INVESTMENT OVERVIEW
The Residence Inn Detroit Novi is a newly renovated hotel positioned in the epicenter of a wide range of demand generators which contribute considerable demand to the hotel. The three-story, 107-key is situated within walking distance to shopping, restaurants and entertainment at Fountain Walk, Twelve Oaks Mall, and Twelve Oaks Commons. This lends itself particularly well to the hotel’s strong extended-stay guest mix which traditionally book stays ranging from 6 months to upward of one year for project related business at one of Novi’s many automotive companies including Nissan, Toyota, Hyundai, and Lear. With a comprehensive $3.5 million (or $32,710 per key) capital plan completed in 2023, new ownership will have the ability to continue to drive top-line revenue with the most recently renovated hotel product in the market, without disruption.
As a top performing asset in the market, the hotel has performed exceptionally well in recent years and has increased market share in each of the previous three years, despite major renovations taking place. As of the trailing twelve-month (“TTM”) period ended November 2024, the Residence Inn achieved a RevPAR of $116.19, yielding a 147.5% RevPAR index, ranked 2 of 9 amongst its competitive set.
Top Performing Extended Stay Hotel
The Residence Inn Detroit Novi is one of the top performing hotels in the Novi Market. Boasting a newly renovated product, considerable strength of brand, extended-stay orientation, and its ideal location withing proximity to demand generators, the Hotel typically ranks within the top 1 or 2 with regard to RevPAR index and has not dropped below a 136.5% index within the past five years.
Accelerating Performance Figures
Following the completion of renovations in early 2023, performance at the Residence Inn has continued to increase. Throughout the past 36 months, the Hotel has achieved a healthy RevPAR CAGR of 5.2% while NOI has also grown precipitously from $1.35M in 2022 to $1.62M as the of the TTM period ended November 2024. This track record of stability and consistent growth offers the new owner an opportunity to capitalize on reliable and consistent cash flows moving forward.
Excellent Location
The Residence Inn is arguably situated in the best location in the immediate Novi market. With immediate access off Interstate 96 for easy travel in and out of Detroit and surrounding points to the east and west, the property is within adjacent to Twelve Mile Crossing at Fountain Walk, and less than one mile from Twelve Oaks Mall. Alternatively, corporate and group demand generators surround the Hotel including as the Suburban Collection Showplace, as well as offices and headquarters including Stoneridge, Maxion Wheels, Purem Eberspacher’s, Asahi Kasei, Cooper Standard, Comerica Bank, Miracle Software, and many more.
Operational Upside Available
The Residence Inn Detroit Novi is currently institutionally owned and managed. This presents a opportunity for new ownership to reduce expenses and drive higher margins with a new management strategy or by implementing operational efficiencies amongst surrounding, clustered hotels.
LISTING CONTACT
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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.
