Overview
HREC Investment Advisors (“HREC IA”) is pleased to offer, to qualified investors, the opportunity to acquire the fee-simple interest in the 108-room Four Points by Sheraton Birmingham Homewood (“Hotel” or “Property”), situated at 492 Wildwood Circle N, Homewood, AL 35209.
The Four Points by Sheraton Birmingham Homewood presents a compelling acquisition opportunity, offering significant upside potential for investors. The Hotel’s current RevPAR performance is below the competitive set, yet a completed Property Improvement Plan (PIP) and an optimized revenue management strategy could substantially enhance cash flow. By addressing these areas, the Hotel can capture a larger share of the market, boosting its profitability and positioning it as a leading limited-service property in the Homewood area.
The Hotel is strategically located at the heart of Birmingham’s dynamic economic environment. Situated within a bustling area of Jefferson County, the Hotel is strategically positioned to off er easy access to the city’s major corporate and industrial hubs. Just a short drive away, Wells Fargo’s key operations center, Buffalo Rock Company’s expansive new headquarters, and Kratos SRE’s advanced materials testing facility underscore the area’s prominence as a business epicenter. With the presence of notable firms like Evonik Corporation and T-Mobile nearby, the Four Points by Sheraton Birmingham Homewood provides convenient lodging for professionals and visitors involved with these influential enterprises.
Beyond its corporate advantages, the Hotel’s location offers guests a gateway to Birmingham’s rich cultural and recreational landscape. The vibrant culinary scene, renowned music venues, and historic landmarks such as the Birmingham Civil Rights Institute provide compelling reasons to explore the city. For outdoor enthusiasts, Red Mountain Park and the Robert Trent Jones Golf Trail at Oxmoor Valley present excellent opportunities for leisure and adventure. The Hotel is well-located to capture room nights from a diverse array of demand generators.
Investment Highlights
- Significant Upside Opportunity: Currently, the Hotel’s RevPAR lags the competitive set at less than 100% RevPAR penetration. With a completed property improvement plan (“PIP”), an improved revenue management strategy while containing expenses should significantly increase cash flow to the bottom line.
- Proximity to Diverse Demand Generators: The Hotel’s strategic location offers easy access to a diverse range of businesses, including corporate offices for Wells Fargo, Buffalo Rock, T-Mobile, Hibbett, and Evonik. Additionally, the Hotel is less than ten minutes from Samford University, one of the largest colleges in the Birmingham area, and Downtown Birmingham’s attractions are a short drive away along Interstate 65.
- Marriott Brand Affiliation: The Four Points was renovated in 2020, and current ownership has invested approximately $300K since 2022. Thus, a PIP for a new owner will be minimal. The Hotel’s Marriott brand affiliation significantly increases the ability to attract new business.
- Unencumbered by Management: An investor can re-fl ag, revamp the operations of the Hotel, implement strategic cost control initiatives, and employ more aggressive yield management strategies to improve the Hotel’s performance and profitability.
- Fee Simple Interest
