DULLES AIRPORT HERNDON, VA
Hodges Ward Elliott is pleased to present the exceptional opportunity to acquire the fee simple interest in the 187-key Courtyard Dulles Airport Herndon (the “Hotel” or “Property”). The Hotel is strategically located less than 5 minutes from Washington Dulles International Airport, offering a complimentary 24-hour airport shuttle for easy transfers. It sits near the DC Metro Silver Line Innovation Center Station, making travel to Washington, D.C. convenient for guests. Located at the gateway to the Dulles Technology Corridor, the Hotel is proximate to major corporations like Amazon, Boeing and IBM. Amenities include modern guest rooms, a fitness center, an on-site restaurant, free Wi-Fi, and flexible meeting spaces, making it a comfortable choice for both business and leisure travelers.
| Address: | |
| STORIES: | 6 |
| Rooms: | 187 |
| Year Opened | Renovated: | 2009 | 2018 |
| Submarket: | Dulles Airport Area |
| Market: | Washington, D.C. |
| Class: | Upscale |
| Zoning: | PDC |
| Lot Area: | 3.30 AC | 143,876 SF |
| Gross Building Area: | 90,920 SF |
| F&B Outlets: |
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| MEETING SPACE: | 2,504 SF |
| OTHER AMENITIES: |
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| Parking: |
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| Interest Conveyed: | Fee Simple |
| Affiliation: | Marriott International |
| MANAGEMENT: | Crestline Hotels & Resorts (Unencumbered) |
| Labor: | Non-Union |
Investment Highlights
Institutionally Maintained Asset
The Hotel received a transformational renovation to convert the Hotel from a Sheraton to a Courtyard in 2019. The ~$5.4-million ($28,826 per key) renovation addressed guest room upgrades and re-envisioned the public spaces, including full room, meeting space, and lobby upgrades.
Robust Historical and In-Place Cashflow, with Additional Upside
The Hotel has consistently grown its cash flow coming out of the COVID-19 pandemic. With a thoughtful mid-cycle renovation, the Hotel should be able to push rate even further while maintaining the proven occupancy. The Hotel’s full service Marriott affiliation, in addition to its superior airport location and amenities, has allowed it to consistently capture local demand and outperform its competitive set, with an average RevPAR penetration of 116% since 2019. Given the history of strong performance, the Property checks the box for the best available financing options.
Industry Leading Distribution Platform
Marriott International is a leading global hospitality company, spanning the lodging sector from luxury and full-service hotels and resorts to extended-stay suites and focused service hotels for nearly 100 years. The strength of Marriott’s reservation system delivery, brand-name recognition, Marriott Bonvoy loyalty program, corporate sales effort, and training, as well as product consistency among its brands, makes Marriott the preeminent lodging company in terms of customer loyalty and consumer recognition.
Market Poised for Long-Term Growth
Located directly adjacent to Dulles International Airport (IAD) and regarded as the “Silicon Valley of the East,” the Dulles Airport Area Submarket has experienced robust growth in recent history. Home to companies such as AEM Corporation, Comcast, Honeywell, and Verizon Business, along with a profound presence of Google and Amazon Web Services, the Hotel is at the epicenter of new development and innovation.
IAD currently services more than 40 airlines and reached 27.3 million annual passengers in 2024, ranking as the 11th best airport in the world by AirHelp . In response to the sustained and growing demand the new Tier-2 Concourse East expansion was announced in October 2023. The $580 million project is currently underway and will add 400,000 SF of new concourse space, replacing exterior Concourse A gates. Expected to become operational in 2026, the new concourse will have 14 gates, seven of which will accommodate international flights connected through the underground aerotrain system.
Silver Line Metro Extension
In addition to the redevelopment increasing IAD’s capacity, public transportation is experiencing outsized investment. The new state-of-the-art Innovation Center Station, part of the 11.5-mile Silver Line Metro extension on the Metrorail Network, was completed in Q4 2022. Positioned within a 10-minute walk to the station, the extension provides direct access to the Airport and all of Washington, D.C. With 420,000 people living within five miles of the new stations, the Silver Line Extension improves mobility and provides greater access to jobs, entertainment, and shopping destinations within the submarket, imparting a focus on new residential and commercial development.
Clean Investment Opportunity with Maximum Flexibility
The non-union, fee-simple Hotel is being offered unencumbered of management and debt, providing maximum optionality for a new investor.
Ability to Acquire Below Replacement Cost
Based upon price guidance and PIP costs, a new investor will be able to acquire the Hotel well below replacement cost.
