Banyan Investment Group (BIG), a hotel investment company that acquires and asset manages hotels in the U.S., has completed the sale of the 112-room Holiday Inn Express & Suites Bluffton @ Hilton Head Area in Bluffton, SC, to Trishul Hospitality for an undisclosed price. The transaction generated a 24% IRR and a 3.3x equity multiple.
“We purchased the Bluffton Holiday Inn Express & Suites back in 2014 with the idea that this South Carolina coastal submarket was poised for long-term growth,” said Samir Yajnik, principal/EVP of investments, Banyan Investment Group. “We were confident Bluffton would evolve into a tourist destination, aided by its proximity to several year-round destinations such as Hilton Head Island, SC; Savannah, GA; and Charleston, SC. Our underwriting and research at that time proved to be correct given Beaufort has become the fastest-growing town in Beaufort County, SC, with its population having grown by more than 124% in the last decade. This is directly reflected in the overall operating performance of the property during our hold period and how well it rebounded from the lockdowns and difficult market conditions stemming from COVID. At present, we are diligently pursuing new acquisition opportunities, as exhibited by our recent purchase of the Castle Hotel, an Autograph Collection by Marriott, but always are reviewing our portfolio for opportunities to monetize our investments.”
The four-story hotel is surrounded by multiple, large-scale attractions such as the Marine Corps Air Station, Naval Hospital Beaufort, Hunting Island State Park, Beaufort Marina and the Tanger Outlets. The hotel underwent a multimillion-dollar renovation earlier this year to completely upgrade all guestrooms and public spaces. Amenities include an outdoor pool, 24/7 fitness center, complimentary daily breakfast, free WiFi and 1,248 sq. ft. of meeting space. Guestrooms feature a refrigerator and microwave, two-line phone with voice mail and in-room coffee maker.