DoubleTree by Hilton, Charlotte Airport, North Carolina
Phoenix American Hospitality acquired the Doubletree by Hilton Airport in Charlotte, NC, and will take over management on January 1, 2019.
Property Description
Name: Hilton Doubletree
Location: Charlotte, NC
Acquisition Date: May 28, 2015
Acquisition Price: $16.2 million
Keys: 173
Purchase Cap Rate: 10.6%
Economics
Cap Ex: $3,500,000
NOI at Purchase: $1,717,200
Current NOI (T-12): $3,200,660
NOI: $1,483,460
Increased NOI: 85%
Commentary
Expense Reductions:
● Improved cleaning staff efficiency for a net savings of 12%
● Relocation of on-site accounting staff to central headquarters for a net savings of 22%
● Renegotiated franchise fees saving 9%
● Reduced reliance on sales concessions (free breakfast, movies, etc.), for a net savings of 14%
Revenue Improvement:
● Renegotiated existing contract group business resulting in the creation of an additional $311,000 in cash flow
● Increased RevPar* by implementing pricing strategies
● Results: Current value of $37.6 million (based on an 8 ½% cap rate)
*Revenue per available room
