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1530 SW Westport DrTopeka, KS 66604
Value Add Marriott 2-Hotel Kansas Portfolio
Asset ClassHotel & Hospitality
HREC Investment Advisors (“HREC IA”) is pleased to offer, to qualified investors, the opportunity to acquire 2 Marriott Properties, the Fairfield Inn & Suites Topeka and the Residence Inn Topeka, totaling 128 keys, located in Topeka, Kansas. These properties may be sold individually or as a portfolio.
overview of deal

Overview

The Fairfield Inn Topeka and Residence Inn Topeka offers a promising value-add opportunity while being located near significant demand generators such as the Stormont Vail Events Center, Topeka Zoo, and the NOTO Arts & Entertainment District.

 

The Property's top line offers room for growth, with Fairfield and Residence being ranked 5/6 and 3/5 for RevPAR in relation to its competitive set for October 2023 respectively. The affiliation with the 160 million Marriott Rewards System members provides additional benefits in expanding demand channels for bookings. An investor can also capitalize on opportunities to revamp operations and implement cost control initiatives.

 

Topeka’s corporate landscape includes a Goodyear Tire Distribution Center, Target Distribution Center, Frito-Lay Manufacturing Center, and more, Additionally, the city is home to Washburn University – a public university with 6,100 students. Along with a strong corporate and education presence, Topeka is home to highly esteemed healthcare systems including Stormont Vail Health and The University of Kansas Health System St. Francis Campus. These two campuses combine for a total of 964 beds.

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Investment Highlights

Unique, Long-Term, Marriott Franchise Agreement: The Hotels benefit from a 14-year franchise license expiring in 2037 which is very uncommon for Marriott products of this age. The Residence Inn will receive an additional 5-year term once the PIP is completed. After the future franchise agreement expires, the Residence Inn has great potential to be converted to multi-family.

 

Upside from Replacing Existing Management: An investor can seek to revamp the operations of the Hotels, implement strategic cost control initiatives, and employ more aggressive yield management strategies.

 

Value-Add Offering: The Hotels will require a full PIP upon sale, improving the standing of the properties in relation to the competitive set.

 

Terrific Location to Major Demand Generators: The Hotels are less than five miles from Washburn University, The Stormont Vail Events Center, and Topeka Zoo.

Proximate to Portfolio Asset: The Hotels are located within 900 feet of each other. The purchase of both Properties allows for shared expenses and economies of scale for further cost control.

 

Competitive Set Penetration: According to the October 2023 TTM, the Fairfield Inn's RevPAR penetrated at 76.2%, while the Residence Inn RevPAR penetrated at 132.5%, exhibiting great potential for a new owner to improve the Fairfield Inn's top-line.

 

Offered Well Below Replacement Cost

 

No New Supply

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1530 SW Westport DrTopeka, KS 66604

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