Baymont Inn, Hotel Syndication in Jesup, GA

[Danny Frye]

Investment Info:

Other other investment.

Purchase price: $997,000
Cash invested: $450,000

In 2019 the property was rebranded from a Ramada Inn to the Baymont Inn and Suites (improvement). The Ramada generated around $600,000 in annual gross income, with a valuation of $2.4MM. The current owners are behind on Baymont Franchise Improvement Plan and with COVID-19 effecting the submarket by an average around $200,000 annual gross income, it is currently performing at $300,000 gross income with a valuation around $1.7MM. We expect to see a rapid return to 2019 numbers once the property is stabilized and the impact from COVID-19 has recovered.

Archimedez International, LLC will structure, organize and manage Hammond Investment Partners, LLC to Joint Venture with Davalls Hospitality to form Jesup Lodging, LLC for the acquisition of the Baymont Inn and Suites in Jesup, GA for the purpose of improving, stabilizing and disposing the property for a substantial profit. Both Hammond Investment Partners and Davalls Hospitality will create Jesup Lodging, LLC

Jesup Lodging, LLC intends to acquire the Baymont Inn and Suites in Jesup, GA for around $977,500 for the purpose of increasing the NOI to raise the valuation of the property to $3MM within 5 years by increasing occupancy and nightly room rates through expert management and improving/updating the property condition.

A Comparable limited service hotel in Jesup is currently listed for $2.5MM (Quality Inn). We believe after the completion of necessary updates (roughly $200,000 in improvements) and high efficiency management, gross income can be increased to $750,000 by year 5. This increase in Gross Income along with market conditions outlined in the proforma could give the property an estimated value of roughly $3MM based on a market cap rate of 11%.