Trumbull Marriott Shelton Hotel in Trumbull, CT Listed For Sale
Trumbull Marriott Shelton Hotel
CBRE Hotels is the exclusive agent acting for the court-ordered receiver regarding the solicitation of offers to purchase the fee simple interest in the 325-room Trumbull Marriott Shelton. The Hotel is located at the intersection of the Merrit Parkway (CT-15) and CT-8 at 180 Hawley Lane in Trumbull, Connecticut. The Property is equidistant from Norwalk to the southwest and New Haven to the northeast and is less than two hours from New York or one hour from Hartford.
It is operated by Marriott but can be delivered free of management with a long term franchise agreement for various Marriott brands including Marriott, Four Points or Delta. The Hotel sits on a near 12-acre site and offers almost 20,000 square feet of meeting space. It has excellent fitness facilities, indoor and outdoor pools, a spacious lobby area alongside well-proportioned public spaces and spacious guestrooms. Last updated in 2008, the Property will benefit from a comprehensive renovation bringing the facilities to the most up-to-date standards. The Property comes with more than $8 million reserve in an escrow account to contribute towards a renovation. This offering provides a tremendous opportunity to acquire one of western Connecticut’s most established full-service conference hotels, with the ability to drive upsdie by improving its performance through a comprehensive renovation and converting brand to third-party management.
The lodging market is driven by an extensive network of top fortune 500 companies, academic institutions and medical facilities. BIC Corp, Sikorsky, Sacred Heart University and St Vincent’s Medical Center are just a few of the many lodging users in the area. The Hotel’s competitive position as one of the leading meeting and event hotels in western Connecticut attracts SMERF and corporate group demand throughout the region between New York and Boston. It has relatively little competition for group, banquet and catering business due to its extensive meeting space and facilities not matched by any hotel between Stamford and New Haven.
In 2023, the Hotel had a 57.6% occupancy at a $143.11 ADR, but achieved a fair 78.4% RevPAR penetration, far below its historical norms between 95% and 105% due in part to the tired condition of the asset, distressed situation with the owner and its continuing return of the group segment which is just now fully recovering. Upon completion of the PIP renovation and return of group and corporate demand over the next two to three years, we anticipate the Hotel’s RevPAR penetration returning to 100%+, resulting in a NOI above $4 million.
Investment Highlights
Needed Renovation to Drive Performance
Marriott International has provided a relicensing PIP as a franchised operation. The scope of the PIP is extensive and calls for upgrades to comply with brand standards throughout the Hotel. The guestrooms, restaurant and meeting space have not been updated in over a decade and would benefit from a fresh, new and proven orientation of the Marriott brand. Additionally, the PIP includes developing an M Club that would not impact current revenue-generating space but help to attract corporate users as well as drive rate, and giving the meeting space a crisper appearance that is needed to attract higher-end banquet and catering busines.
Impressive Facilities
The five-story, fee-simple Marriott encompasses nearly 12 acres at a vital throughway in southern Connecticut that connects New York City to Boston. Built in 1986, the attractive red brick and glass façade guestroom tower integrates nicely into the bucolic setting, while the extensive groundfloor excellent guest amenities to attract both transient and group guests. Totaling 241,000 square feet, the full-service Marriott has 325 guestrooms, 15 meeting rooms with nearly 20,000 square feet of columnless function space, a large restaurant and bar, a fitness center, full-service gift shop/newsstand and both indoor and outdoor pools.
Marriott Brand Management to Franchise/Third-Party Opportunity
The Marriott is offered unencumbered by brand management, allowing a potential investor to benefit from income related to management fees and efficiencies gained from third party operating model, operating synergies and potential economies of scale. Marriott has offered alternative brands to core Marriott as well and is open to an buyers ideas and considerations.
Attractive Basis
This offering represents an opportunity to acquire a suburban, full-service, nationally branded hotel in at a fraction of replacement cost. Further, a buyer will benefit from nearly $8 million of escrowed funds for the renovation, currently held by Marriott.
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