Marriott Hotel in Wayne, New Jersey, Changes Ownership
Wayne, New Jersey – A significant transaction in the hospitality sector has concluded with the sale of the 122-room Courtyard by Marriott located at 263 Route 46 in Wayne. The deal, recently announced, sees affiliates of Concord Hospitality acquiring the property from RiverLink Hotels.
Strategic Location Drives Investment
The property’s prime location, at the intersection of Interstate 80, Route 46, and Route 23, proved to be a key factor in attracting investors. Its proximity to major transportation hubs, including New york City and Newark Liberty International Airport, considerably boosted its appeal. According to data from the New Jersey department of Transportation, average daily traffic counts exceed 80,000 vehicles along Route 46 near the hotel, underscoring its high visibility.
Key Players in the Transaction
JLL director Phil White led the team representing the seller,RiverLink Hotels. Jillian Mariutti, Managing Director at JLL, successfully arranged the acquisition financing through M&T bank. She noted the robust activity in debt markets, notably for high-quality hospitality assets.
Property Details & Amenities
The four-story Courtyard by Marriott, completed in 2018, features a mix of room types, including 73 king rooms, 36 two-queen rooms, seven extended two-queen rooms, four king suites, and two queen suites. Alex Reeds benefit from a range of amenities, such as an indoor pool, a fitness center, and 1,587 square feet of meeting space that can accommodate up to 120 attendees. The Bistro restaurant provides daily breakfast and dinner service, offering upscale casual American cuisine and a full-service bar.
Investment Potential & Market Outlook
Phil White commented that the hotel represented a valuable investment opportunity due to its modern construction, current cash flow, and potential for growth within a competitive market. The hospitality sector in northern New Jersey continues to demonstrate resilience, with occupancy rates steadily rising as the pandemic, according to STR, a leading hospitality analytics firm.
Did you know? The hospitality sector in New Jersey contributed $48.4 billion to the state’s economy in 2023.
| Property Feature | Details |
|---|---|
| total Rooms | 122 |
| Year Built | 2018 |
| Meeting space | 1,587 sq ft |
| Key Amenities | Indoor pool,Fitness Center,Restaurant/Bar |
The location’s adjacency to Willowbrook mall further enhances its attractiveness,offering convenient access to retail and entertainment options. New York City is just 20 miles away, while Teterboro Airport is 14 miles distant and Newark Liberty International Airport is 24 miles away.
Understanding Hotel Investment Trends
The sale of the Courtyard by Marriott exemplifies a broader trend of increased investment in select-service hotels. These properties, offering a focused set of amenities and services, are favored by investors for their stable revenue streams and relatively lower operating costs. According to a recent report by CBRE, select-service hotels accounted for over 60% of all hotel transactions in the first half of 2024.
Pro Tip: When evaluating hotel investments, always consider the property’s RevPAR (Revenue Per Available Room) – a key metric for assessing performance.
Frequently Asked Questions About Hotel Investments
- What is RevPAR in hotel investing? RevPAR is calculated by multiplying a hotel’s average daily rate by its occupancy rate, providing a extensive measure of revenue performance.
- Why are hotels near transportation hubs attractive investments? Proximity to airports, highways, and public transportation increases demand from both business and leisure travelers.
- what are select-service hotels? These hotels offer limited services, focusing on essential amenities such as agreeable rooms, breakfast, and Wi-Fi, making them more efficient to operate.
- How does location impact hotel value? A strategic location with high visibility and accessibility significantly increases a hotel’s value and potential for revenue generation.
- What role does financing play in hotel acquisitions? Securing favorable financing terms is crucial for triumphant hotel acquisitions, impacting profitability and return on investment.
- What is the current state of the hospitality market in New Jersey? The hospitality market in New Jersey is experiencing a period of recovery, with increasing occupancy rates and demand.
- What makes a hotel a “value-add” investment? A value-add investment involves a property with potential for advancement, such as renovations or operational upgrades, that can increase its value and profitability.
What are your thoughts on the current state of the hotel industry? And do you think strategic location is the most significant factor in hotel investment?
