OFFERING MEMORANDUM HAWAII INVESTMENT OPPORTUNITY FOR SALE :: FEE SIMPLE 11-3968 Hale Ohia Road Volcano Village, Hawaii Tim Lee RA (RS-69814) Managing Director Investment Sales 808 369 1139 (Direct) 808 551 5085 (Cell) tl@avalonhi.com
DISCLAIMER This presentation has been prepared by Avalon Commercial LLC ( Avalon ) on the basis of information obtained from Avalon s client (the Company ) and other public sources, as of the specified date. Avalon nor the Company undertake any duty or obligation to update the information. Neither Avalon nor the Company makes or gives any representation, warranty or guarantee, whether express or implied, that the information contained in this presentation or otherwise supplied to the recipient, at any time by or on behalf of Avalon or the Company whether in writing or not, relating to the offering discussed herein is complete or accurate or that it has been or will be audited or independently verified, or that reasonable care has been taken in compiling, preparing or furnishing the information. This presentation provides a guide only and it is not intended to be exhaustive and, in particular, does not contain disclosure of any of the risks associated with the opportunity. This presentation is not to be construed as investment, tax or legal advice in relation to the relevant subject matter. You must seek your own legal or other professional advice. This presentation may contain statements that are forward-looking statements. These forward-looking statements, which are subject to numerous risks, uncertainties and assumptions, include projections of future financial performance, anticipated growth strategies and anticipated trends in the business. These statements are only predictions based on current expectations and projections about future events, subject to change due to actual results, level of activity, performance or achievements. Any estimate or forecast contained in this presentation is not a promise or representation by Avalon or the Company as to future matters and nothing contained in the information should be relied upon as a representation as to future matters. The projections based on financial and other pro forma data set forth in this presentation were not prepared with a view toward compliance with U.S. Generally Accepted Accounting Principles or any other published standards. Projections and other pro forma data are derived from estimates, as of the date of this presentation, based on certain hypothetical assumptions, which are inherently subject to significant business, economic and competitive uncertainties and contingencies. Independent estimates about the future benefits of the opportunity and pro forma data should be developed by investors before any decision is made on whether or not to invest in the opportunity and investors should not rely on the projections and pro forma data contained herein. Summaries of any documents about the opportunity discussed herein are not intended to be comprehensive or all inclusive, but rather only outline some of the provisions contained therein and are qualified in their entirety by the actual document to which they relate. This presentation does not constitute an offer or invitation to make an investment, in any form, in the opportunity discussed herein. It has been prepared to obtain indications of interest about an investment to be made which will only be made upon the basis of the negotiations and executions of full investment documentation. This is not an offer of an investment opportunity in any jurisdiction where it is prohibited or where a pre-filing or other action is required. You understand that the information is confidential and is furnished solely for the purpose of your review in connection with the opportunity discussed herein. You further understand that the information is not to be used for any other purpose or made available to any other person without the express written consent of Avalon. This offering is subject to prior placement and withdrawal, cancellation or modification without notice. Copyright 2017 Avalon Commercial LLC.
Contents Fee Simple Opportunity 2 Property Summary 4 Hawaii Visitor Statistics 5 Floor Plans 7-8
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Fee Simple Opportunity The acquisition of the Hale Ohia Cottages offers an excellent opportunity to an investor seeking to acquire a magnificent resort property near one of the most-visited attractions in Hawaii. The opportunity offers investors: A rare chance to own a gorgeous and well-kept resort property on the Big Island of Hawaii Hardly any quality competition in the area that s highly attractive to visitors year-round Entrance to a market with significant barriers against development Consistently high occupancy with a near-perfect rating on TripAdvisor Asking Price: $2.95 Million Financials available after a signed confidentiality agreement 2 11-3968 Hale Ohia Road TMKs: 3-1-1-005-019; 037; 046 Units: 13 (6 Buildings, 1 Driveway) Total Building Area: 6,118 sq. ft. Land Area: 52,513 sq. ft. Zoning: Residential Other info.: The Hale Ohia Cottages garners lots of interest from visitors all around the world, as evidenced by its Certificate of Excellence from TripAvisor that is earned by hotels, attractions and restaurants that consistently earn great reviews from travelers.
