Investment Highlights:
- Material Upside Through Renovation: The Hotel was last renovated in 2014/2015, presenting an investor with the opportunity to acquire a well-located, institutional hotel and drive additional upside through completion of the Property Improvement Plan. A comprehensive renovation will allow for substantial lift in the average daily rate the Hotel is able to achieve.
- Momentous In-Place Cash Flow and Revenue Growth: In 2022, the hotel hit record Room Revenue and NOI. In 2023, the Hotel is on pace to beat 2022’s record, at a RevPAR increase of 14.5% from pre-COVID times. Revamped food & beverage operations coupled with renovation will position the Hotel to capture even more growth shortly after acquisition.
- Fully Unencumbered by Management and Debt with Flexible Branding Options: The fully unencumbered nature of the Asset offers a blank-slate opportunity for potential investors. Marriott’s franchise agreement ends on July 6th, 2024. A buyer has the explicit right to terminate the agreement before the date with a manageable payment of liquidated damages.
- Lack of Quality Investment Targets: Despite transaction volume experiencing a meaningful uptick recently. Quality full-service hotel investment opportunities remain limited, allowing for an investor to acquire this premier brand full-service Hotel in a high barrier to entry market well below replacement cost.
- Minimal Future Supply: The Hotel will benefit from a slim supply pipeline over the next several years. According to CoStar, there is zero lodging supply under construction in the Northeast/Lower Bucks Submarket. The non-existent supply and new emergence of biotechnology within the surrounding area allows the asset to continue to capitalize on leisure and business travelers.
- Strong Sub-Market Fundamentals: The Hotel is in the STR-defined Northeast/Lower Bucks submarket. The submarket has experienced robust ADR growth with 2023 YTD May ADR already outpacing YTD 2022 by 4.7%.
- Ample Corporate & Leisure Demand Generators Nearby: The Hotel is located within a one-mile radius of the 10th largest mall in the state, spanning 1.3 million square feet. Oxford Valley Mall, serves as an anchor to a number of surrounding retails uses, collectively being the area’s retail epicenter. The Hotel is also surrounded by an emerging biosciences industry and corresponding medical demand (Jefferson Bucks Hospital, St. Mary Medical Center Grand View Health), industrial demand, and a multitude of corporations (Woods Services, Northtec LLC). Located in the heart of Bucks County, the Hotel also benefits from various leisure attractions, including Sesame Place (which attracts over 1 million visitors annually), Parx Casino & Racetrack, and local breweries, wineries, wedding venues, and golf courses. Moreover, the Property is just under 15 miles away from Northeast Philadelphia Airport and under 10 miles from New Jersey’s capital Trenton and its airport Trenton-Mercer Airport, which, along with a comprehensive rail system, allows for excellent regional access to the Northeast Corridor and beyond.
Tours are available by appointment only July 20th and July 27th. Please reach out to Ketan Patel (Ketan.Patel1@JLL.com) or Philip White (Philip.White@JLL.com) to schedule a tour.
The Offering
JLL’s Hotels & Hospitality Group, as sole and exclusive agent for the owner, has been retained to offer for sale the fee simple interest in the 186-room Sheraton Bucks County Langhorne (the “Hotel”, “Property”, or “Asset”). This premium branded Hotel benefits from its easy accessibility to I-296 and U.S. 1 and its strategic – location within Bucks County, a wealthy suburb of Philadelphia with a growing population and abundant leisure and corporate demand drivers, including: the Oxford Valley Mall, Sesame Place, Jefferson Bucks Hospital, and St. Mary Medical Center. Additionally, the Hotel remains the only premium branded, full-service hotel in the submarket, allowing for an owner to maximize its food and beverage program and drive greater overall revenues, while taking advantage of record, property-level performance in 2022.
