INVESTMENT HIGHLIGHTS
UPSIDE POST RENOVATION
The Hawthorn Suites Louisville East recorded a RevPAR of $68.59 through Year-End 2024, ranking 7 of 8 within its competitive set at 79.9% penetration. This underperformance highlights the considerable upside for new ownership upon completing a change-of-ownership PIP. An improved product offering is expected to significantly boost top-line performance beyond current metrics, positioning the Hotel for enhanced RevPAR growth.
UPBRAND OPPORTUNITY
Prospective Buyers have the opportunity to extend the current franchise agreement with Wyndham to continue to operate as a Hawthorn. Alternatively, new Ownership can explore potential upbranding options that will significantly increase performance to levels far exceeding in-place metrics.
SIGNIFICANT OPERATIONAL UPSIDE
The Hotel is currently institutionally managed and achieved a 15.8% NOI margin through the Year End 2024 period. On average, extended stay hotels operate above 35% NOI margins. Significant upside remains upon implementing a more localized management approach. Prospective buyers will have the opportunity to improve on efficiencies and lower costs compared to those of a larger management company with a revamped management strategy.
OFFERED BELOW REPLACEMENT COST IN HIGH GROWTH MARKET
The Hawthorn Suites Louisville East is being offered at a discount to replacement cost. Louisville’s population has increased by 55,000 over the last decade, with 2,300 new jobs added in 2023 alone and more than $1 billion in capital investments. Notably, GE Appliance Park recently completed a $450 million expansion, adding over 1,000 employees, and the airport is undergoing a $45 million upgrade to meet rising demand, having reached a record 2.58 million passengers in 2023. The offering presents an opportunity to buy into an exponentially growing market at an attractive basis.
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ABOUT HUNTER
Hunter Hotel Advisors is the leading investment advisory firm focused exclusively on the hotel industry. Their seasoned team of investment professionals and offices nationwide consistently provide clients with optimal results in hotel brokerage, financial advisory and capital markets services of any size or complexity. With over 45 years of experience in both full and select-service single assets as well as portfolio marketing, the firm’s capacity in valuation, economic analysis, and industry relationships has allowed HUNTER to consistently maximize value regardless of market conditions.
Hunter Hotel Advisors is the founder and producer of the well-known and respected Hunter Hotel Investment Conference. Since their first conference in 1989, they have had a consistent focus on producing an educational and networking format based on real estate and finance for hotel owners.
