Professional Documents
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Pennsylvania: Pittsburgh Washington
Pennsylvania: Pittsburgh Washington
Pennsylvania: Pittsburgh Washington
PITTSBURGH
WASHINGTON a n i a
Pe n n s y l v
Offering Memorandum
Chase Perry
Associate
chase.perry@hunterhotels.net
770-916-0033
able
TOF
CONTENTS
4 Executive Summary
7 Property Description
11 Financial Overview
13 Market Summary
21 About Hunter
Excellent Location
The SpringHill Suites Pittsburgh Washington is located just off Interstate 79
approximately 30 miles south of Downtown Pittsburgh. The hotel is centrally located, just Year Built: 2000
five minutes away from the Hollywood Casino at the Meadows which is a standardbred
Structure:
harness racing track and slot machine casino that attracts visitors from all over the
region. In addition to leisure and tourism demand from the casino, Washington Hospital, 4 Stories
less than a mile from the hotel, drives long term demand to the SpringHill Suites. The
251-bed complex serves South Pittsburgh and the entire area surrounding Washington.
The property is surrounded by the only major retail corridor in the city and is just a mile
from Downtown Washington, home to Washington & Jefferson College in addition to a
wide variety of historical sites and museums. # of Rooms: 86
Institutional Marriott Branded Asset
The SpringHill Suites brand is Marriott’s all-suite hotel brand. One of only three Marriott
branded assets in the Washington area, the hotel is primed to capitalize off of the
industry leading rewards and reservation system which boasts over 120 million members.
Premium branded assets are set to recover from the COVID-19 Pandemic faster than the Ownership: Fee Simple
rest of the market due to their large rewards and reservation systems as well as name
recognition.
PENNSYLVANIA TROLLEY
MUSEUM
Franchise License
The franchise license is considered an exceptionally valuable
asset of the SpringHill Suites Pittsburgh Washington. It provides
a high level of traveler allegiance and recognition, an excellent
computerized reservation system, and Marriott’s popular Marriott
Bonvoy program where guests earn free lodging.
Guest Rooms
Spacious suites allow separate living and sleeping areas and feature
custom designed items through the west elm® partnership. A sleep sofa
with trundle and accent pillow offers additional space equivalent to a king
size bed surface area. Other items include an ottoman with tray, floor
lamp, desk lamp and task chair. The spa-like, spacious one compartment
bathroom features a walk-in shower.
Dining
The SpringHill Suites Pittsburgh Washington features hot complimentary
breakfast with a variety of proteins, fresh fruit and healthy options with
available daily also being offered.
Additional Amenities
The SpringHill Suites Pittsburgh Washington has an on-site fitness center,
which offers guests 24-7 access to treadmills, ellipticals, exercise bikes,
free weights, and more. In addition, there is an indoor pool for guests’
convenience. The SpringHill Suites Pittsburgh Washington is equipped with
one meeting room which totals 800 square feet.
Period Subject Comp. Set Index Subject Comp. Set Index Subject Comp. Set Index
Year End 2019 84.2% 63.4% 132.8% $86.58 $89.23 97.0% $72.88 $56.56 128.9%
Year End 2020 35.5% 40.5% 87.7% $80.81 $75.18 107.5% $28.67 $30.43 94.2%
Year End 2021 54.3% 53.5% 101.5% $82.56 $80.64 102.4% $44.86 $43.17 103.9%
Year End 2020 -57.8% -36.1% -34.0% -6.7% -15.7% 10.8% -60.7% -46.2% -26.9%
Year End 2021 53.1% 32.3% 15.8% 2.2% 7.3% -4.7% 56.5% 41.9% 10.3%
Year End 2021 Year End 2021 Year End 2021 Subject Hotel RevPAR
COURTYARD PITTSBURGH
WASHINGTON/MEADOW LANDS
Rooms 86 86 86 86
Other Operated Departments $46,668 2.0% $25,464 1.7% $22,839 2.5% $22,100 1.5%
Total Revenue $2,289,861 100.0% $1,459,296 100.0% $929,363 100.0% $1,438,371 100.0%
Departmental Expenses
Other Operated Departments $44,091 94.5% $83,223 326.8% $61,047 267.3% $80,794 365.6%
Total Expenses $661,414 28.9% $512,258 35.1% $477,097 51.3% $603,972 42.0%
Gross Operating Income $1,628,447 71.1% $947,037 64.9% $452,266 48.7% $834,399 58.0%
Administrative & General $268,520 11.7% $126,431 8.7% $174,904 18.8% $172,444 12.0%
Franchise Fees $177,772 7.8% $118,670 8.1% $72,007 7.7% $101,277 7.0%
Sales & Marketing $45,312 2.0% $57,299 3.9% $80,529 8.7% $58,003 4.0%
Repairs & Maintenance $124,176 5.4% $75,332 5.2% $98,127 10.6% $140,223 9.7%
Total Undistributed Operating Expenses $717,786 31.3% $440,597 30.2% $514,399 55.3% $597,387 41.5%
Gross Operating Profit $910,661 39.8% $506,440 34.7% -$62,133 -6.7% $237,012 16.5%
Fixed Charges
Management Fees (1) $68,696 3.0% $43,779 3.0% $27,881 3.0% $43,151 3.0%
Total Fixed Charges $246,232 10.8% $119,229 8.2% $141,753 15.3% $173,680 12.1%
Reserve for Replacement (2) $91,594 4.0% $58,372 4.0% $37,175 4.0% $57,535 4.0%
Net Operating Income $572,835 25.0% $328,839 22.5% -$241,061 -25.9% $5,797 0.4%
(1) Management Fees have been assumed to be 3.00% of Total Revenue.
