a RevPAR penetration index of 84%. In 2023, the property achieved a RevPAR of $36.92, translating to a RevPAR penetration index of 70%. The RevPAR Penetration Indices present to an opportunistic, hands-on owner-operator an opportunity to complete minimal renovations at the hotel and make a concerted effort in sales and marketing to drive RevPAR and increase returns.
Property tours are available by appointment only. Please contact the broker to schedule.
OFFERING MEMORANDUM Click Here to Access
DATA ROOM Click Here to Access
- Offering Memorandum
- Operating and Financial Statements
- Title and Insurance
- Third Party Reports
- Purchase Agreement
- Property Information
PROPERTY FACTS
| Sale Type | Investment |
| Sale Condition | Auction Sale |
| Type of Ownership | Fee Simple |
| Property Type | Hospitality |
| Property Subtype | Hotel |
| Building Class | C |
| Lot Size | 2.94 AC |
| Building Size | 32,527 SF |
| No. Rooms | 97 |
| No. Stories | 2 |
| Year Built/Renovated | 1972/2002 |
| Parking Ratio | 4.86/1,000 SF |
| Corridor | Exterior |
AMENITIES
- Business Center
- Pool
- High Speed Internet Access
- Patio
- Meeting Event Space
- Public Access Wifi
- Smoke-Free
ROOM MIX INFORMATION
| DESCRIPTION | NO. ROOMS | DAILY RATE | SF |
|---|---|---|---|
| Suite | 2 | $185.57 CAD | - |
| Guest Room | 95 | $168.30 CAD | - |
ABOUT MYRTLE BEACH SOUTH
South Myrtle Beach is part of The Grand Strand, which includes the most popular beaches in South Carolina. The Grand Strand is made up of 14 unique beach communities and 60 miles of sand from North Myrtle Beach and Atlantic Beach on the north end to Surfside Beach and Pawleys Island in the south.
South Myrtle Beach is home to the 1.2-mile-long Oceanfront Boardwalk and Promenade, the focal point of things to do in Myrtle Beach. The Boardwalk is home to festivals, events, beach shops, and restaurants serving freshly caught seafood along the ocean’s edge.
The Boardwalk is also home to SkyWheel Myrtle Beach, a 187-foot-tall observation wheel. A ride on the wheel provides expansive views over the Atlantic Ocean from its 42 glass-enclosed, temperature-controlled gondolas.
Surfside Beach, long known as the Grand Strand’s premier family beach, offers a more relaxed atmosphere than the excitement of the Boardwalk. Surfside’s seven public parks provide abundant opportunities for a game of tennis, bocce, shuffleboard, and more. In 2016, Surfside Beach officially became the first Autism-Friendly Travel Destination in the world.
The area is also well known for its abundance of excellent golf courses, many designed by world-famous golfers including Arnold Palmer, Jack Nicklaus, Robert Trent Jones, and Greg Norman.
Myrtle Beach International Airport provides scheduled service on both legacy and low-cost carriers including Allegiant Air, American Airlines, Delta, Frontier, Southwest, Spirit, and United. Road-trippers can access the area by one of the numerous arteries that branch off Interstate 95.
PROPERTY TAXES
| Parcel Number | 04-0208-024-01-00 | Improvements Assessment | $161,186 CAD |
| Land Assessment | $42,721 CAD | Total Assessment | $203,907 CAD |
ZONING
| Zoning Code | Highway Commercial |
SALE ADVISORS
SALE ADVISORS
Prashant Merchant, Executive Vice President
(757) 589-6954
Contact
Prashant Merchant joined Colliers as a Senior Vice President in January 2021. Formerly, Prashant led The Merchant Hotel Group at Marcus & Millichap as a Vice President of Investments and a Director at the firm’s Hospitality Division. Prashant is based in Richmond, Virginia with a primary focus on the analysis and disposition of Hotels/Motels in the Mid-Atlantic and Southeast markets with an emphasis on exclusive seller representation. He was promoted to Executive Vice President at Colliers in May of 2022.
