August 2024

Pinnekel

 Hotel Vision - The Beverly Beach Hotel         Seeking partners to purchase. We manage partners enjoy.

Pinnekel is pleased to present to qualified investors the Beverley Beach House, located at 2502 N Ocean Blvd, Myrtle Beach, SC 29577. The subject property is a 26-room six-story, interior-corridor, limited-service asset located on the oceanfront on North Ocean Blvd. The property, built in 1974, and renovated in 2019 sits on a 0.26-acre The hotel is conveniently located in Myrtle Beach, South C arolina and is nearby major cities like Charleston, South Carolina and Wilmington, North Carolina.

The current ownership spent over $1 Million on property renovations which included upgraded room furniture, mattresses, case goods, linens, bathtub refinishing, drapery, room locks and hardware in addition to modernizing and replacing the elevators, PTAC/HVAC upgrades, exterior repair, sealing and painting, exterior signage, roof repairs, fitness center and a few other upgrades. 
Why Pinnekel?

We hold a highly diversified portfolio of over 150 assets. Encluding SouthernBusiness, VueBeaches.com , VueSOUTHCAROLINA.com and  VueMyrtleBeach.com. We employee our assets to reduce risk and signifianctly increase ROI to our partners. 

For a dataset comprised of 35 hotels under the Upscale and/or Upper-Midscale segments, the Myrtle Beach Oceanfront showed Occupancy of 62.4% and ADR of $174.44 in 2023. For the same dataset, the Myrtle Beach Oceanfront showed Occupancy of 58.7% and ADR of $172.11 in 2022. For the same dataset, the Myrtle Beach Oceanfront showed Occupancy of 59.6% and ADR of $165.10 in 2021 .

Similarly, for a dataset comprised of 88 hotels under the Upscale and/or Upper-Midscale segments the Myrtle Beach MSA showed Occupancy of 61.2% and ADR of $160.89 in 2023. For the same dataset, the Myrtle Beach MSA showed Occupancy of 58.2% and ADR of $158.51 in 2022. For the same dataset, the Myrtle Beach MSA showed Occupancy of 59.2% and ADR and $157.87 in 2021.

Based on the operating statistics reported by CoStar, rooms revenue upside exists for a prospective purchaser of the Beverley Beach House through a sophisticated, hands-on sales and rate management effort. Compared to the CoStar data presented for Myrtle Beach Oceanfront hotels in the Upscale and/or Upper-Midscale categories, the Beverley Beach House showed Occupancy penetration indexes of 87%, 83%, and 74%, in 2021, 2022, and 2023, respectively: achieving occupancy of 52% in 2021, 49% in 2022, and 46% in 2023, compared to the dataset which achieved Occupancy of 60%, 59%, and 62% (rounded) in 2021, 2022, and 2023, respectively. Similarly, compared to the data presented for Oceanfront hotels, the Beverley Beach House showed ADR penetration indexes of 79%, 94%, and 97% in 2021, 2022, and 2023, respectively: achieving ADR of $130 in 2021, $162 in 2022, and $170 in 2023, compared to the dataset which achieved ADR of $165, $172, and $174 (rounded) in 2021, 2022, and 2023, respectively. Overall, the Beverley Beach House achieved revenue per available room that was approximately 31% lower than the dataset in 2021, 21% lower than the dataset in 2022, and 28% lower than the dataset in 2023, signaling strong operational upside to a prospective purchaser. A prospective purchaser can utilize recent renovations bcompleted at the property to position the hotel as a premier lodging option on North Ocean Blvd on the Myrtle Beach Oceanfront to increase Occupancy and ADR, and thereby increase returns.

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