The Hazelwood Baymont Inn & Suites was built in 2013 and opened in 2014 as a Holiday Inn Express & Suites. In late 2017 ownership dropped the Holiday Inn brand. After a about six months of operating as an independent the property was converted to a Baymont Inn & Suites in May of 2018. The flag change caused a significant drop in all performance metrics.
The property has 69 guest rooms and suites with Wi-Fi, a flat-screen HDTV with cable, mini-refrigerator, microwave, and coffee and tea maker. Common area amenities include a spacious lobby and breakfast area with a sundry shop and business center, an indoor pool, meeting room, fitness center and guest laundry.
The property is in excellent condition and well situated on a 1.4-acre lot at an active exit at the intersection of I-270 and U.S. Highway 67. Traffic volume per day, as reported by MODOT, exceeds 140,000 per day on I-270 and 50,000 on U.S. Hwy 67. The location is less than 5 miles from Lambert International Airport, 3 miles from Boeing Company (the City’s largest employer with over 5,600 employees) and less than 20 miles from Downtown St. Louis which boasts numerous attractions such as the Gateway Arch, Busch Stadium (home to the St. Louis Cardinals baseball team), the Scottrade Center (home to St. Louis Blues hockey team), the St. Louis Zoo, Science Center, Art Museum, and Missouri History Museum.
Hazelwood is included in the St. Louis metropolitan statistical area (MSA). As of 2017 the MSA was the 21st-largest in the country with a population of 2.8m. As of 2018, Greater St. Louis is home to the headquarters of ten of Missouri’s eleven Fortune 500 companies, six Fortune 1,000 companies, and two of the top 30 Largest Private Companies in America, as ranked by Forbes.
IHG has expressed interest in a new 15-year license as a Holiday Inn Express & Suites and a PIP is available. While the PIP is substantial, the all-in cost, (including the price of the PIP) should be less than $70k per key, much lower than the cost of a new build. The availability of operating reports from the time the property was an Express remove some of the guess work in determining whether or not there is a market for the brand. The property is also much newer than any of the other Hazelwood hotels. The next most recently built Hazelwood property is over 15 years older than this property.
With the properties condition, location and previous track record with the IHG flag this offering represents an excellent opportunity to reposition this 5-year-old property as a Holiday Inn Express & Suites for a fraction of the cost, per key, of a new build.