THE CHARLOTTE CLUB

The pandemic has changed so much of daily life, from how people go to work and school to how they shop and socialize. While some behaviors from this period will eventually fade away, COVID-19 has made an indelible mark on life—and travel—as we know it. 

Driven by Different Motivations  

Moving forward, the hotel industry will feel the impact of the ways that consumers have fundamentally changed in what they want and in how they behave and engage with brands. Instead of focusing primarily on price and quality in making purchasing decisions, these new travelers are motivated to purchase by factors including health and safety, ease and convenience, care, trust, and reputation.

The Rise of the New Leisure Traveler   

Leisure travelers with these new motivations will be a significant force driving travel demand in 2022—a marked shift that began last year after years of business travel being the staple of the global travel industry. 

New Face of the Business Traveler 

 While business travel demand will lag that of leisure travel, it is not, as some have argued, a thing of the past. This is especially true in the United States, the world’s most popular business travel destination. Business travel overall is expected to increase in 2022 compared to last year, and, according to an analysis by Kalibri Labs, by Q3 it is projected to reach 80% of 2019 figures. While a full recovery isn’t expected until 2024, global business travel is projected to increase by 14% in 2022, with the United States and China seeing the largest upswing—both are projected to grow by 30%. 

MARKETPLACE – CHARLOTTE 

SECOND-LARGEST FINANCIAL CENTER IN THE U.S. - Charlotte is home to 9 Fortune 500 company headquarters that represent the finance, energy, and manufacturing industries. Among these are Bank of America, Truist Financial, and the east coast operations of Wells Fargo making Charlotte the second-largest financial center in the U.S. Behind New York City. There are approximately 82,000 workers employed in the finance and insurance industry. 

TOURIST ATTRACTION IN THE REGION - Leisure demand proximate to the area includes the following major tourist attractions: NASCAR Headquarters & Hall of Fame, Charlotte Motor Speedway, Bank of America Stadium, Music Factory, NoDa 36th Street, Camp North and the Spectrum Center. 

STEADILY-GROWING LOCAL MARKET - The Charlotte market achieved an average annual compound population growth of 1.8% from 2015 – 2019 and is forecasted to grow 2.1% annually between 2020 and 2024. Further, household average income is forecasted to grow by 3.3% per year during the same period.

AMERICA’S TOP TECH TOWN -  ComTIA identified Charlotte, NC as the nation’s leader in tech jobs due to its quality of life for tech workers, salaries, job availability, job growth and cost of living.

HEALTHCARE HUB - The Charlotte area is a growing healthcare hub home to national and international leaders in the health care and life sciences field. Approximately, 1-in-9 workers in the area is employed in health care or life sciences.

DEMOGRAPHICS - Charlotte’s population statistics tell an important story about its labor force. The city is relatively young and educated, creating a rich talent pool for local businesses. A large percentage of the metro’s population are Millennials and Gen Z, resulting in a young and diverse median age of 37.7.

McClain Real Estate Development (“MRED”) has been embarked on ground up “Lifestyle” hotel, multi-family apartment mixed use development project in Uptown Charlotte, North Carolina. The project will consist of 283-keys full-service hotel type that is an upper upscale named Charlotte Club Hotel. The project is located on the downtown Charlotte known as Uptown. 

Some of the hotel’s amenities are Room Service, Specialty Restaurant, Rooftop Bar, Multi-Purpose Restaurant, Rooftop Pool, Meeting Rooms, Ballroom, High-Speed Wi-Fi, Gift Shop TCCShop®, TCCSpa®, bath Amenities, Fitness Center and Business Center  

Charlotte Club Hotel project is a part of the master plan for the mixed-use project. The hotel component can be a Soft Brand & Collection in the upper upscale segment, named “Charlotte Club Hotel”. Soft branding for the hotel will allow it to maintain an affiliation with this larger hospitality company. The connection with a leading hotel company allows travelers to earn and redeem points via a global loyalty program. This allows the hotel to be unique independence for this marketplace. 

EXECUTIVE SUMMARY FOR INDEPENDENT SOFT BRAND HOTELS  

Private real estate has long been recognized as a valuable component of a balanced investment portfolio. Within this sector, Independent Soft Brand Hotels are a proven long-term niche play with market resilience, strong asset appreciation as well as cash-on-cash dividend income. Real Estate values appreciate slowly over time, and private investments are less volatile than public markets. They are illiquid, but the long-term investment view is positive and has proven to be less tendency of financial variables to fluctuate around a trend during the economic cycle. Owning independent soft brand hotels across country and key destinations spreads the portfolio risk. 

THE COMPETITIVE EDGE OF INDEPENDENT & SOFT BRAND HOTELS  

Travel industry trends continue to show a steady rise in demand for experience-based luxury travel, and thus the hospitality landscape is changing, for travelers as well as investors. Investors who        once deemed flagship brands a lower-risk, higher-return are realizing that independent/boutique hotels/soft brands are appreciating assets better positioned to deliver the lifestyle-focused quality and experience that today’s traveler demands. 

