Hodges Ward Elliott ("HWE") has been exclusively engaged by Rock South LLC (the "Sponsor") to obtain an up to $13 million ($79,755 per key) at best available terms to refinance the fee-simple interest in the 163-key Hampton Inn Rock Hill (the "Hotel" or "Property"). Situated on a 2.81-acre parcel in Rock Hill, SC, the select-service Property enjoys a highly visible and conveniently accessible location just off I-77 about 25 minutes south of Charlotte.
The Shikary family, based in Ashland, OH, has owned the asset since 2008, with third party management provided by Emerald Hospitality over this period. The existing CMBS loan with a balance of approximately $12.68 million matures on June 15, 2025. The Hotel also has eight years remaining on the current Hampton Inn franchise agreement with Hilton.
The Sponsor is planning to spend approximately $300,000 on PIP work and an additional $325,000 on other capital expenditures, resulting in $945,000 of "cash-in" at loan closing. To further enhance the credit profile, the Sponsor is willing to offer personal recourse.
FINANCING REQUEST
Property Overview
| 2111 Tabor Dr. | |
| City, St: | Rock Hill, SC 29730 |
| Property Type: | Select-Service Hotel |
| Franchise Affiliation: | Hampton Inn by Hilton (expiration July 2033) |
| Year Built: | 1992 |
| Guestrooms: | 163 |
| Interest: | Fee Simple |
| Owner: | Rock South, LLC |
| Management: | Emerald Hospitality |
loan Request
| Cash-In Refinance | |
| Total Loan Amount: | Up To $13,000,000 |
| Loan Amount Per Key: | $79,755 |
| Sponsor's Total Cost Basis: | $23,100,000 |
| Sponsor's Total Cost Basis Per Key: | $142,000 |
| LTC: | 56.2% |
| Debt Yield: (2024): | 6.7% |
| Debt Yield: (Year 3 PF) | 10.8% |
| Term: | 3-5 Years |
| Interest Rate: | Best Available Floating or Fixed Rate |
| Amortization: | Maximum Available Interest-Only Term |
| Prepayment: | Best Available |
| Recourse: | Recourse Available |
loan Request
Historical and Projected Loan Performance
Attractive Loan Basis
The requested loan basis of approximately $80,000 per key represents a fraction of replacement cost today. Assuming max 65% LTV at the requested proceeds, the required $20 million ($122,700 per key) appraised value is supported by recent transactions in the local market. Pre-COVID NOI in 2019 translates to a 9.8% debt yield, while the Sponsor's pro forma NOI in Year 3 equates to a 10.8% debt yield.
Hampton Inn Rock Hill Sale Comps
BEST-IN-CLASS MANAGER
Emerald Hospitality Associates, Inc. is a full-service hotel company offering specialized services to property owners, institutional lenders, and developers. Founded in 1999 by CEO James R. Gerish, a seasoned hotel industry veteran, the company is headquartered in Westlake, Ohio. Emerald Hospitality is involved in 30 properties, including 5 Hampton Inns, primarily located in the Eastern half of the United States. Emerald Hospitality's mission is to serve guests, clients, and staff by applying personal and corporate integrity to each task, providing effective, results-oriented, and innovative service that generates true value and commitment to excellence. The company prides itself on a strong commitment to hiring, training, and retaining top hospitality professionals, aiming to deliver exceptional guest experiences across its portfolio of award-winning hotels.
SPONSOR OVERVIEW
Fatema Shikary along with her late husband Dr. Abbas K. Shikary, first got into the hotel business with the purchase of a Day’s Inn in Georgia in 1992. They continued to grow their hotel business with the purchase of a Holiday Inn Express in Georgia in 1994. They also developed and built a Hampton Inn in Wooster, Ohio in 1997 and a Hampton Inn in New Philadelphia, Ohio in 1998. They purchased a Comfort Inn in Seville, Ohio in 1998. Dr. Shikary and Fatema wanted to move up to a full service hotel and to find a management partner to help them manage their hotels as well as find more hotels to either build and or purchase. It was an excellent opportunity for all parties to meet with Jim Gerish who had developed his management company, Emerald Hospitality Associates, Inc., as well as a plan to finance and develop hotels with the right partner. Emerald began managing their hotels, which allowed them to focus on new projects with Jim’s assistance. The 1st project they did together is develop and build the Hilton Garden Inn in Wooster, Ohio, which was completed in 2005. As they continued to expand their hotel portfolio, they also continued to expand the friends and family network of investors. This group went on to purchase the Hampton Inn Rock Hill, South Carolina in 2008.
