Sleep Inn Kernersville Listing Details & Market Data

Property listed by Bryan Johnson License number: NC 271733

Property tours are by APPOINTMENT ONLY. Any attempts to visit/contact property without agent approval will result in a ban from all future listings! Prospective buyers can view financial history including revenue, NOI, ADR, and Occupancy by clicking "Download OM" and signing a confidentiality agreement. This property is currently listed as unpriced. NO PRICING GUIDANCE IS AVAILABLE. Ownership will review and respond to all offers and ultimately select the offer with the best price and terms.

Colliers, as an exclusive representative of the seller, is pleased to present to qualified investors for sale the Sleep Inn Kernersville located at 1406 Heartland Drive, Kernersville, NC 27284. The subject property is a 104-room, interior-corridor, limited-service asset located on 2.2 acres visible to Interstate 40 (64,000 vehicles per day) and NC Highway 66 (30,000 vehicles per day). The property, built in 1995, is offered with fee-simple interest and presents investors with an opportunity to purchase a cash flowing, renovated, midscale asset below replacement costs in a high-barrier-to-entry market.

Current ownership purchased the asset in 2017 and completed a modest renovation in conjunction with a change-of-ownership Property Improvement Plan (PIP) throughout 2018-2022 to include all areas of the hotel. It is expected that a prospective purchaser should be granted a long-term license with the Sleep Inn brand from Choice Hotels upon the completion of a minimal change-in-ownership PIP, though prospective purchasers should confirm with a qualified franchise sales representative. Upon completion of current ownership’s renovation, the hotel saw a dramatic increase in RevPAR. For reference, the hotel achieved (rounded) $52 RevPAR in 2022, a 30.5% year-over-year increase compared to 2021. Furthermore, in the trailing-12 months behind September 2023, the hotel achieved $53 RevPAR, a 1% increase compared to 2022 full-year. Additional upside remains for a prospective purchaser as evidenced by the STR trends report. In 2022, the competitive set achieved RevPAR of $60, with Occupancy of 63% and ADR of $96. This is compared to the Sleep Inn’s 2022 RevPAR of $52, with Occupancy of 58% and ADR of $90. Translated to indexes, the Sleep Inn achieved only 92% of market penetration for Occupancy, 94% market penetration for ADR, and 87% market penetration for RevPAR compared to the competitive set in 2022. Subsequently, in the trailing-12 months behind September 2023, the competitive set achieved RevPAR of $61, with Occupancy of 61% and ADR of $100. This is compared to the Sleep Inn’s 2023 T12 RevPAR of $53, with Occupancy of 59% and ADR of $89. Translated to indexes, the Sleep Inn achieved only 96% market penetration for Occupancy, 89% market penetration for ADR, and 86% market penetration for RevPAR. This is versus a competitive set of Super 8 High Point/Greensboro, Baymont by Wyndham Winston-Salem, Holiday Inn Express Kernersville, Sleep Inn Greensboro Airport, and Hampton Inn Kernersville. Given the competitive set is comprised of a mix of economy and upper midscale properties, it is likely that a prospective purchaser can utilize a modest change in-ownership PIP to bring RevPAR up to the competitive set RevPAR of $61 to forecast stabilized room revenue in excess of $2,300,000. The hotel’s adjusted EBITDA NOI has exceeded $830,000 in 2022 and in the trailing-12 months behind September 2023, affording strong cash-flow to a prospective purchaser based on in-place income.

The hotel’s central location in Kernersville benefits from a variety of core demand generators contributing to a steady and stable revenue base. Kernersville is in close proximity to the North Carolina National Guard’s center in Winston Salem