Overview
The SpringHill Suites Oklahoma City Quail Springs presents a compelling investment opportunity for an upscale, Marriott branded Hotel in an evolving submarket, where corporate development and cultural growth catalyze tourism and leisure. This strategically positioned asset, located just north of the heart of Oklahoma City, benefits from high visibility along the Kilpatrick Turnpike and exposure to nearly 75,000 vehicles per day.
With scaling opportunities and support from Marriott to extend its flag for 10-12 years, operational improvements targeting a higher flowthrough percentage could place new management at a strategic advantage. The Hotel’s underperformance compared to its competitive set exhibits the potential to drastically increase occupancy and ADR.
The Property’s highly desirable location in an evolving market with significant transient demand, coupled with its flag and significant upside potential, makes the SpringHill Suites Oklahoma City Quail Springs an alluring investment opportunity.
Investment Highlights
Growing and Diversified Economy
Oklahoma City is a preeminent southeastern metropolitan, anchored by aviation and aerospace, and placed at the forefront of substantial economic development. The city’s attractive state financial incentives and low-cost operations encourage corporate relocation and promote ongoing growth in the region.
Excellent Visibility Near Major Highways
The Hotel is located directly off the Kilpatrick Turnpike and a short distance from Interstate 35, benefiting from substantial passenger and vehicle traffic that funnels into the urban core of Oklahoma City. The routes are primary gateways for travel across the state and part of currently underway renovations.
Marriott Brand Affiliation
The Spring Hill Suites OKC Quail Springs benefits from its Marriott affiliation. A premier hotel company renowned for its reliable standards and consistent operations across brands, Marriott enjoys an extensive Bonvoy reward loyalty program with over 177 million members.
Prime Conversion Candidate
The SpringHill Suites OKC Quail Springs benefits from a minimally restrictive franchise agreement with Marriott, which stipulates moderate liquidated damages of $100K – less than $1K/key – to sever the contract. Instead, investors may elect to transition the Hotel to another leading hotel brand.
Proximate to Leisure and Corporate Demand Generators
The Hotel’s ideal location short distances from an array of tourism and leisure attractions, in addition to a substantial corporate presence, allows guests to experience the expanding allure of Oklahoma City. Situated against idyllic scenery, the state’s southern charm and urban prowess stand to impress athletes, professionals, and adventure seekers, alike.
Offered Well Below Replacement Cost
The opportunity to acquire this asset well below replacement cost allows an investor to benefit substantially from a combination of location in a growing economy and upside opportunity. The national average cost of building a hotel has increased significantly in the past few years. Given the size and condition of this Hotel, as well as the increased cost of labor and supplies in today’s market, we can reasonably assume that the construction of this Property would be significantly more than the target selling price of this asset.
Fee Simple Interest
The Property will be offered as fee simple.
Offered Unencumbered by Management
The SpringHill Suites Oklahoma City is being offered unencumbered by a management agreement. An investor possesses the opportunity to bring in a new management company or to act as an owner/operator and seek to revamp the operational strategy of the Hotel, implement strategic cost control initiatives, and employ more aggressive yield management strategies.
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