COURTYARD PROVIDENCE DOWNTOWN
Providence, Rhode Island
Deal Type: Acquisition
Risk Profiles: Core Plus, Value-Add
Property Type: Hotel & Hospitality
PROPERTY OVERVIEW
Excellent Location
The Courtyard Providence Downtown is a 219-key hotel situated in the heart of Downtown Providence within Providence’s Capital Center. Capital Center is an 80-acre development completed in 1978 that is home to some of the city’s major projects including the Providence Place Mall, the Rhode Island Convention Center, the historic Union Station Complex, and the headquarters of Citizens Financial Group, generating more than $1 billion in economic activity in the city. Surrounded by a bustling cityscape, the hotel offers easy access to a plethora of demand generators, as well as an abundance of dining, shopping, and entertainment options. Nearby attractions include Brown University, Johnson and Wales University, College Hill, PPAC (Providence Performing Arts Center), and the Amica Mutual Pavilion. Outside of downtown Providence, additional leisure demand generators include the Newport Mansions, and Rhode Island’s more than 400 miles of beautiful beaches.
Institutional Marriott Branded Asset
Marriott’s Courtyard brand is one of the strongest brands in the Marriott family. Premium branded assets have distinct competitive advantages compared to the rest of the market due to their large rewards and reservation systems as well as name recognition. All Marriott properties are backed by the Marriott Bonvoy reward program which boasts over 160 million members across 33 brands and more than 7,000 hotels worldwide.
Strong Metrics & Cash Flow with Additional Upside
The Courtyard Providence downtown has demonstrated exceptional performance, boasting an impressive $115.41 RevPAR for the Trailing Twelve Month period ending July 2023 and has averaged a $151.50 ADR since 2019. Despite being due for a renovation, strong top line metrics have allowed the hotel to produce strong cash flows. 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 High Growth Market
The Courtyard Providence Downtown is being offered at a discount to replacement cost with construction costs at an all-time high. The offering presents an opportunity to buy into an exponentially growing market at an attractive basis.
32 Exchange Ter, Providence, RI 02903