Hodges Ward Elliott (“HWE”) is pleased to offer the opportunity to acquire the DoubleTree Hot Springs (“Property” or “Hotel”), a waterfront hotel located on popular Lake Hamilton in the thriving resort city of Hot Springs – an area that boasts a diverse and growing population, a strong tourism-centered economy, and numerous recreational and cultural destinations drawing over three million overnight visitors per year. The 142-room Hotel is located within three miles of nearly four million square feet of retail space, including the bustling Uptown Hot Springs Mall, and within six miles of Hot Springs’ nationally renowned tourist destinations of Oaklawn Racing Casino Resort (2.5 million visitors per year) and Hot Springs National Park (2.1 million visitors per year). The Offering presents the opportunity to own a top performing hotel with strong in-place cash flow with further upside that is fee simple and unencumbered of management and debt, granting maximum operational and financing optionality to a new owner.
| Address | |
| Year Opened | 1972 |
| Year Renovated | 2018/2019 ($20M / $140,000+ per key) |
| Keys | 142 |
| Stories | 7 |
| Site Area | +/- 4.55 Acres |
| Construction Type | Concrete/Steel |
| Meeting Space | 8,170 SF |
| F&B | Made Market Restaurant & Bar |
| Amenities |
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| Affiliation | Hilton |
| Interest Conveyed | Fee Simple |
| Management | Unencumbered |
| Labor | Non-Union |
Investment Highlights
RevPAR Leader
The DoubleTree has demonstrated strong and consistent performance as the RevPAR leader amongst its competitive set for the past three consecutive years. The Property’s T-12 RevPAR Index is a remarkable 171.8%, primarily driven by an occupancy premium of nearly 19 points over the competitive set.
Strong In-Place Cash Flow
The Property is generating exceptionally strong cash flow, yielding impressive returns for the new owner during their ownership period. The DoubleTrees’ NOI and EBITDA for Year End 2023 were approximately $3.2 million and $3.5 million, respectively. Total revenue for the period stood at around $7.5 million.
Strategic Location Near Immense Leisure Demand
The Property is prominently positioned directly along the shores of Lake Hamilton, a popular recreational destination that offers a variety of activities such as powerboating, canoeing, kayaking, and fishing, allowing guests to fully immerse themselves in the lakefront experience. Additionally, Hot Springs National Park, located less than 15 minutes from the Hotel, draws over 2.1 million visitors annually to its natural hot springs, which have historically attracted tourists from across the country to Bathhouse Row, a picturesque strip of eight turn-of-the-century historic bathhouses situated just ten minutes from the DoubleTree.
Capitalizing on the significant tourism generated by Hot Springs National Park and Bathhouse Row, the town of Hot Springs, Arkansas, has truly evolved into a “tourist town” with numerous local destinations designed to cater to leisure activities. Among these attractions are the Magic Springs Theme and Water Park, located just ten minutes from the Hotel, which boasts nearly 40 rides and attractions including five roller coasters and eleven water rides. Additionally, Oaklawn Racing Casino Resort, a vast casino complex featuring one of the region’s foremost Thoroughbred racetracks, is less than ten minutes away from the DoubleTree and attracts over 2.5 million visitors annually. Other notable Hot Springs attractions include miniature golf, several golf courses, an array of shopping and dining options, a historic district listed on the National Register of Historic Places, and Majestic Park, one of the first Major League Baseball spring training facilities.
Hot Springs - A Premier Southeast Destination
The DoubleTree features an exceptional location in Hot Springs, Garland County, Arkansas, which has experienced tremendous growth and development over the last 20 years. Garland County now boasts a population of over 100,000 permanent residents and a thriving tourism industry that commands over 3.6 million visitors each year and has seen increased demand since the post-pandemic ‘work from anywhere’ phenomenon. The DoubleTree benefits from diverse demand, including a strong group business base given its proximity to Little Rock, the state’s capital. Leisure-oriented demand stems from the Hotel’s highly accessible location within 400 miles of over 54 million people and proximate to numerous major urban centers, including Little Rock (±60 miles), Shreveport (±170 miles), Fayetteville (±180 miles), Memphis (±190 miles), Tulsa (±250 miles), Springfield (±260 miles), and Dallas (±280 miles), among others. In addition, Bill and Hillary Clinton National Airport, formerly known as Little Rock International Airport (< one hour from the Hotel), features direct flights to and from Chicago, New York, Los Angeles, and Dallas.
Excellent Physical Condition + Renovation Upside
The DoubleTree was converted from a Clarion Resort in 2018/2019 when the current ownership completed an extensive $20 million ($140,000+ per key) gut renovation of the Property. Since then, ongoing renovations have been smaller in scope to meticulously maintain the Hotel. Looking ahead, the DoubleTree stands to benefit from a guest-facing renovation upon a change in ownership. The pending renovation will allow the Hotel to further cement its superior market position and will be a catalyst for outsized rate growth in the coming years.
Trending Hotel Submarket
The Arkansas South Area submarket (where the DoubleTree is located), exhibited a new RevPAR peak for T-12 June 2024 that was 27% higher than its year-end 2019 figure. The COVID-19 pandemic was not nearly as impactful to the Arkansas Area market as it was to most lodging markets across the U.S. The past few years of recovery have been marked with impressive growth, with ADR leading the way.
No New Supply Risk
There are no hotels under construction in Hot Springs or the surrounding area, providing a new owner the unrivaled opportunity to capture a large share of the market for the foreseeable future.
Optimal Offering - Fee Simple, Non-Union, Unencumbered by Management
The Property is offered fee simple and free and clear of existing management and financing, affording new ownership maximum optionality in the future operation and capitalization of the Hotel.
Power of Hilton
Hilton is one of the most recognized and respected names in the hospitality industry. With over 100 years of experience, Hilton has established a reputation for delivering top guest experiences. With a collection of 22 distinct brands, Hilton provides exceptional stays in more than 7,500 worldwide locations, providing a vast network that attracts both leisure and business travelers. Its rewards program, Hilton Honors, is a powerful loyalty tool that boasts nearly 190 million members globally, driving repeat business and customer loyalty.
