Hampton by Hilton Jackson/Clinton in Clinton, MS Listed for Sale

Jennifer Stein Real Estate, Inc., as the sole and exclusive advisory firm to ownership, presents the opportunity to acquire the 71-key Hampton Inn by Hilton Jackson/Clinton, a limited-service hotel asset in Clinton, Mississippi. A more “hands on” investor will have the ability to realize the significant upside of acquiring a recently renovated property with further potential at a price well below replacement cost.
Ideal Opportunity for Owner/Operator to Acquire First Hilton Asset
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The 71-key count is highly attractive for an owner/operator looking to acquire its first Hilton-branded asset.
Operational Upside Potential for Robust Operator
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Since 2021, the hotel has averaged an annual gross operating profit (GOP) of 37.9%, with an average net operating income (NOI) flow-through of 25.0% (rounded).
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Based on a selection of similarly aged Hampton by Hilton operating statements, the hotel should achieve a stabilized GOP margin between 44.0% and 48.0%.
Increasing Revenue Trend
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The hotel’s rooms revenue for the trailing-twelve-month (TTM) period ending in May 2024 equated to $1,615,000 (rounded).
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In a comparison of year-over-year trends for the year-to-date period through May, the hotel’s rooms revenue increased 8.2% in 2024.
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Per the April 2024 STR report, room-night demand in the submarket through the TTM period ending in April 2024 increased by 5.2%.
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Based upon the HVS pro-forma projections, stabilized rooms revenue in 2026 is anticipated to surpass $1.8 million, with an NOI ßow-through of $580,000 (rounded).
Attractive Rooms Revenue Multiplier (RRM) – 3.65x
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Based on the $5,900,000 pricing guidance, the hotel asset underwrites to an attractive 3.65 RRM based on the TTM May 2024 rooms revenue.
Recently Renovated Asset
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Current ownership recently spent over $1.35 million, or $19,000 per key (rounded), on an extensive renovation of the property, including the public areas and guestrooms.
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A minimal change-of-ownership property improvement plan (PIP) is expected. The PIP report has been ordered and will be uploaded to the virtual deal room (VDR) upon receipt.
Discount to Replacement Cost
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To construct a similar limited-service hotel asset with comparable amenities, the estimated all-in investment would be a minimum of $130,000 to $150,000 per key.
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This opportunity presents an investor with the ability to acquire the property at a price well below replacement cost at $83,100 per key.
Highly Sought-After Hilton Franchise
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Upon completion of the change-of-ownership PIP, an investor can expect a new, ten-year franchise license agreement with Hilton.
Excellent Location Among Numerous Demand Generators
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The property benefits from its strategic location and accessibility near the intersection of Interstate 20 and Springridge Road, part of the greater Jackson, Mississippi, metropolitan area, inclusive of Clinton.
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Local demand generators in the area include Mississippi College, Clinton Crossing Mall, Continental Tire Plant, McNeely Plastics, Taylor Power Systems, Gulf States Canners, and E3 Environmental.
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The largest employer in Clinton is Continental Tire, which opened its latest manufacturing plant in 2019, employing over 2,500 people.
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Mississippi College is a private university that encompasses over 320 acres, serving more than 4,700 students with a 13:1 ratio of students/faculty. The accredited university offers 80 undergraduate degrees, 50 master’s degrees, and select doctoral degree programs. Additionally, the school’s NCAA Division-II football team plays its home games at the 8,500-seat Robinson-Hale Stadium.
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Last year, McNeely Plastics announced a multimillion-dollar expansion of its manufacturing facility in Clinton, including the addition of 30,000 square feet to the existing facility, as well as the construction of a new, 57,000-square-foot distribution facility. The project is slated for completion by 2027 and is anticipated to create 50 direct jobs and 80 indirect jobs.
Management Availability
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The hotel asset is being offered free and clear of any management encumbrances, providing an investor with the flexibility to revamp the operational strategies of the current operator.
For inquiries please execute the Confidentiality Agreement.
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