Hodges Ward Elliott is pleased to offer for sale, fee simple ownership interest in The Woodspring Suites Jackson I-40 in Jackson, Tennessee. The 122-room prototype hotel is currently under construction with an anticipated delivery date of June 12, 2025. This offering represents the chance to acquire a brand-new economy extended-stay hotel at Certificate of Occupancy (“CO”), at an attractive basis.
| Address | |
| YEAR Built | 2024/2025 |
| Rooms | 122 |
| AMENITIES |
|
| STORIES | 4 |
| Gross SF | 51,944 |
| Parking | 115 Surface Spaces |
| Brand | WoodSpring Suites (Choice) |
Investment Highlights
New Build Economy Extended Stay Hotel
Perhaps the fastest growing segment of the lodging market, economy extended stay hotels offer guests the convenience of a hotel and the affordability of an apartment, providing maximum value to customers. For owners, the longer length of stay, limited staffing and limited services/amenities provides a cost-efficient model with outsized profitability margins.
Economy extended stay hotels typically appeal to guests looking 7 days to 6 month stays. These hotels offer excellent value to the customer, particularly relative to nightly stay hotels. For the owner, these properties yield high operating margins in an environment where expenses are rising. In addition, the affordability and flexibility of economy extended stay hotels means they perform well in both good and bad economies thanks to the value offered the customer.
Additional Benefits of Extended Stay Hotels
Extended stay hotels have proven themselves reliable and more resilient than any other hospitality asset during the most recent recessionary periods, the Dot-Com Bubble (2000 – 2002), the Great Recession (2008 – 2010), and the COVID-19 pandemic (2020 – 2022). During each recessionary period, extended stay hotels experienced less decline in occupancy than the overall hotel industry. The general stability of extended stay hotels during times of economic distress is due in large part to non-discretionary stay occasions and a residential base of guests.
Demand consistently exceeds supply, and over the previous 25 years, extended stay demand has never declined on an annual basis other than 2020 when the industry was impacted by COVID.
Ideal Location in Jackson
Jackson, Tennessee is situated along I-40 between Memphis and Nashville. This location makes the city an ideal spoke this southeast’s development and logistic wheel. Specifically, the Hotel is located just south of the interstate at the Christmasville Road / Dr. FE Wright Drive exit. Nearby demand drivers include the West Tennessee Sportsplex (0.8 miles), The Ballpark at Jackson (1.2 miles), and Toyota Boshoku Tennessee (1.8 miles) Additionally, in December 2024, Great Wolf Lodge purchased 36 acres across Ridgecrest Road from the WoodSpring Suites, where they have already begun site work for their newest property.
No Development or CapEx Risk
In an environment of rising construction costs and difficult to procure construction financing, buying a hotel at CO removes development risk for the purchaser. Further, buying a turnkey property means a new owners capital expenditures should be minimal for the next several years.
Unencumbered Asset
The fee-simple Hotel is being offered unencumbered of debt and management and inclusive of a long-term license with WoodSpring Suites (Choice).
WoodSpring Suites Brand
WoodSpring Suites are all new construction, value-engineered hotels with developers adhering to strict prototype and design specifications and an operating model that embodies WoodSpring’s promise of “It’s Simple. Done Better.” Every suite includes a well-designed kitchen, seating area, and a free premium movie channel. Guests have access to free high-speed internet, 24/7 laundry facilities, and bi-weekly housekeeping. As of year-end, there were 256 Woodspring Suites hotels totaling 30,846 rooms.
Specific features and efficiencies of the brand include:
Wood-like vinyl floors in rooms and lobby areas create an upscale look and feel for guests, while also providing durability and easy maintenance for operators.
Adjacent washers and dryers in the back of the house facilitate an easier transfer of laundry between machines, increasing productivity.
Wall-hung furniture makes the rooms faster and easier to clean, one of many features that contribute to a low overall maintenance cost.
Operational efficiencies enable a much lighter staffing model than in typical hotels, usually between 6 and 8 full time equivalent employees.
