|Number of units||356|
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Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to offer, on an exclusive basis, the fee simple interest in the 356-room Buffalo Marriott Niagara (the “Hotel” or “Property”) located on 10.6 acres of land in Amherst, New York. The ten-story, full-service Hotel features 356 guest rooms, BlueFire Bar & Grill, an indoor and outdoor pool, a ﬁtness center, a business center, a market pantry, guest laundry facilities, a concierge lounge, an airport shuttle, and 11,500 SF of meeting and event space. Built in 1981 as the premier full-service hotel in suburban Buffalo, the Property has been institutionally maintained and beneﬁts from more than $4.9 million ($13,823 per room) of capital expenditures since 2012.
Centrally located in Buffalo’s most populous suburb, the Buffalo Marriott Niagara is strategically situated next to the University at Buffalo North Campus which enrolls more than 29,000 students annually. The Property also beneﬁts from its proximity to Buffalo Niagara International Airport, downtown Buffalo, and Niagara Falls. The Buffalo-Niagara region is home to a vibrant cluster of 21 universities with more than 105,000 students, a 120+ acre medical campus and collaborative research park in downtown Buffalo, and a diversiﬁed economy focused on the advanced manufacturing, business services, agribusiness, life science and logistics industries. Some of the largest employers in the market include M&T Bank (headquarters), Geico, Citigroup, Fidelis Care, KeyBank, Ingram Micro and IBM.
The Buffalo Marriott Niagara presents investors with the opportunity to acquire a well-located, highly-visible, full-service Hotel fully unencumbered by brand and management. A new owner has complete ﬂexibility in terms of ongoing operating strategy including renovating the hotel to maintain the existing Marriott franchise, rebranding with a new hotel franchise, or considering alternative uses for the building. Additionally, the Hotel’s 10.6 acre site includes excess land that allows additional commercial development under current zoning. Future plans call for the rezoning of the site to a mixed-use district that would accommodate more density and additional uses including multi-family, senior living, student housing, retail and office amongst others.
A Strategic Location with Excellent Visibility. The Buffalo Marriott Niagara is ideally located off of Interstate 290 in Buffalo’s most populous suburb. The Hotel is centrally located in Amherst, New York, 10 miles northwest of Buffalo Niagara International Airport, 13 miles northeast of downtown Buffalo and 19 miles southeast of Niagara Falls. The ten-story Property is the tallest building in the region and as such beneﬁts from excellent visibility.
Proximity to Demand Drivers. The Buffalo Marriott Niagara beneﬁts from its proximity to a diverse set of demand drivers including the University at Buffalo (29,000 students) situated directly next to the Hotel, Niagara Falls attracting more than 7.6 million visitors annually, downtown Buffalo attractions, Buffalo Niagara International Airport, and 13.9 million SF of office space within a ﬁve mile radius. Some of the largest employers in the market include M&T Bank (headquarters), Geico, Citigroup, Fidelis Care, KeyBank, Ingram Micro and IBM. Additionally, the Greater Buffalo-Niagara region is home to 21 universities (105,000 students), a 120+ acre medical campus and collaborative research park in downtown Buffalo, Buffalo Canalside Waterfront (+1,000 annual events), and a diversiﬁed economy focused on the advanced manufacturing, business services, agribusiness, life science and logistics industries.
High-Quality, Full-Service Hotel. Built in 1981, the ten-story Buffalo Marriott Niagara is an institutionally-maintained, high-quality Hotel with a large amenity set. The Property features 356 guest rooms including 5 suites, BlueFire Bar & Grill, an outdoor pool, a ﬁtness center, a business center, a market pantry, guest laundry facilities, a concierge lounge, an airport shuttle, and 11,500 SF of meeting space including an 8,112 SF Grand Ballroom which is the largest in suburban Buffalo. The Hotel has received $4.9 million ($13,823 per room) of capital expenditures since 2012. The Hotel’s favorable amenities and full-service offering allow it to out-perform its competition. However, the opportunity exists to further improve performance through additional capital expenditures.
Fully Unencumbered, Repositioning Opportunity. The Buffalo Marriott Niagara is being offered unencumbered by both brand and management allowing a new owner complete ﬂexibility as it relates to operating strategy and future positioning. The continued operations of the Property as a hotel would allow a new operator to generate substantial operating revenue, supported by the Hotel’s $526,000 of management fees achieved at peak performance. Investors will also have the opportunity to renovate the Hotel and renew the Marriott franchise affiliation, affiliate the Hotel with a new brand (available brands include Delta, Crowne Plaza, and Wyndham), or consider alternative uses for the building such as multi-family, student housing, or senior housing amongst others. Additionally, the Hotel features extensive public space including a restaurant, a ﬁtness center, meeting rooms, administrative offices, and a spacious lobby. A new owner may opt to convert a portion of the Hotel’s public areas into different uses.
Development Potential. The Hotel sits on a 10.6 acre site with excess land. The Town of Amherst intends to rezone the site to a mixed-use district that would allow for greater density on the property, permitting most commercial and multi-family uses such as senior living, student housing, retail and office amongst others (a density study is available for review in the virtual document center). The new zoning initiative provides a variety of attractive development scenarios that would allow for the continued operation of the existing hotel, while developing the site’s surplus land. This development potential of the site represents a rare value-add opportunity.
Historically Strong Operating Results. The Buffalo Marriott Niagara has a proven track record for generating strong operating results. At its peak in 2013, the Hotel achieved nearly $17.6 million and $5.3 million of total revenue and net operating income, respectively. In the trailing twelve months through February 2020 (pre Covid), the Hotel achieved an occupancy of 66.5%, an average daily rate of $114.03, a RevPAR of $75.84, and a net operating income of $2.5 million at a 19.3%margin. The opportunity exists to signiﬁcantly enhance top and bottom line performance by renovating and repositioning the Hotel, returning the asset to its prior, historic level of net income generation.