115 Essential Portfolio- Image Credit HVS Carolina Beach & Kure Beach
Carolina Beach and Kure Beach, North Carolina, are both offering an exclusive opportunity to purchase four late renovated properties. The collection includes 115 tips, including the 19-key Starlite Inn Carolina Beach, 21-key Beach House Inn &, Suites Carolina Beach, 38-key Sand Dunes Motel Kure Beach, and 37-key Admiral’s Quarters Kure Beach. Three properties along the beach, three properties just two blocks away, and one house only two blocks away from the beach make up the portfolio’s 96 oceanfront rooms. Current owners have kept the qualities well-maintained, making strategic investments in mechanical and cosmetic improvements. Modified equipment and mechanical improvements have increased energy efficiency and decreased maintenance costs over the long term. These ongoing renovations have kept the appeal of the property intact, resulting in great guest satisfaction and repeat business, as well as favorable reviews. For a strong operator to realize portfolio growth, the properties have a substantial upside potential. By implementing shared management, lowering costs, and optimizing revenue-management methods to generate top-line performance, the Admiral’s Quarters and Sand Dunes Motel offer an opportunity for functional synergies. Additionally, there are rooms at the Starlite Inn and the Beach House Inn & Suites that are now being used for management and storage and could be converted into purchasable rooms, increasing the potential for total income. Due to recent house updates and the persistent need for seaside accommodations, collection revenue is expected to increase by 8.0 % in 2025. The portfolio is estimated to generate over$ 4 million in gross room revenue upon stabilization ( 2027/28 ). Any additional home improvements by a potential customer will only benefit the profile and its growth in the future. Due to limited development potential on the beach and stringent zoning laws, Carolina Beach and Kure Beach have a high barrier-to-entry market. The properties gain from unreplaceable locations, with a very attractive seaside presence giving them a significant advantage in their respective submarkets. Since their purchase in 2022/23, the investment has maintained a monthly average income levels of$ 3.3 million, demonstrating regular need and operational security. In the summer months ( June through August ), the portfolio commands a blended average daily rate ( ADR) of$ 225, which provides a stable foundation for robust revenue growth. The components are positioned effectively, with Admiral’s Quarters Kure Beach and Sand Dunes Motel both situated close to Pleasure Island’s beaches. The Beach House Inn & Suites advantages from its proximity to the ocean. The Starlite Inn, the single non-beachfront property in this collection, is situated on a coveted road corner in Carolina Beach, which benefits from great visibility and pedestrians. Request an inquiry at HVS.
