PROPERTY OVERVIEW

Hunter Hotel Advisors has been exclusively retained relating to the solicitation of offers to acquire the 88-room SpringHill Suites Tallahassee Central located at 1300 Executive Center Dr. Tallahassee, FL, 32301. The hotel is strategically located off US Highway 27 allowing for easy access to downtown Tallahassee, the Florida State Capitol, Florida State University, and Florida A&M University, enabling the property to benefit from a steady flow of visitors relating to government, university-related leisure and corporate events.

This offering provides a valuable opportunity to acquire an institutional-quality, all-suite hotel in a prime location within a vibrant university and capital city market. With limited new competition in the area, the property presents significant potential for operational improvements through updated management strategies and completion of a change-of-ownership Property Improvement Plan (PIP), all at a substantial discount to replacement cost.

EXCELLENT LOCATION IN THE CAPITAL OF FLORIDA: The hotel is located within 5 miles of: The Florida State Capitol, Florida State University (FSU – enrollment: 43,701 students), Florida A&M University (FAMU – enrollment: 10,000 students), The Donald L. Tucker Civic Center (300,000 SF; 12,500 capacity), and Doak Campbell Stadium (home of FSU’s football team with a capacity of 80,000 people, currently undergoing a $373MM renovation).

INSTITUTIONAL MARRIOTT BRANDED ASSET IN A THRIVING AND UNDERSUPPLIED MARKET: As of the period ending TTM September 2024, RevPAR in the Tallahassee sub-market was increasing at an annual rate of 4.4%, significantly outperforming STR forecasted YE 2024 year-over-year RevPAR increase of 2% nationwide. Despite Tallahassee’s impressive RevPAR growth, as of November 2024, new supply for Upscale and Upper Midscale hotels remains muted, creating favorable market conditions for existing premium branded assets.

HIGH PERFORMING ASSET WITH SIGNIFICANT OPERATIONAL UPSIDE: The hotel is achieving a RevPAR of $101.01 for the TTM period as of September 2024, reflecting a strong performance in the market. Currently managed by an institution third-party operator, the hotel achieves a 22.2% margin, indicating significant operational upside upon implementation of a revamped management approach as well as completion of a change-of-ownership PIP.  With improved efficiencies and lowered costs under new management, new ownership can expect to restore NOI margins to the 32%+ level achieved pre-COVID.

The fee simple Property is offered unencumbered by management and located in a non-union labor market.