The Resort & Conference Center at Hyannis, Hyannis, MA

The Finch Group acquired the distressed Four Points by Sheraton, Hyannis, Massachusetts on November 19, 2007 directly from Starwood Hotels & Resorts for $13,563,300 and immediately instituted an approximately $11,000,000 capital improvement program. It is anticipated that a substantial majority of the improvements will be completed by the time the hotel opens for next season, April 1, 2008. The Starwood/Sheraton affiliation was removed upon acquisition and TFG renamed the Property “The Resort and Conference Center at Hyannis.” The Property is a 232-room full service hotel with approximately 28,000 square feet of meeting space, making it the second largest, and one of only two sizeable group-meeting hotels on Cape Cod.

The largest and historically most dominant group meeting facility on Cape Cod is the 266-room, 30,000 square feet of conference space Sea Crest Oceanfront Resort and Conference Center, Falmouth, Massachusetts. TFG has operated the Sea Crest for the past 16 years, and by controlling both facilities, will be able to control the Cape Cod group meeting market. TFG plans on investing between $15,000,000 and $17,000,000 after the 2008 season to significantly upgrade the Sea Crest to a higher-rated, higher-priced property. Both properties have historically performed well as head on competitors, but, by differentiating the two properties and controlling the Cape Cod group meeting business, TFG believes the market can be segmented, benefiting both hotels. This market segmentation combined with a total renovation of the Hyannis property from its current poor condition should allow rates to dramatically increase from the Four Points current 365 day average daily rate of approximately $115 to $154 in the first stabilized year, projected to be 2010.

The historic operations of the distressed Four Points, Hyannis generated (according to Starwood Hotels), before FF&E reserve, $1,169,525 for Calendar 2006. TFG conservatively projects NOI will grow to $1,794,832 for the nine operating months in 2008 after the renovation is complete. TFG has estimated the 2008 nine month ADR at $145, as compared to the full year 2006 Four Points ADR of $116. The estimated occupancy rate of 56% for the period April to December 2008 approximates the Four Points occupancy for the same nine months in 2006.

The projected operating results assume the Resort is operated as a 232-room primarily group meeting facility. Clearly, during the summer season (late June through Labor Day with a continuation until Columbus Day), the property will receive significant support from social or transient guests. It is TFG’s intent to better utilize the 53-acre site by seeking zoning approval for 80 -110 units of interval timeshare units, an indoor water park, and some form of additional for-sale housing as permitted by zoning and density requirements.  Indoor Water Parks have historically been very successful in destination resort areas and should significantly increase rate and occupancy, as well as increasing occupancy in the shoulder and off seasons. It is anticipated that the rezoning through the Cape Cod Commission will take 18 months.
In the interim, TFG will continue to build on the already sizable existing group business at The Resort and Conference Center at Hyannis.

For More Information:

Please visit the Resort and Conference Center at Hyannis web site