LEVITTOWN, PA —The Sheraton Bucks County Langhorne Hotel is hitting the auction block.
RI Marketplace has listed the 15-story, 186-room hotel near Sesame Place and its 7.4 acres for auction on Aug. 7-9.
The Sheraton on Oxford Valley Road is also the only premium branded, full-service hotel in the submarket, allowing for an owner to maximize its food and beverage program and drive greater overall revenues while taking advantage of record, property-level performance in 2022., RI Marketplace said.
The hotel was last renovated in 2014/2015, presenting an investor with the opportunity to acquire a well-located, institutional hotel and drive additional upside through the completion of the Property Improvement Plan, RI Marketplace said.
A comprehensive renovation will allow for a substantial lift in the average daily rate the hotel is able to achieve.
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In 2022, the hotel hit record Room Revenue and NOI. This year, RI Marketplace said the hotel is on pace to beat that record at a 14.5 percent increase from pre-COVID times.
RI Marketplace said the revamped food and beverage operations along with the renovations will position the hotel to capture even more growth.
Marriott’s franchise agreement ended last Thursday.
RI Marketplace said there's a lack of quality investment targets despite transaction volume experiencing a meaningful uptick recently. Quality full-service hotel investment opportunities remain limited, allowing for an investor to acquire this premier brand full-service hotel in a high barrier to entry market well below replacement costs.
The hotel will benefit from a slim supply pipeline over the next several years.
According to CoStar, there is zero lodging supply under construction in the Northeast/Lower Bucks County Submarket, RI Marketplace said.
The non-existent supply and new emergence of biotechnology within the surrounding area allow the asset to continue to capitalize on leisure and business travelers.
The hotel is in the STR-defined Northeast/Lower Bucks submarket. The submarket has experienced robust ADR growth with 2023 YTD May ADR already outpacing YTD 2022 by 4.7 percent.
The hotel is located within a one-mile radius of the 10th largest mall in the state, spanning 1.3 million square feet. Oxford Valley Mall, serves as an anchor to a number of surrounding retail uses, collectively being the area’s retail epicenter.
The hotel is also surrounded by an emerging biosciences industry and corresponding medical demand (Jefferson Bucks Hospital, St. Mary Medical Center Grand View Health), industrial demand, and a multitude of corporations (Woods Services, Northtec LLC).
Located in the heart of Bucks County, the hotel also benefits from various leisure attractions, including Sesame Place (which attracts more than 1 million visitors annually), Parx Casino & Racetrack, and local breweries, wineries, wedding venues, and golf courses.
The property is just under 15 miles away from Northeast Philadelphia Airport and under 10 miles from New Jersey’s capital Trenton and its airport Trenton-Mercer Airport, which, along with a comprehensive rail system, allows for excellent regional access to the Northeast Corridor and beyond, RI Marketplace's marketing materials about the hotel states.
JLL’s Hotels & Hospitality Group, as the sole and exclusive agent for the owner, has been retained to offer the premium brand hotel which benefits from easy accessibility to Interstate 295 and Route 1 and its strategic location within Bucks County.