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Hotel-Motel

Quality Inn & Suites Goshen

1930 Lincolnway E, Goshen, IN 46526

Listing Price: $4,000,000

Cap Rate
4.18%
Number of Rooms
90
RevPAR
$36
Price/Room
$44,444
RRM
3.45
Year Built
1989

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 Quality Inn & Suites in Goshen, Indiana (‘Hotel’ or ‘Property’). The Choice Hotels International-branded Hotel is offered at $4,000,000 or $44,444 per key. The Quality Inn & Suites is a 90-room, limited-service, midscale Hotel established at 1930 Lincolnway East. The Property is approximately 48,667 square feet across two floors and maintains amenities including an indoor and outdoor pool, exercise room, business center, guest laundry facilities, and 1,056 square feet of meeting and event space. Goshen is situated in the north region of Indiana, 140 miles north of Indianapolis, Indiana and 125 miles east of Chicago, Illinois. The city is the county seat of Elkhart County and is included in the Elkhart-Goshen metropolitan statistical area (MSA). 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 manufacturing, health care, education, and retail trade. Goshen’s economy centers around the automotive and recreational vehicle business with automotive manufacturers like Benteler Automotive Group (1.9 miles), Dutchmen Manufacturing Incorporated (0.6 miles), Forest Rivers Incorporated (1.4 miles), and Keystone RV (1.7 miles). Other major employers responsible for a significant portion of the workforce like Goshen Hospital Association (2.2 miles), Liberty Homes Incorporated (1.5 miles), Independent Protection Company (2.0 miles), and DMI Holding Corporation (0.6 miles) help bring additional revenue to the Hotel through an increase in transient business. Leisure demand drivers for the city include Concord Mall (9.8 miles), Elkhart County Fairgrounds (2.8 miles), Goshen College (2.0 miles), Elkhart Courthouse (3.0 miles), and Shanklin Park Recreation Center (2.6 miles). The Hotel further benefits from both Goshen Municipal Airport (3.9 miles) and Elkhart Municipal Airport (16.0 miles). The limited-service Hotel recorded room revenues of over $1.16 million in 2021, with an occupancy percentage of 47.7 percent, an average daily rate (ADR) of $75.96, and RevPAR of $36.23. Compared to the STR-defined competitive set, the Property’s RevPAR is sitting at a 69 percent penetration, representing a value-add opportunity to acquire this asset and increase market penetration through strategic revenue management strategies. Additionally, a deeper look at departmental expenses will show current inefficiencies in operations with the opportunity to implement cost controls initiatives to bolster net operating income.

Investment Highlights

  • Two-Story, 90-Room, Limited-Service Hotel
  • Priced Below Replacement Costs at $44,444 per Key
  • Positioned Off State Highway 33, In a Strong Commercial Hub with Major Automotive Manufacturers Such as Benteler Automotive Group, Dutchmen Manufacturing Inc., Forest Rivers Inc, and Keystone RV
  • Opportunity to Implement Strategic Revenue Management Strategies to Increase Rooms Sold and Net-Operating Income Flow Through

Exclusively Listed By

Broker of Record

  • Josh Caruana

    First Vice President/District Manager

    (317) 218-5300

    License(s) IN: RB14034355

    Indiana

Hotel-Motel

Quality Inn & Suites Goshen

Listing Price: $4,000,000

Cap Rate
4.18%
Number of Rooms
90
RevPAR
$36
Price/Room
$44,444
RRM
3.45
Year Built
1989

Investment Highlights

  • Two-Story, 90-Room, Limited-Service Hotel
  • Priced Below Replacement Costs at $44,444 per Key
  • Positioned Off State Highway 33, In a Strong Commercial Hub with Major Automotive Manufacturers Such as Benteler Automotive Group, Dutchmen Manufacturing Inc., Forest Rivers Inc, and Keystone RV
  • Opportunity to Implement Strategic Revenue Management Strategies to Increase Rooms Sold and Net-Operating Income Flow Through

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 Quality Inn & Suites in Goshen, Indiana (‘Hotel’ or ‘Property’). The Choice Hotels International-branded Hotel is offered at $4,000,000 or $44,444 per key. The Quality Inn & Suites is a 90-room, limited-service, midscale Hotel established at 1930 Lincolnway East. The Property is approximately 48,667 square feet across two floors and maintains amenities including an indoor and outdoor pool, exercise room, business center, guest laundry facilities, and 1,056 square feet of meeting and event space. Goshen is situated in the north region of Indiana, 140 miles north of Indianapolis, Indiana and 125 miles east of Chicago, Illinois. The city is the county seat of Elkhart County and is included in the Elkhart-Goshen metropolitan statistical area (MSA). 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 manufacturing, health care, education, and retail trade. Goshen’s economy centers around the automotive and recreational vehicle business with automotive manufacturers like Benteler Automotive Group (1.9 miles), Dutchmen Manufacturing Incorporated (0.6 miles), Forest Rivers Incorporated (1.4 miles), and Keystone RV (1.7 miles). Other major employers responsible for a significant portion of the workforce like Goshen Hospital Association (2.2 miles), Liberty Homes Incorporated (1.5 miles), Independent Protection Company (2.0 miles), and DMI Holding Corporation (0.6 miles) help bring additional revenue to the Hotel through an increase in transient business. Leisure demand drivers for the city include Concord Mall (9.8 miles), Elkhart County Fairgrounds (2.8 miles), Goshen College (2.0 miles), Elkhart Courthouse (3.0 miles), and Shanklin Park Recreation Center (2.6 miles). The Hotel further benefits from both Goshen Municipal Airport (3.9 miles) and Elkhart Municipal Airport (16.0 miles). The limited-service Hotel recorded room revenues of over $1.16 million in 2021, with an occupancy percentage of 47.7 percent, an average daily rate (ADR) of $75.96, and RevPAR of $36.23. Compared to the STR-defined competitive set, the Property’s RevPAR is sitting at a 69 percent penetration, representing a value-add opportunity to acquire this asset and increase market penetration through strategic revenue management strategies. Additionally, a deeper look at departmental expenses will show current inefficiencies in operations with the opportunity to implement cost controls initiatives to bolster net operating income.

Exclusively Listed By

Broker of Record

  • Josh Caruana

    First Vice President/District Manager

    (317) 218-5300

    License(s): IN: RB14034355

    Indiana

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