Marcus & Millichap is pleased to offer the opportunity to acquire the La Quinta Inn & Suites Hickory located in Conover, North Carolina. The subject property consists of 8 stories and 107 well appointed guest rooms. The La Quinta Inn & Suites offers an array of room types including king & double-queen suites, King Jacuzzi suites, standard kings and double queen rooms. The hotel offers premium amenities to its guest such as, complimentary “Bright Side” breakfast, pillow-top beds, high-speed Wi-Fi, business center, spa, fitness center, meeting facilities, outdoor seasonal pool and jacuzzi. There are additional guest rooms available.
The La Quinta Inn & Suites generated over $1,775,000 in both 2016 and 2017 with a consistent NOI of nearly $560,000. Continuing the trend, the La Q generated over $1,800,000 in 2018. The subject hotel is offered well below replacement costs with significant upside through hands on management and marketing. Currently the property is being operated by an out-of-state owner and captures only 74% of is competitive set market share.
The Property Improvement Plan is expected to be approximately $3,000 a unit or $321,000. The listing broker expects a significant boost in rate, occupancy, and RevPAR post renovation with an expected year 1 revenue in excess of $2,000,000. The La Quinta Hickory also contains over 5,000 square feet of meeting space as well as an on-site restaurant, offering an investor upside through a long-term lease opportunity. The La Quinta currently ranks #1 of 4 hotels on TripAdvisor and achieves a rating of 4.5 out of 5 stars.
Hickory is a small city located in western North Carolina between Charlotte and Asheville in the foothills of the Appalachian Mountains. The city of Hickory has grown from a tiny town to a city with a population over 35,000 residents. Recently, in the magazine, Readers Digest, Hickory was named the 10th best place to line in the United States. The city of Hickory was shaped into an All-American city through its rich history as well as Hickory’s ability to successfully preserve its historical landmarks.
The construction of Interstate 40 as well as the opening of a shopping mall further industrialized Hickory. In 1968, 1987, and 2007, Hickory was named an All-American city, making it one of only a few to receive this honor three times (Milestones in Hickory History). In the 1900s, many people that lived in Hickory began to work with furniture, and the furniture market covered “over one million square feet of retail space.” Furthermore, the furniture company of Hickory is one of the most famous in the country and is called the Hickory Manufacturing Company.
During World War II, the government took advantage of Hickory’s resources and used their furniture factories to make boxes for ammunition (Hickory, North Carolina 6). Hickory is mainly famous for furniture because the people in the furniture business wanted to combine “the authenticity of classic craftsmanship with the efficiency of modern manufacturing” in order to make a perfect dining chair.