PROPERTY OVERVIEW

 

EXCELLENT LOCATION

The Hampton Inn Van Buren is ideally located off I-40 proximate to several corporate and leisure demand generators. Located less than 5 miles from the Hotel is the headquarters of USA Truck, a long-haul trucking and logistics provider that was recently acquired and taken private in a $435 million transaction. Additionally driving corporate demand to the area are the food processing plants of Simmons Food which can produce more than 110 million pounds of fully cooked chicken products annually and are currently undergoing a $100 million expansion that will nearly double production capacity. Capturing leisure demand is Downtown Van Buren, which features a number of local eateries and attractions such as the beautifully restored King Opera House and the nearby 1838 restored Drennon-Scott House Museum. Van Buren is located just across the Arkansas River from Fort Smith, the third-largest city in Arkansas which is home to corporate demand generators such as OK Foods, Tyson, Planters, and QualServ. The city also features leisure demand generators such as the Fort Smith Museum of History, the newly built United States Marshals Museum, and the Fort Smith National Historic Site. Connecting travelers to the area is the Fort Smith Regional Airport which served approximately 120,000 passengers in 2023. The airport is currently undergoing infrastructure upgrades that will prepare it for when the adjacent Ebbing Air National Guard Base becomes a long-term foreign military pilot training center. The training center is estimated to require approximately $500 million in investment and will result in a nearly $1 billion economic impact on the area when upgrades are complete in 2028.

 

CASH FLOWING ASSET WITH ADDITIONAL UPSIDE POST RENOVATION

As of the Year End 2023 financial period, the Hotel achieved a RevPAR of $100.38, ranking 2 of 6 in comparison to its competitive set, and bringing in a total revenue of more than $2.4 million. The Hotel is cash flowing well with an NOI margin of 28%. Significant upside remains upon completion of a change- of-ownership PIP. The improved product offering combined with continued market growth expectations will result in RevPAR and NOI levels well exceeding in-place metrics.

 

OFFERED BELOW REPLACEMENT COST IN AN ESTABLISHED MARKET

The Hampton Inn Van Buren is being offered at a discount to replacement cost with construction costs at an all-time high. Van Buren and nearby Fort Smith feature established corporate demand generators in the food processing space including Simmons Foods, OK Foods, and Tyson. Additionally, Fort Smith was chosen to be a long-term foreign pilot training center. The training center is expected to bring 500 military members to the city over the next two years and a $500 million investment in construction projects through 2028. The offering presents an opportunity to buy into an established market with a high level of economic growth opportunities.

1916 N 6th St, Van Buren, AR 72956

BESbswy