About the project
The common area and existing 138 rooms will be completely renovated and an additional two stories, 12 suites, restaurant, 24/7 grab and go market, meeting space and elevator will be added to enhance the property’s layout. Both leisure and business travelers can find a repsite in the hotel set to be a “home away from home,” offering amenities such as a landscaped outdoor space with communal seating, state-of-the-art fitness room, a swimming pool and free Wi-Fi.
The new hotel will be a Wyndham Garden branded property, the flagship upper midscale hotel brand in the Wyndham Hotels Group portfolio. Wyndham is currently the largest hotel franchisor in the world, with over 20 brands in its portfolio with a reputation for functional and affordable accommodations meeting the needs of the personable “everyday traveler.”
The foundation for investing in the Project has been carefully curated through thorough research that underscored the convenience and relevancy of the hotel.
As for internal infrastructure, Ernie Catanzaro Founder & CEO of EJC HOTELS is a well-known respected hotelier who does not accept mediocre performance and is constantly striving for perfection in his over three decades of experience in the hotel business. He started his career with Marriott Hotels and during that time conducted a college internship for the Dan Hotel Company in Israel. Throughout his career, Mr. Catanzaro participated or managed in over 100 hotel and resort takeovers in over twenty-five states where he held senior positions with HEI Hotels, Dow Hotel Company, and Blue Sky Hospitality Solutions. In addition, Mr. Catanzaro was a crucial part of rolling out a new four diamond independent hotel brand in key markets for the Melrose Hotel Company. Mr. Catanzaro surrounds himself with a Senior Leadership Team who are entrepreneurial, transparent, proactive, and delivers high performance results. They are experts in managing branded or independent full-service hotels, resorts, mid-scale hotel brands and creating profitable food and beverage outlets.
The total Project cost is estimated at 13.25 million, including the purchase of the property and hard and soft construction costs. The Project will be capitalized by approximately 1.25 million in developer equity and a 3.0 million senior loan. The balance of the capital stack – a total of $9.0 million – will be raised from EB-5 investors.
A total of 10 investors (each with a capital contribution of $900,000) will invest directly in the New Commercial Enterprise, which in turn will loan the totality of investment to the Job Creating Enterprise to fund the Project’s development and operations.
The economic impacts of the Project were also analyzed by Barnhart Economic Services using a regional economic model. According to the analysis, total applicable employment impacts of the Project were estimated at 173 jobs. This includes 66 jobs for development/construction activities and 107 jobs for ongoing operations. The Project is also located in a Targeted Employment Area (TEA), and therefore qualifies for the lower investment amount of $900,000 per investor.
Based on total job creation and its location in a TEA, the Project can support up to 17 investors and raise up to $15.3million in EB-5 investor capital. Thus, the Project will create 50% more than the required jobs needed to support the number of investors in the New Commercial Enterprise’s Offering.
The Project is overall set to reach a stabilized occupancy rates of 69% by the third year, with an average daily rate (ADR) of $109.67. Net operating income is estimated to reach nearly 1.1 million in the first year of operations and will rise to an estimated $1.34 million at stabilization. The Project’s performance, paired with effective financial and operational management, will yield a healthy stabilized net operating income of 23% or better.
Such success is ultimately pinnacle of the convenience in location and the accessibility and comfortability in price for those wishing to explore the region without heavy spending on accommodations. In 2018-2019, 5.56 million people visited the Finger Lakes region, accounting for 17% of visitor spending in the upstate regions of New York. Of this, Monroe County was the most popular destination in the Finger Lakes and accounted for approximately 34% of traveler at more than $1.07 billion.
By investing in the project, patrons will find they have not only solidified their EB-5 visa, but also are a part of the booming tourism industry that COVID-19 has exposed to be one of the essential components to all our lives, something we cherish and hold on to when navigating our way through the world.