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Hotel-Motel

Motel 6 Fargo North

1202 36th St S, Fargo, ND 58103

Listing Price: $2,495,000

Cap Rate
16.63%
Number of Rooms
96
RevPAR
$29
Price/Room
$25,990
RRM
2.48
Year Built
1974

Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Division is pleased to present for sale to qualified investors the Motel 6 Fargo (‘Hotel’ or ‘Property’). The G6 Hospitality-branded Hotel is offered at $2,495,000 or $25,990 per key. The Motel 6 Fargo is a 96-room, interior-corridor, economy Hotel established at 1202 36th Street, just off Interstate 29. The Property is approximately 38,100 square feet across two floors and maintains amenities including an indoor pool, guest laundry facilities, and vending machines. Fargo, North Dakota is a city located in Cass County in the eastern region of the state, 60 miles east of Valley City and 80 miles south of Grand Forks. The Motel 6 Fargo is in the heart of Fargo, near a multitude of nationally acclaimed retailers and restaurants. With the city’s major employers and popular revenue generators near the Property, this sought-after Hotel benefits from many key industries of the city which include health care and social assistance, retail trade, and accommodation and food services. Titan Machinery and American Crystal Sugar, two of the city’s largest employers located approximately four miles from the Hotel, are prime revenue drivers for the surrounding area. Other major employers responsible for a significant portion of the workforce include Bobcat Company (3.7 miles), and John Deere Electronic Solutions (4.7 miles). Revenue generators in the area, like Avalon Events Center (1.2 miles), Red River Zoo (2.2 miles), and Sanford Medical Center (3.5 miles) help bring additional revenue to the Hotel through an increase in transient business. Extra demand drivers for the city include Plains Art Museum (3.3 miles), North Dakota State University (3.8 miles), and Hector International Airport (4.8 miles). The limited-service Hotel recorded room revenues over $1 million in 2021, a significant 55 percent increase from 2019. Operationally, the Hotel maintained healthy cashflows with a pass-through net-operating income of approximately 41 percent after a four percent capital replacement reserve. Net-operating income after interest, taxes, depreciation, and amortization equates to more than $414 thousand. The Motel 6 is priced to transact at a 2.48 room revenue multiplier and 16.63 percent cap rate and will deliver favorable cash-on-cash returns.

Investment Highlights

  • Two-Story, 96-Room, Interior-Corridor Hotel within the Fargo-Moorhead MSA
  • Priced at an Attractive 2.48 Room Revenue Multiplier and 16.63 Percent Cap Rate at $25,990 per Key
  • Located in the Strong Fargo Commercial Hub with Strategic Highway Position Offering Excellent Visibility
  • Less than Five Miles from Hector International Airport and Sanford Medical Center
  • Ideal In-Place Operations with Room Revenues over $1 Million and Net-Operating Income of Over $414 Thousand or 41 Percent of Gross Revenues

Exclusively Listed By

Broker of Record

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9700

    License(s) ND: 10032

    North Dakota

Hotel-Motel

Motel 6 Fargo North

Listing Price: $2,495,000

Cap Rate
16.63%
Number of Rooms
96
RevPAR
$29
Price/Room
$25,990
RRM
2.48
Year Built
1974

Investment Highlights

  • Two-Story, 96-Room, Interior-Corridor Hotel within the Fargo-Moorhead MSA
  • Priced at an Attractive 2.48 Room Revenue Multiplier and 16.63 Percent Cap Rate at $25,990 per Key
  • Located in the Strong Fargo Commercial Hub with Strategic Highway Position Offering Excellent Visibility
  • Less than Five Miles from Hector International Airport and Sanford Medical Center
  • Ideal In-Place Operations with Room Revenues over $1 Million and Net-Operating Income of Over $414 Thousand or 41 Percent of Gross Revenues

Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Division is pleased to present for sale to qualified investors the Motel 6 Fargo (‘Hotel’ or ‘Property’). The G6 Hospitality-branded Hotel is offered at $2,495,000 or $25,990 per key. The Motel 6 Fargo is a 96-room, interior-corridor, economy Hotel established at 1202 36th Street, just off Interstate 29. The Property is approximately 38,100 square feet across two floors and maintains amenities including an indoor pool, guest laundry facilities, and vending machines. Fargo, North Dakota is a city located in Cass County in the eastern region of the state, 60 miles east of Valley City and 80 miles south of Grand Forks. The Motel 6 Fargo is in the heart of Fargo, near a multitude of nationally acclaimed retailers and restaurants. With the city’s major employers and popular revenue generators near the Property, this sought-after Hotel benefits from many key industries of the city which include health care and social assistance, retail trade, and accommodation and food services. Titan Machinery and American Crystal Sugar, two of the city’s largest employers located approximately four miles from the Hotel, are prime revenue drivers for the surrounding area. Other major employers responsible for a significant portion of the workforce include Bobcat Company (3.7 miles), and John Deere Electronic Solutions (4.7 miles). Revenue generators in the area, like Avalon Events Center (1.2 miles), Red River Zoo (2.2 miles), and Sanford Medical Center (3.5 miles) help bring additional revenue to the Hotel through an increase in transient business. Extra demand drivers for the city include Plains Art Museum (3.3 miles), North Dakota State University (3.8 miles), and Hector International Airport (4.8 miles). The limited-service Hotel recorded room revenues over $1 million in 2021, a significant 55 percent increase from 2019. Operationally, the Hotel maintained healthy cashflows with a pass-through net-operating income of approximately 41 percent after a four percent capital replacement reserve. Net-operating income after interest, taxes, depreciation, and amortization equates to more than $414 thousand. The Motel 6 is priced to transact at a 2.48 room revenue multiplier and 16.63 percent cap rate and will deliver favorable cash-on-cash returns.

Exclusively Listed By

Broker of Record

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9700

    License(s): ND: 10032

    North Dakota

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