In 2013 Nimbus Investment Fund was founded in order to streamline and formalize the process of raising funds for the purchase of hotels. Through this investor group, the following hotels were purchased or constructed:
Investment Highlights
INCREDIBLE ACCESSIBILITY and VISIBILITY
The Property is conveniently located just off I-77 with an average daily traffic count exceeding 163,000 vehicles in York County. Positioned less than 30 minutes from Charlotte—ranked as the third fastest-growing city in the United States, adding nearly 16,000 new residents in 2023—this location offers exceptional accessibility and connectivity to one of the region's most dynamic urban centers.
IDEAL LOCATION WITH HEALTHY BUSINESS/LEISURE MIX
The Property boasts an ideal location near major employers like Giti Tire and is proximate to 3D Systems and Atlas Copco, a leading air compressor supplier with approximately 1,000 employees in Rock Hill and the greater Charlotte region. It is also within minutes of Rock Hill’s Downtown Historic District, home to attractions such as the Main Street Children’s Museum, Glencairn Garden, and Winthrop University, making it a popular destination for tourists. Additionally, Carowinds, a 407-acre amusement park just over the North Carolina border, draws nearly two million visitors annually.
York County’s Unprecedented Growth: Over 4,000 New Jobs and $1.6 Billion in Investments
Over the past five years, York County has experienced a surge in economic growth, with more than 50 major new projects and expansions announced, resulting in the creation of over 4,000 new jobs. In 2023 alone, the county successfully completed eight projects, contributing approximately $1.6 billion in capital investments. Looking ahead, Rock Hill is poised for a transformative economic boom over the next five years, driven by an unprecedented pipeline of new developments and investments that are set to reshape the region’s economic landscape.
QTS Data Center
$1 billion investment
400-acre site
New data center for the global provider of colocation (shared) infrastructure and related services
Southbridge
350-acre mixed use project
4 million square feet of Class A office space
400,000 square feet of retail space
600+ residential units
Up to 23,000 jobs created upon completion
Ballantyne Reimagined
Three-phase mixed-use redevelopment
1,200 multifamily units
400,000 square feet of office space
300,000 square feet of retail space
3 dedicated light rail stops
Outdoor amphitheater
University Center at Knowledge Park
$200 million mixed-use development
23-acre site
1.3 million square feet
I-77 Megasite
1,500+ acres
9 million square feet of proposed space
Estimated 2,000 jobs
Waterford Business Park Rock Hill
25-acre site
Two 120,000-square-foot buildings
Approximately one mile from the Hampton Inn Rock Hill
ROCK HILL’S 365-DAY SPORTS DEMAND
The Hampton Inn Rock Hill is conveniently located within 10 minutes of premier sports facilities, including Manchester Meadows Park, Rock Hill Tennis Center, Cherry Park, Rock Hill Velodrome, and the Rock Hill BMX Supercross Track, offering unparalleled access to the city's top recreational and competitive venues. The Hampton's convenient location and complementary breakfast makes the Hotel popular with young athletes and their families.
NO NEW SUPPLY
There are currently no hotels currently under construction in the Monroe/Rock Hill submarket, which should allow for increased occupancy and ADR in the coming years.
Rock Hill BMX Supercross Track
ASCENDING OPERATING PERFORMANCE / STRONG SUBMARKET TRENDS
For the year-end 2024, RevPAR for the Hampton Inn and the overall Monroe/Rock Hill submarket rose by 10.7% and 8.2%, respectively. Supported by a steady influx of new developments, the area's recession-proof "eds and meds" foundation, and proximity to numerous blue-chip employers, the Hampton Inn is well-positioned to maintain strong momentum and capture outsized growth opportunities.
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.
