Overview
HREC Investment Advisors (“HREC IA”) is pleased to offer, to qualified investors, the opportunity to acquire the 108-key MainStay Suites Detroit Auburn Hills, located in Auburn Hills, Michigan.
The Property is located less than three miles away from the junction of Interstate 75 and Route 59, allowing for easy access to the rest of Oakland County and downtown Detroit. The Detroit area is a significant hub for business and global trade, particularly known for hosting the major automobile companies General Motors, Ford, and Chrysler. The Detroit metropolitan area, spanning six counties, has a population of approximately 4.4 million people.
Auburn Hills is home to the North American Headquarters of Stellantis and other prominent companies such as BorgWarner, GKN Automotive, TI Fluid Systems, and FANUC America. Many of these companies support the automotive industry, given that the North American headquarters of Stellantis and a major facility for GM are in the Auburn Hills area. The area also features a strong education presence, led by Oakland University. Leisure options include LEGOLAND Discovery Center Michigan, SEA LIFE Michigan Aquarium, DTE Energy Music Theatre, Meadow Brook Amphitheatre, upscale retail stores, golf courses, lakes, and Great Lakes Crossing Outlets. As a Detroit suburb, the MainStay Suites is a short drive away from Detroit’s major attractions, including the Henry Ford Museum, Detroit Zoo, Ford Field, and Comerica Park.
The three-story MainStay Suites features interior corridors and provides extended-stay amenities, including a fitness center, free breakfast, and laundry facilities. Each apartment-style suite is well-equipped with an in-room kitchen, desk, coffee maker, and complimentary Wi-Fi. The affliation with the Choice Privileges rewards system provides additional benefits in expanding demand channels for bookings. This loyalty program has more than 50 million members and continues to grow.
Investment Highlights
- Highly Sought After Location and Low Cost Basis: Not only is the Hotel in the Detroit Metro area, a very popular and rapidly growing market for hotels, but the Hotel can be purchased at an attractive basis, in contrast to other Detroit submarkets. Metro Detroit has seen notable traction in hotel sales this year, making it a highly attractive submarket to invest in.
- Highly Visible Asset: The Property is highly visible from the respective major throughway, I-75, and garners significant foot traffic through this accessibility.
- Extended Stay Model: The Property’s extended stay model makes it a very popular selection for long-term guests in the area drawn in from extended projects while extended stay hotels are also currently the most popular hotel asset class for transactions.
- Upside From Replacing Existing Management: The Property presents an opportunity for an investor to purchase the Hotel unencumbered by a management agreement but encumbered by the MainStay flag. An investor possesses the opportunity to bring in a new management company or operate internally and seek to revamp the operational strategy of the Hotel.
- Offered at a Discount to Replacement Cost: The acquisition of the Hotel represents a fee simple opportunity for investors to acquire a well-constructed and recently renovated, midscale asset at pricing well-below replacement cost.
