Property Details
Below Market Rents  Below Market Occupancy  NOI Growth 
Asset Profile
Core Plus

Fairfield Inn & Suites - Moosic, PA

Moosic, PA

Hospitality Property
Synergy Hospitality, Inc. Wayne, PA
Synergy Hospitality, Inc.
  • IRR 18-20%
  • Equity Multiple 2.6x
  • Hold Period 7-10Y
  • Minimum Investment $50K
  • Year 1 Cash on Cash 6-8%
  • Stabilized Cash on Cash 12% in Y2
  • First Distribution Jul 2020
  • Distribution Frequency Other
  • Co-Investment 6%
  • Preferred Return N/A
  • Investor Profit Share 75%
  • Asset Profile Core Plus
  • Loan-to-Value 77.8%
  • Current Occupancy 0%

About this Property

Address 16 Radcliffe Drive
Square Footage 45,000 sq. ft.
# of Rooms 108
Year Built 2019
Market Occupancy 70%
Average Market Rents $110
Purchase Price $13,500,000
Price per Room $125,000

Why you are buying the Property?

Off-market acquisition of a brand new hotel with exceptional brand, high quality product, and proven location with an opportunity to cross utilize sales staff and benefit from knowledge and efficiency of having existing successful hotel operations already in the market. The project will also benefit from a 10 year tax abatement on improvements, significantly benefiting cash flow.

 

What is your investment strategy/business plan for the Property?

Synergy Hospitality Management will be engaged as the hotel's Management Company. Synergy is an approved Marriott Manager and has a proven track record of successful operations with similar hotels in the region and will bring their considerable expertise to the project.

 

What are the first 3 steps you will take to maximize cashflow and property value?

  1. Ensure the hotel is appropriately staffed to deliver the highest level of guest experiences.
  2. Work closely with the franchisor to maximize brand reservation contribution through all brand channels.
  3. Perform a local sales blitz to all local business, convention & visitors bureau, and chamber of commerce to promote the hotel via word of mouth and site tours.

 

What are the 3 most important aspects of this investment opportunity for the investors?

  1. Excellent brand affiliation (Marriott).
  2. Brand new, high quality construction.
  3. Off-market acquisition.

 

Are there any unique aspects to the property, your investment strategy or this Offering that will help create value for investors?

The property benefits from a 10 year real estate tax abatement on improvements.

 

How are risks being mitigated during the hold period?

Given that the project is brand new, there will be minimal need for renovations over the hold period. Once permanent debt is placed, the fixed costs will be set with minimal variability. Strong brand affiliation and reservation network ensures primary market share. Experienced management will ensure cost control and consistently high service levels.

About this Property

Address 16 Radcliffe Drive
Square Footage 45,000 sq. ft.
# of Rooms 108
Year Built 2019
Market Occupancy 70%
Average Market Rents $110
Purchase Price $13,500,000
Price per Room $125,000

Why you are buying the Property?

Off-market acquisition of a brand new hotel with exceptional brand, high quality product, and proven location with an opportunity to cross utilize sales staff and benefit from knowledge and efficiency of having existing successful hotel operations already in the market. The project will also benefit from a 10 year tax abatement on improvements, significantly benefiting cash flow.

 

What is your investment strategy/business plan for the Property?

Synergy Hospitality Management will be engaged as the hotel's Management Company. Synergy is an approved Marriott Manager and has a proven track record of successful operations with similar hotels in the region and will bring their considerable expertise to the project.

 

What are the first 3 steps you will take to maximize cashflow and property value?

  1. Ensure the hotel is appropriately staffed to deliver the highest level of guest experiences.
  2. Work closely with the franchisor to maximize brand reservation contribution through all brand channels.
  3. Perform a local sales blitz to all local business, convention & visitors bureau, and chamber of commerce to promote the hotel via word of mouth and site tours.

 

What are the 3 most important aspects of this investment opportunity for the investors?

  1. Excellent brand affiliation (Marriott).
  2. Brand new, high quality construction.
  3. Off-market acquisition.

 

Are there any unique aspects to the property, your investment strategy or this Offering that will help create value for investors?

The property benefits from a 10 year real estate tax abatement on improvements.

 

How are risks being mitigated during the hold period?

Given that the project is brand new, there will be minimal need for renovations over the hold period. Once permanent debt is placed, the fixed costs will be set with minimal variability. Strong brand affiliation and reservation network ensures primary market share. Experienced management will ensure cost control and consistently high service levels.

Offered By

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Assets Under
Management

Currently
$150MM less than 10 assets
Exited
$55MM less than 10 assets
Portfolio LTV
75%  
Historical
Realized Returns

Total IRR
19%  
Equity Multiple
2.5x  
Annual Cash
10%  
Years Of
Experience

As Principals
30+ years  
In Business
23 years  
Size
15 Staff * Dedicated investor relations
* All information is reported by Synergy Hospitality, Inc. as of 1/15/2020.
Assets Under
Management

Currently
$150MM less than 10 assets
Exited
$55MM less than 10 assets
Portfolio LTV
75%  
Historical
Returns

Total IRR
19%  
Equity Multiple
2.5x  
Annual Cash
10%  
Years Of
Experience

As Principals
30+ years  
In Business
23 years  
Size
15 Staff * Dedicated investor relations
* All information is reported by Synergy Hospitality, Inc. as of 1/15/2020.

Financials

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Offering Financial

Sponsor Diligence Report

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Diligence Preview

Location Details

Moosic, PA

The hotel is located in the Shoppes at Montage, just off I-81 at the Davis Street (exit #182) in Moosic, Pennsylvania. This location within a shopping area provides a variety of dining options within a short walk, a significant benefit for a limited service hotel. Further, the location is convenient to multiple corporate and industrial parks in the immediate area and leisure destinations such as Montage Mountain Ski Area and water park, The Pavillion at Montage Mountain entertainment venue, PNC Field (home of the Scranton/Wilkes Barre Rail Riders – Triple A affiliate of the NY Yankees baseball team), and number of first class golf courses. The hotel is also within 5 miles of the Wilkes Barre Scranton International Airport.

Documents

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Offering Agreement Documents

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