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4 Property Summary Hale Ohia Cottages Summary Great location one mile from Hawaii Volcanoes National Park entrance Future possible addon value by increasing room rates Near-perfect rating on TripAdvisor Tourism at an all-time high in Hawaii, in terms of both visitor numbers and spending The Big Island s tourism industry remains strong in terms of both visitor count and room occupancy Perfect for investor who loves the outdoors The Hale Ohia Cottages is a jewel in the vast wilderness at the edge of Hawaii Volcanoes National Park, one of the most-visited tourist attractions in Hawaii. This secluded hotel with cottages that were built in the 1930s is just minutes away from shops and restaurants. The Cottages, which consist of a main residence, guest cottages and a gardener s cottage, as well as numerous support buildings, is nestled in a botanical garden setting, and affords guests a unique view of Hawaii s storied past. Located about three miles from the world famous Halemaumau Volcano Crater and 27 miles from Hilo International Airport on the Big Island of Hawaii s southeastern side, the Cottages come with complimentary continental breakfast, free Wi-Fi, coffeemakers and minifridges, along with private bathrooms and seating areas. Some areas have stained glass windows, lava rock fireplaces and rustic exposed beams. The Cottages, which carry unique architectural designs, each have private access points.
Hawaii Visitor Statistics 5 Total Visitors 17-Aug 16-Aug % CHANGE YTD 2017 YTD 2016 % CHANGE Hawaii Island 152,550 133,561 14.2 1,196,926 1,049,969 14 Kona side 128,756 113,875 13.1 1,021,962 899,531 14 Hilo side 59,473 48,068 23.7 446,438 371,947 20 Hawaii Island only 67,072 61,086 9.8 574,468 516,564 11 (As of Q2 2017) Occupancy Occupancy Change Avg. Daily Avg. Daily Change RevPAR RevPAR Change Market 2016 (%) 2017 (%) (BPS) Rate '16 Rate '17 % '16 '17 (%) Oahu 83.6 82.7-90 $ 218.08 $ 229.09 5 $ 182.24 $ 189.35 3.9 Maui 77 77.7 70 $ 331.39 $ 362.65 9.4 $ 255.13 $ 281.82 10.5 Kauai 72.9 77.7 480 $ 252.25 $ 263.02 4.3 $ 183.93 $ 204.45 11.2 Big Island 69.4 75.4 600 $ 242.16 $ 252.69 4.4 $ 167.96 $ 190.56 13.5 State 79.2 80.1 90 $ 249.87 $ 264.98 6 $ 197.79 $ 212.34 7.4 Source: CBRE CATEGORY AND ISLAND Aug-17 Aug-16 % change YTD 2017 YTD 2016 % change TOTAL EXPENDITURES ($mil.) 1,392.4 1,312.2 6.1 11,339.2 10,446.6 8.5 Total by air 1,391.4 1,311.4 6.1 11,316.0 10,423.9 8.6 Oahu 698.7 643.5 8.6 5,150.8 4,803.5 7.2 Maui 364.8 350.6 4.0 3,210.4 3,052.2 5.2 Molokai 1.4 3.3-55.6 22.5 20.8 8.2 Lanai 5.4 10.1-46.2 53.3 54.9-2.9 Kauai 147.4 141.7 4.0 1,267.0 1,126.4 12.5 Hawaii Island 173.7 162.2 7.1 1,612.0 1,366.1 18.0
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OFFERING MEMORANDUM HAWAII INVESTMENT OPPORTUNITY FOR SALE :: FEE SIMPLE Hale Ohia Cottages Volcano Village, Hawaii Tim Lee RA (RS-69814) Managing Director Investment Sales 808 369 1139 (Direct) 808 551-5085 (Cell) tl@avalonhi.com Phone Address D: (808) 587-7770 C: (808) 551-5085 F : (808) 587-7769 Queens Court Suite 501 800 Bethel Street Honolulu, HI 96813 United States of America Email info@avalonhi.com