As a hospitality investment specialist, Prashant advises clients on the acquisition and disposition of hotels/motels in the Mid-Atlantic and Southeast regions, with an emphasis on exclusive seller representation. Prashant provides his clients with access to the largest pool of regional, national, and international qualified investors to create a competitive bidding environment upon asset disposition. Prashant has completed acquisitions and dispositions under all major hotel franchises including Hilton, Marriott, Best Western, Choice, and Wyndham. He and his team, Merchant Hotel Group, focus on mid-market client dispositions of limited, select, and full-service hotels across economy, midscale, and upper midscale categories. Prashant is committed to the highest level of client service with direct involvement in every transaction including franchise negotiation and financing.
Prior to becoming an investment sales broker in 2016, Prashant had been involved as a principal in real estate acquisitions, refinances, and DPOs. Prashant remains involved as a passive investor across a diverse stream of real estate investments. He has worked with lenders, franchisors, buyers, and sellers, regionally and nationally, and produced positive results for his brokerage clients as if they were his own businesses. Prashant delivers real time information to his clients about the hotel/motel market conditions and the best ways to capitalize on forward-looking trends. He has thorough experience in franchise conversions, alternative-use / hotel-to-housing conversions, and intimate knowledge of how to improve hotel operations. His team also offers complimentary pricing evaluations and consultations to ownership groups contemplating a hotel disposition or curious of the current market value of their property.
As a hospitality investment specialist, Prashant advises clients on the acquisition and disposition of hotels/motels in the Mid-Atlantic and Southeast regions, with an emphasis on exclusive seller representation. Prashant provides his clients with access to the largest pool of regional, national, and international qualified investors to create a competitive bidding environment upon asset disposition. Prashant has completed acquisitions and dispositions under all major hotel franchises including Hilton, Marriott, Best Western, Choice, and Wyndham. He and his team, Merchant Hotel Group, focus on mid-market client dispositions of limited, select, and full-service hotels across economy, midscale, and upper midscale categories. Prashant is committed to the highest level of client service with direct involvement in every transaction including franchise negotiation and financing.
Prior to becoming an investment sales broker in 2016, Prashant had been involved as a principal in real estate acquisitions, refinances, and DPOs. Prashant remains involved as a passive investor across a diverse stream of real estate investments. He has worked with lenders, franchisors, buyers, and sellers, regionally and nationally, and produced positive results for his brokerage clients as if they were his own businesses. Prashant delivers real time information to his clients about the hotel/motel market conditions and the best ways to capitalize on forward-looking trends. He has thorough experience in franchise conversions, alternative-use / hotel-to-housing conversions, and intimate knowledge of how to improve hotel operations. His team also offers complimentary pricing evaluations and consultations to ownership groups contemplating a hotel disposition or curious of the current market value of their property.
Nic Wade, Vice President
(757) 672-3692
Contact
Nic Wade is an investment sales broker who joined Colliers as an Assistant Vice President in January 2021. Formerly, Nic was a Director at Marcus & Millichap’s Hospitality Division in the firm’s Richmond, Virginia office. Nic was promoted to Vice President at Colliers in May of 2022.
As a hospitality investment specialist, Nic advises clients on the acquisition and disposition of hotels/motels in the Mid-Atlantic and Southeast regions, with an emphasis on exclusive seller representation. Nic provides his clients with access to the largest pool of regional, national, and international qualified investors to create a competitive bidding environment upon asset disposition. Nic has completed acquisitions and dispositions under all major hotel franchises including Hilton, Marriott, Best Western, Choice, and Wyndham. He and his team, Merchant Hotel Group, focus on mid-market client dispositions of limited, select, and full-service hotels across economy, midscale, and upper midscale categories. Merchant Hotel Group also offers complimentary pricing evaluations and consultations to ownership groups contemplating a hotel disposition or curious of the current market value of their property.
Nic is a native Virginian born and raised in the Hampton Roads area and currently residing in Richmond. He is a graduate of Christopher Newport University, where he earned degrees in Political Science and American Constitutional Studies. Prior to joining Marcus & Millichap, Nic held a research role investigating commercial real estate sales, leases, and market trends as a Research Associate at CoStar. He is a licensed real estate salesperson in Virginia.
