Staybridge Suites in Indianapolis, Indiana
The Staybridge Suites in Indianapolis, Indiana, is an upscale extended-stay hotel located
in the thriving Fishers market, a rapidly growing suburb just north of downtown
Indianapolis. The property is part of a portfolio acquisition and has undergone significant
upgrades in recent years, positioning it for continued growth as the market stabilizes.
Key Property Details:
Brand: IHG
Number of Rooms: 145
Location: 9780 Crosspoint Blvd, Indianapolis, Indiana
Year Built: 2000
Key Amenities: Complimentary breakfast buffet, full kitchens in rooms, 24/7 fitness center, indoor pool, business center, meeting space
Investment Strategy: The investment strategy for Staybridge Suites focused on leveraging the property’s brand strength and location to improve operational efficiency, enhance guest satisfaction, and drive RevPAR growth. The hotel underwent $4.6M in upgrades to guest rooms and public spaces between 2018 and 2019, setting the stage for post-COVID recovery.
Performance Overview (Q2 2024)
Occupancy: 68.4%, slightly below the prior year but still ahead of the projected budget.
ADR (Average Daily Rate): $120.58, representing an increase of $11.74 compared to the previous year.
RevPAR (Revenue per Available Room): $82.42, $6.58 higher than the prior year.
Year-to-Date Revenue: $2.19M, surpassing the previous year by $190K.
Operational Highlights:
The property has consistently set records for topline revenue in recent months, driven by a mix of business travelers, extended-stay guests, and regional leisure demand.
Recent upgrades to heating and cooling systems, along with additional capital improvements, have enhanced guest experience and operational efficiency.
The property is expected to reach pre-COVID performance levels by 2025, leading to significant value appreciation.
Financial Analysis
Investment Metrics:
Purchase Price: $7.69M
Projected 5-Year IRR: 36.38%
Equity Multiple (5-Year): 4.45x
Projected Exit Value: $17.8M (based on a 4.0x revenue multiple)
Investor Cash Flow:
Year 1: -5.92%
Year 2: 10.71%
Year 3: 18.85%
Year 4: 24.66%
Year 5: 27.13%
Exit Strategy: The plan includes either refinancing the property after achieving stabilization or selling it at an estimated value of $17.8M. Investors are expected to receive significant returns from cash flow distributions during the hold period and proceeds from the eventual sale.
Conclusion
The Staybridge Suites in Indianapolis, Indiana, is well-positioned to benefit from the growing demand for extended-stay accommodations in a vibrant suburban market. With a comprehensive value-add strategy and experienced management, the property offers investors strong potential for above-market returns. The combination of brand strength, location, and operational improvements make this a compelling investment opportunity.