Avid Hotel Dallas – McKinney in McKinney, TX Listed for sale

HVS, as the sole and exclusive property advisory firm, presents the opportunity to acquire the 95 Key Hotel Dallas-McKinney, an under construction, limited service hotel asset in the historically strong city of McKinney, located 30 miles north of In downtown Dallas.

The hotel is expected to open in December 2024 and will be handed over to new ownership on hand or upon issuance of a Certificate of Occupancy (CO). An investor will have the opportunity to purchase a newly built hotel, providing a blank slate to implement their own sales and revenue management strategies.

Asset Newly built, high quality, limited service hotel

• With a planned opening date of December 2024, the property will be in excellent physical condition, allowing an investor to purchase an IHG-branded, turnkey asset without the worry of a property improvement plan for a change of ownership (PIP).

• The average age of the selected competing group is over eleven years old, with the latest hotel having opened in 2022.

• As the newest accommodation in the competitive submarket, the property will be superior to what is currently available, and the hotel will be well suited to achieve its competitive market positioning and capture high-value transient and commercial demand. .

• The Fire Hotels brand offers an efficient business model and streamlined operating process, ultimately leading to a better NOI flow than similar limited-service family hotels of other brands.

Dallas submarket's strong fundamentals and competitive group's growing performance

• According to STR's Trend Report, the competitive group, consisting of seven mid- to mid-range limited-service hotel assets, achieved occupancy and average daily rate (ADR) levels of 73.7% and 108.44 dollars, respectively, resulting in an average RevPAR index of $80.22 for the trailing twelve month period (TTM) ending June 2024.

• For the year-to-date (YTD) period ending June 2024, the competitive group achieved RevPAR growth of 4.3%, driven primarily by ADR growth.

• According to the eight-year historical trend and YTD June 2024 data, demand has grown at a notable pace, with an average of 161,300 room nights (rounded) sold in the YTD period, equating to a compound annual growth rate (CAGR) of 9.2%. since 2017.

• Based on HVS's pro-forma projections, stabilized hotel room revenue is projected to exceed $3,000,000, with an NOI stream in excess of $1,000,000 (rounded), resulting in a RevPAR level in excess of $90.

Prime location along US Highway 75 between strong generators of corporate and leisure demand

• The property benefits from excellent visibility and accessibility given its location off US 75.

• The Dallas/Fort Worth Metroplex is home to many Fortune 500 company headquarters, including ExxonMobil, JC Penney and American Airlines, among others. The metroplex is considered an “inland port” because of its favorable transportation infrastructure, which includes a massive interstate and freeway system, rail lines, and two of the nation's busiest airports – Dallas Fort Worth International Airport and Dallas Love Field .

• McKinney is home to many major corporations including Raytheon, Aramark, Encore Wire, Global Life Inc., Wistron GreenTech, Emerson Process Management, Simpson Strong-Tie, Tenant Tracker, Manner Polymers, Traxxas and Brandon Industries. McKinney has led the way in sustainable development, and its historic business district is one of the largest and most successful in the state.

• Nearby leisure demand generators include District 121, Hub 121, Credit Union of Texas Event Center, Collin College, Craig Ranch, Medical City McKinney and McKinney ISD Stadium. Additionally, the $220 million Sunset Amphitheater is expected to host over 50 events annually after its 2026 opening.

• The property is also located five miles from Allen Premium Outlets, which includes retailers such as Adidas, Ann Taylor, Banana Republic, Coach, Gap Outlet, Kenneth Cole, Last Call by Neiman Marcus, Michael Kors, Polo Ralph Lauren and Tommy Hilfiger.

• As part of the Dallas/Fort Worth Metroplex, McKinney benefits from many great sporting, cultural and entertainment venues in the greater Dallas area.

Highly coveted and expanding Dallas/Fort Worth Metroplex

• The Dallas/Fort Worth Metroplex continues to attract Fortune 1000 and Global 500 headquarters through the growth and expansion of local companies; it is consistently recognized as one of the top markets in the country for new and expanded corporate facilities, including headquarters relocations by AT&T, Comerica, Fluor and Toyota. The latest moves include industry leaders such as AECOM, Caterpillar, CBRE, Charles Schwab, Jacobs and McKesson.

• The metroplex is one of only two regions in the country to host two Fortune 10 companies, namely Exxon Mobil and McKesson, and the combined revenue of Fortune 500 companies based here is $1.4 trillion, second only to the metropolitan area of New York.

• Additionally, many large companies have expanded their distribution, logistics, and manufacturing operations over the years, including Amazon, BMW, DHL, Galderma, General Motors, Molson Coors, and Pratt Industries.

• Corporations such as 7-Eleven, American Airlines, Liberty Mutual, State Farm, FedEx and Pioneer Natural Resources have also expanded into new corporate office space; Additionally, Goldman Sachs and Wells Fargo have announced new office construction projects that will house thousands of employees.

• McKinney has more than doubled its population since 2000. The Census Bureau ranked McKinney as the nation's fourth-fastest growing large city from 2010 to 2019, determining that the city's population in in 2020 it was 195,000 (rounded). Based on Census Bureau estimates, as of July 2022, the city's population had already grown to 207,000 (rounded).

Long-term, 20-year franchise license agreement with IHG

• Upon acquisition and approval, an investor can expect a new 20-year franchise license agreement with IHG.

• According to IHG, the fiery brand focuses on essentials done exceptionally well, including a great night's sleep in a clean room; a high-quality, fast-food breakfast; and a modern design with the latest technology—all offered to guests with exceptional service.

• IHG's booking channels captured an average of 88.0% of hotel bookings in 2023, with 53.9% of bookings linked to IHG's One Rewards loyalty program.

Availability of management

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