Candlewood Suites - Central US, Confidential

Executive Summary

This 89 unit Candlewood Suites has recently opened and features the new expanded lobby. The construction contractor is a well respected and experienced hotel builder. The Candlewood is located within the central US in a city of nearly 40,000 and is the only true extended stay hotel in the local market. The area economy boasts major corporate giants such as Wal Mart and Conoco Phillips. If you have reviewed the Candlewood Suites business model, you will know that the stabilized income stream will produce a Net Operating Income in excess of 50% of gross revenue. At a stabilized occupancy of 68% and an $81 ADR, gross annual revenue will approach $1.8M. The NOI from $1.8M could well exceed $900K. If you are looking for a new hotel without the development hassle, at the actual construction costs, ($70K per key), this Candlewood Suites deserves your close consideration.