THE HOTEL MARKETPLACE STUDIES &   RESOURCES  

Shifting Demographics and Consumer Demand 

Luxury consumption has shifted away from goods and towards experiences such as travel, events and gastronomy, which has been growing 5-7% faster than luxury goods. The following reports and studies offer insights in the shifting demographics and consumer demand in the hotel marketplace.  As consumer preferences evolve and as the “boutique hotel” emerges as an attractive, authentic experience for travelers, the independent (or perceived as independent) hotel is likely a product type that will continue to rise in popularity in the United States. With more hotels maintaining unique styles and marketing as independent, the option of a more flexible, short-term agreement with an independent hotel company would be expected to appeal to owners and operators in the years to come.” — HVS Fall 2019  

“The recognizable brand and comfort of a franchise hotel once served as a dependable anchor for travelers in a new and unfamiliar city, however today’s luxury traveler is digitally briefed on a new destination, and seeks design-driven, authentic experiences, not standardized familiarity, when choosing lodging. Millennial luxury travelers seek life enrichment, creativity, and rejuvenation – boutique hotels specialize in offering unique local flavor and tailored experiences. Even the larger players recognize this trend away from formulaic to distinctive.” –KATHERINE MELCHIOR-RAY, VP, HYATT HOTELS 

 “We know that for our guests, intuitive service, exquisite linens, and curated wine lists are the common denominator, not the differentiator. Time is a luxury for guests—they want to be sure that theirs is well spent...Rather than seeking value in terms of deals or discounts, they consider whether price reflects the distinctive quality, craftsmanship and service that they expect.” SKIFT “THE RISE OF LOCAL IN HOSPITALITY.”   

These 485 luxury apartments will consist of studios and 1, 2 and 3-bedroom floor plans that range from 890 Sq. ft. to 1,350 Sq. ft.  The architectural design consists of contemporary kitchens, ceiling fans and decorative glass pendant lighting.  Select apartments will feature cozy patio balconies with spectacular views and walk-in closets and secured building access. THE CHARLOTTE CLUB

apartments will be some of the most sustainable in the city, designed to U.S. Green Building/LEED® Silver Standards, featuring energy-star appliances, energy-efficient lighting and mechanical system, storm windows and doors, and high- efficiency plumbing fixtures, equipment and material.

Housing Affordability  

We will address and plan to provide to the City of Charlotte and future projects we undertake in cities around the country the need for affordable units in terms of Area Median Income (AMI) MRED start with some background on Area Median Income (AMI).  The Area Median Income (AMI) is the midpoint of a region’s income distribution – half of families in a region earn more than the median and half earn less than the median. For housing policy, income thresholds set relative to the area median income—such as 50% of the area median income—identify households eligible to live in income-restricted housing units and the affordability of housing units to low-income households.

Charlotte AMI: https://www.huduser.gov/portal/datasets/il.html - AMI information for Charlotte (Mecklenburg County)

A family of four 100% AMI is $96,300. Also, referencing that $28,250 - 30% AMI (Extremely Low Income), $47,100 - 50% AMI (Very Low Income) and $75,350 is 80% AMI (Low Income). How this generally relates to rents is that it is a general standard that tenants. should pay no more than 30% of gross income in rent and housing costs like utilities. 

So, for example - With a household at 80% AMI so a four-person family with income of $75,350 would rent let's just say a 3 bedroom so that rent would be $75,350 multiplied by 30% and then divided by 12 (months) to get to a monthly rent of around $1,883.75 This is further adjusted by utilities paid by tenant and unit/household size to note.  

Housing Charlotte Framework: 

https://charlottenc.gov/HNS/Housing/Affordable-Housing/Documents/Housing_Charlotte_Framework_Handout.pdf 

This looks positive for our project since it seems they are looking to leverage their land to build housing, want to spur development that the city doesn't finance, and they are interested in mixed use development. We highlighted if the site is close to transit and other jobs. 

Charlotte Housing Trust Fund:   

https://charlottenc.gov/HNS/Housing/Landlords/Documents/Affordable%20Housing%20Trust%20Fund%20FAQ.pdf  

https://charlottenc.gov/HNS/Housing/Landlords/Pages/HTF.aspx  

So, this is for a financing program the City of Charlotte has and we know you aren't asking for money, but this FAQ and a look at what they want to target in terms of affordability. It seems like they want to target households at 80% AMI or below and it may be a maximum in terms of what they finance. It also seems like they want 20% of units at 30% AMI or below.

THE CHARLOTTE CLUB will be center stage to a host of amenities.

Retail, offices, restaurants and live entertainment venue will create

synergy for a “live-work-play-visit” concept. This development in downtown

will enhance a more pedestrian friendly community and will include:

· 10,500 Sqft. ground level retail space 

· 110,000 Sqft. office space  

PARKING SUMMARY

There will be planned parking for 800+ vehicles to accommodate

the hotel, apartments and office/retail customers who will

patronize this location for its dining, shopping, work and live entertainment.

CC "LIVE" Objectives

Charlotte Club “LIVE” will not be your average venue. Its main goals

are to: 

1.) Create a unique lifestyle experience where entertainment and

     conviviality combines with art and culture.

2.) Increase the hotel profitability by focusing on F&B.

3.) Contribute to the artistic and cultural dynamism of the City of Charlotte.

4.) Attract elite visitors and major events.

5.) Contribute to awareness and notoriety of the Charlotte Club Hotel

    in respect of the brand’s DNA.

Night Club concept: Day & Night Experience

     1 place.1 destination. 4 experiences.

1.) CC Nice: Cocktail bar with outdoor terrace

2.) CC Good: Trendy restaurant mixing local cuisine

3.) CC Fun: Live shows, live band, dance and parties

4.) CC Own: Lounge Bar with exclusive area (VIP)

From 7pm until early morning, the most entertaining and unique 

combination of happenings with live band, fashion and spectacular

shows, DJ set and dance will take place, with the guests as part of 

the show thanks to the concept configuration design and layout, 

completed by trendy meals and cocktails! 

CONCEPT: CC "LIVE" Proposed Layout

Approximately 16,000++ SF of space to generate,

F&B, admission, room rental income, recording studio, etc. 

Seating capacity: 1,000 +/-.