Hodges Ward Elliott is pleased to present the opportunity to acquire the National Courtyard Portfolio (the ”Portfolio”), six Courtyard by Marriott hotels (“Property(ies)” or “Hotel(s)”) located in five states and totaling 885 keys. Currently, the Hotels are brand managed by Marriott International, but are being offered unencumbered by management with the option of entering into a 20-year franchise license agreement. Extensive renovations, including the Courtyard exterior reimaging program, were recently completed at each Property. The Hotels can be purchased as a single portfolio or on an individual basis.
INVESTMENT HIGHLIGHTS
Conversion to Franchise Opportunity
Opportunity exists to convert from brand to third party management under 20-year franchise license agreements providing a new owner maximum operational flexibility and the ability to bring in a new operator to unlock top-line growth and bottom-line efficiencies.
Freshly Renovated Assets
All of the Hotels recently completed extensive renovations between 2022-2024, including both the exterior and interior of each Property. As a result, a new owner can expect minimal PIP requirements and avoid near-term disruption to operations.
Extremely Limited New Supply
There is virtually no new supply, with only one hotel (122 keys) currently under construction, in the Hotels’ submarkets. Rapidly increasing construction costs along with very strict lending parameters for new-build projects, combined with each submarket’s very high barriers to entry will continue to benefit the Properties for the foreseeable future.
Geographic Diversity
The Portfolio is spread across five states in thriving submarkets that benefit from a wide variety of corporate, leisure, and group demand. Half of the unit count is concentrated in the Sun Belt, while the other half is located in strong Midwest submarkets. The Portfolio benefits from a variety of dynamic demand generators (e.g., corporate, technology, education, manufacturing, medical, airports, leisure, etc.) providing stable and non-cyclical demand year-round, therefore mitigating investment risk for a new owner.
Maximum Investment Optionality
The offering provides acquisition flexibility as either a collective investment (entire Portfolio or sub-Portfolio) or on an individual basis, catering to all investment preferences.
Best-In-Class Brand Affiliation
The Marriott brand family dominates the U.S. lodging landscape, and Courtyard is one of the most well-known brands, often achieving outsized market share and investment returns for their franchisees. Across the United States and Canada, there are over 1,066 Courtyard properties comprising over 147,000 rooms, with over 1,300 Courtyard properties across the globe.
Clean Investment Offering
The Portfolio is offered fee simple and unencumbered of both management and debt. In addition, each Property is operated with non-union labor. These advantageous dynamics afford a purchaser maximum optionality and flexibility in the capitalization and future operations.
Readily Financeable Portfolio
The combination of the premium Marriott branding, desirable locations, quality construction, and recent renovations makes the Portfolio attractive to lenders, allowing the purchaser to achieve favorable loan pricing and terms that will drive strong leveraged returns.
