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Greensboro-High Point Marriott Airport Hotel
CBRE Hotels, as sole and exclusive agent for the owner, has been retained to offer for sale the leasehold interest in the 298-room Greensboro-High Point Marriott. Located on 15+ acres within the grounds of Piedmont Triad International Airport (PTI), a 4,000-acre campus housing more than 50 companies and more than 4,000 employees, the Hotel is adjacent to FedEx's Mid-Atlantic distribution hub, Honda Aircraft Company World Headquarters, HAECO Americas' North American headquarters, and Boom Supersonic’s new super factory.
The Property benefits from its proximity to more than four million residents within a 90-minute drive, as well as major demand drivers such as the University of North Carolina Greensboro, High Point University, NC A&T University, the bi-annual High Point Furniture Market, and the Greensboro Coliseum Complex—an annual host of the NCAA Basketball March Madness Tournament and a frequent host of the ACC Basketball Tournament. The Hotel generates strong in-place cash flows and is well-positioned for significant growth in revenue and market share with a refreshed and repositioned service offering.
Investment Highlights
Strategic Location with Direct Access to PTI Airport
The Marriott is the only hotel in the market with direct access to the Piedmont Triad International Airport (PTI) complex. PTI serves more than 1.5 million passengers annually, processes more than 300 million tons of cargo each year and serves as the Mid-Atlantic hub for FedEx as well as Boom Supersonic's new super factory that will soon produce their Overture commercial aircraft. PTI experienced a 25 percent increase in 2022 passengers over 2021. Year to date through July 2023, passenger volume is up 23 percent over the same period last year.
Strong In-Place Cash Flow with Significant Revenue Upside
The Property currently generates over $9.5 million in stabilized annual room revenue with strong projected growth stemming from a renovated guest offering and growing demand. Despite its unmatched location, the Hotel currently ranks 3 of 7 in the competitive set within all three major performance indicators (Occ, ADR, RevPAR), indicating significant upside remains to increase market share.
Assumable Financing and Long-term Ground Lease with PTI
The deal offers attractive in-place financing at a significant discount to current rates. The leasehold expires in 2064; if the hotel is sold prior to year end 2024, an automatic 50-year remaining term is granted, effectively extending the term to 2074 with Piedmont Triad International Airport Authority.
Institutional-Quality Asset Unencumbered by Management
The Property is located on 15+ acres of beautifully landscaped grounds immediately adjacent to the PTI terminal. The Hotel underwent a comprehensive $12 million renovation in 2018 and remains in excellent condition. The Hotel features an abundance of guest amenities, including 17 meeting and event spaces, a full-service restaurant and grab-and-go counter, an indoor-outdoor pool, jogging trails, and a complimentary airport shuttle. The property will be unencumbered by management upon sale.
Greater Greensboro Demand Drivers
The Hotel is proximate to several major demand drivers within the Greensboro area, including the corporate headquarters for Fortune 500 companies like Lenovo, Synnex Corporation, VF Corporation, the regional headquarters for Wells Fargo, as well as major tourist attractions like the Greensboro Coliseum complex, the bi-annual High Point Furniture Market, and the International Civil Rights Center & Museum. The Hotel is less than 20 minutes by car to the Greensboro Coliseum Complex, an eight-venue complex and one of the most actively booked entertainment facilities in the Southeast, hosting over 1,100 events annually.
Coveted Sunbelt Market with Tremendous Growth
Greensboro-High Point is experiencing significant population growth due to its affordable cost of living (10 percent below the national average), quality of life (desirable amenities and outdoor recreation), strong and growing jobs market, and its accessible location in the heart of North Carolina. Greensboro and the greater Triad metropolitan area, comprised of Greensboro, High Point, and Winston Salem, benefit from the exceptional availability of workforce talent from nearby Universities and Colleges like UNC-Greensboro, NC A&T, Elon University, UNC-Charlotte, Duke, NC State, and Wake Forest. Greensboro-High Point ranked in the top 10 for U.S. job postings growth in 2022 (ranked 8th) and experienced a 5.9 percent increase in housing prices in 2023, indicating rapid growth in residential demand within the market.
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