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Newport City Inn & Suites and Derby Four Seasons Inn & Suites
CBRE Hotels is offering for sale on an exclusive basis the Newport City Inn & Suites and Derby Four Seasons Inn & Suites Portfolio in Newport and Derby, Vermont. The Portfolio offers an investor a unique opportunity to invest in the only two hotels in Newport and Derby, Vermont, which are strategically positioned only two miles away from each other within Vermont’s Northeast Kingdom. The Hotels are strong and steady performers which likely offer a value-add opportunity through targeted renovations, though both hotels are in good condition.
The Derby Four Seasons Inn & Suites is well-located directly off Exit 28 of I-91 with visibility along Route 105, the main thoroughfare of Newport and Derby, Vermont. Two miles down the road, Newport City Inn & Suites is situated along Route 105 in the village of Newport. The Portfolio, five miles south of the United States – Canadian border attracts a steady and enduring demand base of leisure travelers during summer, fall and the winter sports season. The hotels are proximate to year-round leisure attractions, including the nearby ski mountains Jay Peak Resort (20 miles), Burke Mountain (37 miles), Lake Memphremagog, Vermont Association of Snow Traveler’s trail network, Newport Country Club, Orleans Country Club, Prouty Beach, Lindsay Beach, Newport’s shops and restaurants, Crystal Lake State Park, Haskell Library & Opera House, among others.
Investment Highlights
BOOMING LEISURE DEMAND MARKET
Newport and surrounding areas offer something for everyone – multiple ski resorts, Vermont’s snowmobiling trail network, museums, theaters, restaurants, scenic and historic attractions, camping, stunning hiking and biking trails along with beautiful lakes. As a result of the countless activities and adventure opportunities, the region benefits not only from traditional summer vacation travel and its world-famous fall foliage, but also the winter season. Vermont welcomed nearly 4 million skiers during the 2021-2022 ski season.
PORTFOLIO OPERATING SYNERGY
Due to the two independent hotels’ proximity to each other, operations can share costs, streamlining efficiencies and allowing greater cash flow-through without sacrificing operational capacity. This is especially impactful in a rising labor cost environment.
NO COMPETING PRODUCT OFFERINGS IN NEWPORT AND DERBY
Newport City Inn & Suites and Derby Four Seasons Inn & Suites benefit from being the only two hotels in Newport and Derby, Vermont. To our knowledge, there are no plans for any near-term future lodging supply in Newport and Derby, Vermont or surrounding area. The nearest franchise hotel in the United States is 44 miles away in Saint Johnsbury, VT (Comfort Inn & Suites).
SELECT-SERVICE OPERATION ALLOWS FOR STRONG PROFITABILITY
As independent limited-service properties, the portfolio allows management to focus resources on driving rooms revenue while not requiring extensive staffing in a challenging labor market.
STRONG IN-PLACE ROOMS REVENUE WITH POTENTIAL UPSIDE
The Newport City Inn & Suites and Derby Four Seasons Inn & Suites are in good physical condition but may further benefit from a new owner implementing modest, targeted renovations to elevate the guest room product, public space and amenity offerings. Calculated capital improvements in conjunction with efficient operations and effective asset management will allow the next owner to build on prevailing strong performance and drive supplementary returns as the post-Covid era lodging recovery maintains its momentum.
VALUE-ADD RENOVATION OPPORTUNITIES TO DRIVE PROFITABILITY
The Hotels are strong performers and likely offer a value-add opportunity through a targeted renovation. The current positioning of the Portfolio offers superior flexibility: fee-simple, non-union and unencumbered by management and debt.
DESTINATION VERMONT: INFLUX OF NEWCOMERS
Amplified by the global pandemic, Vermont has welcomed a growing migration of new residents to the Green Mountain State, which has tremendously benefited the hotels as reflected in the 2021 and 2022 revenues. Ranked #1 for being the Top Moving Destination of 2022 according to the National Movers Study by United Van Lines (nation’s largest household goods mover), Vermont continues to attract new residents, primarily for features including outdoor adventure opportunities, its quiet environment, and its welcoming community. The hotels are ideally positioned to continue benefitting from the influx of newcomers into the state.
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