Yardley, PA | February 7, 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 Carl Neilson (Philadelphia) and Rich Lillis (South Florida) 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.
“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.” Carl Neilson, Senior Vice President Capital Markets
Rich Lillis, Executive Vice President, Colliers International South Florida and member of the firm’s Hotel Services Practice Group added “"Hampton Inn is the leading limited service brand, and is highly sought after by hotel investors.” 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.
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.