The Residence Inn Canton offers a promising value-add opportunity while being located near significant demand generators such as a major natural resource, three corporate headquarters, two hospitals, six universities and colleges, many leisure attractions, and a regional airport.
The Property's top line offers room for growth, with it being ranked 5 out of 6 in RevPAR in relation to its competitive set for February 2024. The affiliation with the 160 million Marriott Rewards System members provides additional benefits in expanding demand channels for bookings. An investor can also capitalize on opportunities to revamp operations and implement cost control initiatives.
Canton’s diverse economy offers three corporate headquarters, The Timken Company, a major steel manufacturer; Diebold Nixdorf, the world's largest producer of ATMs; and Belden Brick Company, the sixth largest brick and masonry manufacturer. Moreover, the two hospitals in the area, Aultman Hospital and Cleveland Clinic Mercy Hospital, have a combined total of ~1,300 beds, creating a healthcare hub in Canton to support the surrounding areas. Aultman Hospital benefits the local economy in many ways, the Aultman Health Foundation has invested $104M into the local community and they are the second largest employer in Canton, employing over 5,000 people in high-quality jobs to benefit the local economy.
Unique, Long-Term, Marriott Franchise Agreement: The Hotel benefits from a 14-year franchise license expiring in 2037 which is very uncommon for Marriott products of this age. The Hotel will receive an additional 5-year term once the PIP is completed. After the future franchise agreement expires, the Hotel has great potential to be converted to multi-family.
Upside from Replacing Existing Management: An investor can seek to revamp the operations of the Hotel, implement strategic cost control initiatives, and employ more aggressive yield management strategies.
Value-Add Offering: The Hotel will require a full PIP upon sale, improving the standing of this property in relation to the competitive set.
Terrific Location to Major Demand Generators: The Hotel is located less than seven miles from three major corporate Headquarters, 14+ sports league facilities, two hospitals, two colleges, three major tourist attractions, and Akron-Canton Regional Airport.
Significant RevPAR Opportunity: According to the February 2024 TTM, the Hotel’s Occupancy penetrated at 98% while its ADR penetrated at 92.2%against its competitive set, resulting in a 90.3% RevPAR penetration, exhibiting significant opportunity for RevPAR growth.
Offered Well Below Replacement Cost