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Carolina Beach & Kure Beach 115 Key Portfolio – Image Credit HVS
HVS Brokerage & Advisory offers an exclusive opportunity to acquire a portfolio of four recently renovated properties in Carolina Beach and Kure Beach in North Carolina. The portfolio includes 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, totaling 115 keys. The portfolio features 96 oceanfront rooms, with three properties located along the beach, and one property just two blocks from the beach.
The properties have been well-maintained by current ownership, with proactive investment in cosmetic and mechanical enhancements. Modernized systems and mechanical upgrades have optimized energy efficiency and reduced long-term maintenance costs. These regular renovations have maintained the properties’ appeal, contributing to high guest satisfaction and repeat business, supporting positive reviews.
The properties present significant upside potential for a robust operator to realize portfolio growth. The two Kure Beach properties, the Admiral’s Quarters and Sand Dunes Motel, present an opportunity for operational synergies by implementing shared management, reducing costs, and optimizing revenue-management strategies to drive top-line performance.
Moreover, the Starlite Inn and the Beach House Inn & Suites have rooms currently used for management and storage, which could be converted into rentable rooms, further increasing total revenue potential.
Portfolio revenue is projected to increase by 8.0% in 2025, driven by strategic rate increases owing to recent property updates and the ongoing demand for beachfront accommodations. Upon stabilization (2027/28), the portfolio is estimated to earn over $4 million in gross room revenue. Any further property upgrades by a new buyer will only benefit the portfolio and its future success.
Carolina Beach and Kure Beach are characterized by limited developable oceanfront land and strict zoning regulations, creating a high-barriers-to-entry market. The properties benefit from irreplaceable locations, with a highly desirable beachfront presence providing a significant competitive advantage in their respective submarkets.
Since their acquisition in 2022/23, the portfolio has maintained an annual average revenue level exceeding $3.3 million, demonstrating consistent demand and operational stability. The portfolio commands a blended average daily rate (ADR) of $225 during peak season (June–August), providing a stable foundation for strong revenue performance.
The properties are positioned strategically, with the Sand Dunes Motel and Admiral’s Quarters Kure Beach situated directly on the beaches of Pleasure Island. The Beach House Inn & Suites benefits from its beachfront location. The Starlite Inn, the only non-beachfront asset in this portfolio, is positioned on a sought-after street corner in Carolina Beach, benefiting from high visibility and walkability.
Inquire at HVS.
