1. Competitive ADR with Strong Turnaround Potential:

Despite operational challenges, the Wingate’s ADR performance remains competitive within its submarket, nearing parity with the comp set at 98.4% ARI in 2023. With targeted efforts to improve occupancy and enhance RevPAR, there’s significant opportunity for growth. The 2023 MPI (Occupancy) of 65.2 reflects the untapped potential, especially with strategic improvements in marketing and sales.

2. Undervalued Asset with Significant Upside:

Priced at $48,000 per room, this property represents a highly attractive acquisition target compared to regional construction costs. The current market distress provides an investor with the chance to acquire an undervalued asset, with substantial upside potential through operational improvements, revenue management, and cost control.

3. Minimal PIP Requirements:

The Wingate underwent key renovations in 2020, significantly reducing the need for further property improvement plan (PIP) investments. With many of the core structural and aesthetic updates already completed, investors will face minimal initial capital expenditure, allowing for a quicker path to profitability.

4. Operational Efficiency Opportunities:

The property has maintained an impressive Gross Operating Profit of 42.2% in 2023 despite revenue challenges, demonstrating efficient cost control and lean operations. With optimized property management, marketing, and resource allocation, the property is well-positioned to further enhance its operating margins as occupancy improves.

5. Strategic Location and Market-Driven Demand:

Situated in the growing Roseville submarket, this property is strategically located near key demand drivers, including corporate hubs and major transit routes connecting to Detroit. The region is experiencing increased demand from transient and corporate travelers, providing the Wingate a prime opportunity to capture additional market share by targeting these groups with tailored offers and improved revenue management practices.