AC Huntsville Downtown

435 Williams Avenue Southwest, Huntsville, AL, 35801, US

Description

JLL’s Hotels & Hospitality Group, as sole and exclusive agent for the owner, has been retained to offer for sale the leasehold interest in the 120-room AC Hotel Huntsville Downtown (the “AC Hotel,” “Hotel,” or “Property”). The Hotel is situated within the CityCentre master-planned development, surrounded by apartments, office ,and retail offerings. Moreover, the Hotel is located one block over from the Von Braun Center, Huntsville’s premier multipurpose center, that host concerts, trade shows, conventions, and other large group events and gatherings. Huntsville has seen an exponential growth in demand since the COVID-19 Pandemic. The population of Huntsville is estimated to be around 249,000, an approximate 15% increase from the 2020 Census. Huntsville is renowned as a nationally recognized hub for aerospace, defense, and advanced technology. Anchored by the immense presence of Raytheon, the Boeing Company, and Northrop Grumman, along with the Redstone Arsenal—home to the U.S. Army Materiel Command and the Missile Defense Agency—NASA’s Marshall Space Flight Center, and FBI Huntsville, the city has year-round demand and will continue to see further increase demand in both the short and long term.

Offered unencumbered of management, a new owner will have the opportunity to implement their own cost-savings initiatives, and curate an aggressive sales and marketing campaign, while focusing on a sound revenue management strategy. The Hotel is due for its seven-year PIP cycle, which a new owner can oversee to help further drive the Hotel’s top and bottom-line performance. The offering allows a new Owner to acquire a cash-flowing, premium-branded Hotel in one of the most desirable markets in the Southeast at a discount to replacement cost.

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Attributes

Number of units

120

Year built

2019

Building area net

8,050 m²

Media

Investment Highlights

Exceptional Location in a High Growth Market – Hotel sits within the CityCentre master-planned development, just south of Big Spring Park in Downtown Huntsville. Within proximity to the 350K SF Von Braun Center, and the soon-to-be-delivered 11-acre mixed-use development, Front Row Huntsville, the Hotel enjoys a plethora of high-demand generators and walkability in a core downtown location.
Strong Cash Flowing Hotel With Room to Grow – The Hotel has consistently achieved a 30.5% NOI margin on average since 2023. The Hotel is due for its seven-year PIP cycle, which upon completion, should result in an immediate lift in top-line performance. A new owner stands to benefit from acquiring a cash-flowing Hotel at acquisition with upside.
Offered Unencumbered of Management - The Hotel is being offered unencumbered of management, presenting a new owner the flexibility to implement their own revenue management strategies and cost containment initiatives to maximize top-line revenues and bottom-line cash flows.
Highly Desirable Brand Affiliation - The Hotel’s affiliation with Marriott greatly benefits the Property, as the Hotel is able to capitalize on Marriott’s worldwide distribution network, best-in-class reservation system and the Marriott Bonvoy rewards program. Marriott’s extraordinary portfolio and distribution power is achieved through its 9,600+ properties, over 1.7 million guestrooms, and more than 245 million members globally within its Marriott Bonvoy program.
Offered at a Discount to Replacement Cost- Construction costs for premium branded hotels continues to increase amidst the surges in labor costs, sharp increases in material costs, and limited availability of construction financing. The AC Hotel affords an investor the ability to purchase a premium branded hotel below replacement cost.