Hampton Inn & Suites Newtown Trades in $10.72M Deal

Property Primed for Improvement Plan, Extending Hilton License for 15 Years

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. February 08, 2017

YARDLEY, PA. February 8, 2017 - In a region characterized by robust corporate lodging demand, the Hampton Inn & Suites Newtown has sold to Yardley Hospitality Holdings, LLC for $10,762,000. Colliers International brokers Rich Lillis and Carl Neilson represented the seller, lender's entity MLMT 2005-CIP1 Stony Hill Lodging Limited Partnership, an asset managed by LNR Partners. Located at 1000 Stone Hill Road in Newton-Yardley, and within immediate access to some of the area demand generators, the new owner plans to roll out a comprehensive property improvement plan, which would extend the Hilton-brand license for 15 years.

Situated on 1.33 acres, the three-story, 137-room hotel was constructed in 1999 and is located within the Lower Makefield Corporate Center, making it the only hotel in the immediate vicinity. The office park is comprised of three mid-rise Class A office buildings with a total of 275,000 square feet of Class A space and an 87,000-square foot LEED Gold-certified office building.

Such nearby corporate businesses are the driver for healthy lodging demand in the Newtown-Yardley market, a prime location for corporate and professional offices with a concentration of pharmaceuticals, healthcare services, medical publishing, communications and software. Additional leisure and weekend demand to the area is significant, and spurred by attractions such as Sesame Place. The Lower Bucks County lodging market has continued to see impressive RevPAR growth of 9.0% in 2015 and 5.4% in 2014, per hotel market data & benchmarking firm STR. The RevPAR - or Revenue Per Available Room - is a performance metric used in the hotel industry and is the product of the hotel's average daily room rate and its occupancy rate.

"Hampton Inn is the leading limited service brand, and is highly sought after by hotel investors,” said Rich Lillis, Executive Vice President, Colliers International South Florida and member of the firm's Hotel Services Practice Group. Lillis stated interest in the Hotel was strong throughout the marketing process. “The extensive brand-required property improvement plan posed a challenge. Among hundreds of interested investors, 13 qualified offers were received by Colliers, and ultimately Yardley Hospitality Holdings, LLC emerged and was selected as the successful purchaser.”

Carl Neilson, Senior Vice President Capital Markets, Colliers International Philadelphia added, “This transaction represents a tremendous opportunity for all parties involved - and especially the community, which will benefit from the planned upgrades for this hotel in a market that already has a high demand for lodging options.”

The hotel is approximately 29 miles northeast of downtown Philadelphia, directly across from the Delaware River from New Jersey via nearby Interstate-95. Newtown-Yardley ranks first in Pennsylvania in both median and household income, and is a consistent top finisher in the CNN/Money Magazine “Best Places to Live” in Eastern US under 100,000 population.

About Colliers International Group

Colliers International Group Inc. (NASDAQ and TSX: CIGI) is an industry leading global real estate services company with more than 16,000 skilled professionals operating in 66 countries. With an enterprising culture and significant employee ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting. Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice that help clients accelerate their success. Colliers has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals' Global Outsourcing for 11 consecutive years, more than any other real estate services firm. For the latest news from Colliers International, visit Colliers.com or follow us on Twitter (@Colliers) and LinkedIn. For the latest news from Colliers International in South Florida, follow us on Twitter (@ColliersSFL) and LinkedIn.