Aloft, Rogers, Arkansas
Phoenix American Hospitality Case Study: Aloft, Rogers, Arkansas
Property Description
Name: Aloft
Location: Rogers, AR
Acquisition Date: July 2017
Acquisition Price: $16.2 million
Keys: 130
Economics
Incremental Capex (over 2 years): $266,000
NOI at Purchase: $1,428,000
Current NOI (T-12): $1,692,901
Increase in NOI: $264,901
Commentary
Expense Reductions:
● Re-negotiated landscaping, internet and contract cleaning, resulting in a total reduction of expense of 34% year over year
● Adjusted employee contributions of health insurance benefits and re-negotiated with provider for a total of a 36% expense savings, year over year
● $1.6k savings in laundry chemical savings from renegotiated P&G agreement
Revenue Improvement:
● RevPAR-YTD: 89.35 vs LY: 82.08
● ADR-YTD: $132.26 vs LY: $124.42
● Walked away from Walmart @$105 rate, now capturing Retail @ increase ADR of $152-167
● Capturing new LNR’s at higher ADR for 2019 $149-169
● Increase Deloitte from $110 to $115 for 2019 (top account) 2018 RN’s: 4,082 YTD: 4,284
These hotels are not currently owned by American Hospitality Properties REIT, Inc. They are owned by another Fund sponsored by Phoenix American Hospitality and are managed by an affiliate of the sponsor. Past performance is no guarantee of future results.
