Ground Up New Construction Hotel Project Analysis Help

[Parth Patel]

Hello All, 

I am working on a new construction hotel project in Smithfield, NC, and am seeking constructive feedback from professionals in the hospitality sector. Below are some key metrics and the proforma I have compiled from a feasibility study and an STR report. The site and TownPlace Suites by Marriott flag have already been secured. We have also partnered with a reliable general contractor who will be investing in the project and has extensive experience in mid-scale hotel construction. My partner and I have many years of experience owning and operating hotels in this market and are approved by Marriott to manage this project. Our backgrounds include owning and operating properties under Choice, Hilton, Sonesta, and Red Roof Inn brands.

This will be the second Marriott-branded hotel in Smithfield, with the other being an older Fairfield Inn. We anticipate that demand for mid-scale extended-stay rooms in this tertiary market of Raleigh will continue to rise over the next 5-10 years, as Johnston County is the fastest-growing county in North Carolina. Our current mid-scale property in Smithfield has seen an increasing number of guests staying between 7-29 days. Our closest competitor in Smithfield has achieved an ADR of $140 and RevPAR of $105 in 2022 and 2023, leading us to believe that a new mid-scale extended-stay property can achieve similar numbers.

We welcome any insights from those in the hospitality industry on any aspect of this project. We are quite advanced in the process but would appreciate feedback on the LTC targets for similar builds and whether any of our numbers might be overstated or overlooked.

Thank you!