As a hospitality investment specialist, Nic advises clients on the acquisition and disposition of hotels/motels in the Mid-Atlantic and Southeast regions, with an emphasis on exclusive seller representation. Nic provides his clients with access to the largest pool of regional, national, and international qualified investors to create a competitive bidding environment upon asset disposition. Nic has completed acquisitions and dispositions under all major hotel franchises including Hilton, Marriott, Best Western, Choice, and Wyndham. He and his team, Merchant Hotel Group, focus on mid-market client dispositions of limited, select, and full-service hotels across economy, midscale, and upper midscale categories. Merchant Hotel Group also offers complimentary pricing evaluations and consultations to ownership groups contemplating a hotel disposition or curious of the current market value of their property.
Nic is a native Virginian born and raised in the Hampton Roads area and currently residing in Richmond. He is a graduate of Christopher Newport University, where he earned degrees in Political Science and American Constitutional Studies. Prior to joining Marcus & Millichap, Nic held a research role investigating commercial real estate sales, leases, and market trends as a Research Associate at CoStar. He is a licensed real estate salesperson in Virginia.
Ben Browndorf, Associate
(919) 809-6203
Contact
Ben joined Colliers in February of 2022 as an associate on the Capital Markets team. He specializes in the disposition of hotels and expanding the Company’s footprint throughout the Carolinas region.
Ben’s hospitality experience originates within the luxury hotel management business. Prior to joining Colliers, Ben held multiple management positions for Umstead Hotel and Spa in Cary, North Carolina. Ben received his Bachelor of Arts in Hospitality and Tourism Management from the University of North Carolina Wilmington. In addition, he received a certificate in Hospitality and Tourism Management from Florida Atlantic University College of Business and a certificate in Hospitality Manager: Leadership from the American Hotel & Lodging Association.
Ben’s hospitality experience originates within the luxury hotel management business. Prior to joining Colliers, Ben held multiple management positions for Umstead Hotel and Spa in Cary, North Carolina. Ben received his Bachelor of Arts in Hospitality and Tourism Management from the University of North Carolina Wilmington. In addition, he received a certificate in Hospitality and Tourism Management from Florida Atlantic University College of Business and a certificate in Hospitality Manager: Leadership from the American Hotel & Lodging Association.
Luke McKown, Associate
(804) 237-8095
Contact
Luke McKown is an Associate with Colliers, based in Richmond, VA. Luke provides his clients access to the largest pool of qualified investors locally, nationally, and internationally, creating maximum exposure for their properties and a competitive bidding environment. Prior to joining Colliers, Luke was a Multifamily Research Associate at CoStar Group capturing daily rent and vacancy data while also analyzing multifamily market trends across the country. Luke was born and raised in Charleston, WV and is a graduate of Hampden-Sydney College with a degree in Economics & Business. The team has achieved more than $400 million in sales volume across the United States. They focus on exclusive seller representation and on the analysis and disposition of hotels and motels in the Mid-Atlantic, Midwest, and Southeast markets.
ABOUT THE AUCTION PLATFORM
Ten-X Commercial is the leading end-to-end digital transaction platform for commercial real estate. With over $26bn sold, Ten-X’s platform empowers brokers, sellers and buyers with data-driven technology and comprehensive marketing tools to expand market visibility and decrease time to close. Ten-X consistently yields trade rates at two times the industry average. Ten-X expedites the entire CRE transaction timeline by enabling brokers and sellers to tap into a digital platform that makes it easy to onboard properties, evaluate the success of complimentary omnichannel marketing campaigns and follow up on the strongest pre-qualified leads. Buyers are precision-matched with properties aligned with their investment goals, with unprecedented access to market analysis and due diligence documents to help them securely acquire properties online, with confidence.
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AUCTION CONTACT
Sophy Cardenas
Contact
Auctioneer License:
Ten-X Samantha Kristine Corbat RE Brkr 21233. Ten-X Auction Firm 4085. Arlene Richardson Auctioneer 4820