(2)Replacement Reserve has been assumed to be 4.00% of Total Revenue.
Rooms 86 86 86 86 86
Revenue Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent
Rooms $1,951,189 98.2% $2,204,544 98.2% $2,437,642 98.2% $2,517,650 98.2% $2,586,094 98.2%
Other Operated Departments $36,624 1.8% $39,464 1.8% $43,637 1.8% $45,069 1.8% $46,294 1.8%
Total Revenue $1,987,813 100.0% $2,244,007 100.0% $2,481,278 100.0% $2,562,719 100.0% $2,632,388 100.0%
Departmental Expenses
Rooms $479,759 24.6% $511,940 23.2% $560,574 23.0% $573,352 22.8% $577,503 22.3%
Other Operated Departments $34,602 94.5% $37,285 94.5% $41,227 94.5% $42,580 94.5% $43,738 94.5%
Total Expenses $514,361 25.9% $549,224 24.5% $601,801 24.3% $615,932 24.0% $621,241 23.6%
Gross Operating Income $1,473,453 74.1% $1,694,783 75.5% $1,879,478 75.7% $1,946,787 76.0% $2,011,147 76.4%
Administrative & General $255,094 12.8% $249,992 11.1% $254,992 10.3% $260,092 10.1% $265,294 10.1%
Franchise Fees $154,631 7.8% $174,709 7.8% $193,182 7.8% $199,523 7.8% $204,947 7.8%
Sales & Marketing $46,218 2.3% $47,143 2.1% $48,085 1.9% $49,047 1.9% $50,028 1.9%
Repairs & Maintenance $126,660 6.4% $129,193 5.8% $131,777 5.3% $134,412 5.2% $137,100 5.2%
Utilities $104,046 5.2% $106,127 4.7% $108,250 4.4% $110,415 4.3% $112,623 4.3%
Total Undistributed Operating Expenses $686,649 34.5% $707,164 31.5% $736,286 29.7% $753,488 29.4% $769,992 29.3%
Gross Operating Profit $786,804 39.6% $987,620 44.0% $1,143,192 46.1% $1,193,298 46.6% $1,241,156 47.1%
Fixed Charges
Insurance $28,541 1.4% $29,111 1.3% $29,694 1.2% $30,288 1.2% $30,893 1.2%
Taxes $152,546 7.7% $155,597 6.9% $158,709 6.4% $161,883 6.3% $165,121 6.3%
Management Fees $59,634 3.0% $67,320 3.0% $74,438 3.0% $76,882 3.0% $78,972 3.0%
Total Fixed Charges $240,721 12.1% $252,029 11.2% $262,841 10.6% $269,052 10.5% $274,986 10.4%
EBITDA $546,083 27.5% $735,591 32.8% $880,351 35.5% $924,246 36.1% $966,170 36.7%
Reserve for Replacement $79,513 4.0% $89,760 4.0% $99,251 4.0% $102,509 4.0% $105,296 4.0%
Net Operating Income $466,570 23.5% $645,831 28.8% $781,100 31.5% $821,737 32.1% $860,874 32.7%
Hunter and their respective affiliates, officers, and directors neither warrants nor guarantees the results of these projections and analyses since unanticipated events and/or circumstances may occur. All potential investors must conduct
and rely upon their own due diligence as well as underwriting with respect to estimating the future operating performance of the property.
STEP 1
Navigate to www.tenx.com
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STEP 2
Enter your email and click on “Continue”
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STEP 3
Enter your name, email, preferred
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your free account.
17 / PREPARED BY HUNTER HOTEL ADVISORS /
User Guide
REGISTER TO BID
If a property is being sold through Live Bid or Managed Bid, you must register for that specific asset and acquire approval to bid. On the property detail page, click
on “Register to Bid.” If you are logged in, you’ll automatically be taken to the registration process, whereas non-logged in users will first need to provide their
Ten-X account credentials to proceed.
2. Upload proof of funds documents 8. Review participation terms (Accept and Agree)
3. Provide the buyer information to be reflected on purchase 9. Complete participation terms checklist
documents
Acceptable forms of POF (Must have account holder’s name and date):
• Bank statement(s)
• Brokerage account statement(s)
• Bank deposit letters
• Standby lines of credit
While the financial, operational, property description, projections and other Confidential
information herein is compiled from sources believed to be reliable, neither Broker All information contained in this offering is confidential in nature and must be held
nor Owner guarantee, represent or warrant its accuracy or completeness. Because in the strictest confidence, except information which is a matter of public record.
of the foregoing, and since the Property is being offered on an “As Is, Where Is” Duplication or reproduction of any of the contents of this document or other
basis, Purchaser should use such information solely to facilitate his investigation information provided to you by Broker about this property, without the express
and must make independent investigations, projections and conclusions regarding written permission of Broker, is prohibited.
the acquisition of the Property without reliance on this offering memorandum.
As to pro forma projections, these were prepared by Broker based on many
assumptions and events over which owner and broker have no control and are
Return of Information
This memorandum is the property of Hunter Hotel Advisors, and is intended to
not guaranteed. Buyers should use such projections for an initial review only and
be used only by such parties to whom Broker has delivered the memorandum
are urged to do their own study and projections before taking action relative to the
or to whom Broker has approved such delivery. If, after review, you have no
Property.
interest in purchasing the property at this time, KINDLY RETURN OR DESTROY
THIS MEMORANDUM and all other information provided to you by Seller, Broker or
No liability is assumed for errors and omissions, misstatements of facts, prior
others to Broker at your earliest convenience.
sale, change-of-price or withdrawal from the market without notice
Orlando, FL
Shamir Patel, Vice President
Shamir.Patel@HunterHotels.net