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Hotel-Motel

Best Western Plus Warsaw

3825 Lake City Hwy, Warsaw, IN 46580

Listing Price: $4,250,000

Cap Rate
1.00%
Number of Rooms
76
RevPAR
$20
Price/Room
$55,921
RRM
8.38
Year Built
1998

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 Best Western Plus Warsaw (‘Hotel’ or ‘Property’). The Best Western-branded Hotel is offered at $4,250,000 or $55,921 per key. The Best Western Plus Warsaw is a 76-room, upper-midscale Hotel established at 3825 Lake City Highway. The Property is approximately 47,085 square feet across three floors and has various amenities including an indoor pool, fitness center, business center, and vending machines. Warsaw, Indiana is a city located in Kosciusko County in the northern region of the state, 40 miles west of Wayne, IN and 125 miles east of Chicago, IL. The Best Western Plus is located off Highway 30, 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 manufacturing, retail, and health care. Warsaw has been nicknamed the “Orthopedic Capital of the World” and is home to orthopedic device manufacturers such as DePuy Manufacturing Company (1.2 miles), Zimmer Biomet (3.4 miles), and Biomet Inc. (4.3 miles). Other major employers responsible for a significant portion of the workforce like Da-Lite Screen Company (5.1 miles), LSC Communications (6.4 miles), Dalton Corporation (2.4 miles), ABC Industries (2.0 miles), and Penguin Point Restaurant Group (0.5 miles) help bring additional revenue to the Hotel through an increase in transient business. Extra demand drivers for the city include Winona Lake (1.8 miles), Wagon Wheel Center (1.6 miles), Barbee Lake (9.1 miles), and Grace College (1.9 miles). The limited-service Hotel recorded room revenues of over $500 thousand in 2021, with an occupancy percentage of 25 percent, an average daily rate (ADR) of $79.58, and RevPAR of $20.05. Compared to the STR-defined competitive set, the Property’s RevPAR is sitting at a 44 percent penetration, representing a value-add opportunity to acquire this asset at a discount and implement strategic revenue management strategies. Furthermore, an experienced owner-operator should expect a significant increase in RevPAR as room demand returns to the market. Not only will this increase rooms sold and revenues, but also assist in garnering a healthy net operating income flow through.

Investment Highlights

  • Three-Story, 76-Room, Limited-Service Hotel
  • Priced Below Replacement Costs at $55,921 Per Key
  • Positioned Off State Highway 30, In a Strong Commercial Hub with Major Orthopedic Device Manufacturers Such as DePuy Manufacturing Company, Zimmer Biomet, and Biomet Inc.
  • 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

Best Western Plus Warsaw

Listing Price: $4,250,000

Cap Rate
1.00%
Number of Rooms
76
RevPAR
$20
Price/Room
$55,921
RRM
8.38
Year Built
1998

Investment Highlights

  • Three-Story, 76-Room, Limited-Service Hotel
  • Priced Below Replacement Costs at $55,921 Per Key
  • Positioned Off State Highway 30, In a Strong Commercial Hub with Major Orthopedic Device Manufacturers Such as DePuy Manufacturing Company, Zimmer Biomet, and Biomet Inc.
  • 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 Best Western Plus Warsaw (‘Hotel’ or ‘Property’). The Best Western-branded Hotel is offered at $4,250,000 or $55,921 per key. The Best Western Plus Warsaw is a 76-room, upper-midscale Hotel established at 3825 Lake City Highway. The Property is approximately 47,085 square feet across three floors and has various amenities including an indoor pool, fitness center, business center, and vending machines. Warsaw, Indiana is a city located in Kosciusko County in the northern region of the state, 40 miles west of Wayne, IN and 125 miles east of Chicago, IL. The Best Western Plus is located off Highway 30, 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 manufacturing, retail, and health care. Warsaw has been nicknamed the “Orthopedic Capital of the World” and is home to orthopedic device manufacturers such as DePuy Manufacturing Company (1.2 miles), Zimmer Biomet (3.4 miles), and Biomet Inc. (4.3 miles). Other major employers responsible for a significant portion of the workforce like Da-Lite Screen Company (5.1 miles), LSC Communications (6.4 miles), Dalton Corporation (2.4 miles), ABC Industries (2.0 miles), and Penguin Point Restaurant Group (0.5 miles) help bring additional revenue to the Hotel through an increase in transient business. Extra demand drivers for the city include Winona Lake (1.8 miles), Wagon Wheel Center (1.6 miles), Barbee Lake (9.1 miles), and Grace College (1.9 miles). The limited-service Hotel recorded room revenues of over $500 thousand in 2021, with an occupancy percentage of 25 percent, an average daily rate (ADR) of $79.58, and RevPAR of $20.05. Compared to the STR-defined competitive set, the Property’s RevPAR is sitting at a 44 percent penetration, representing a value-add opportunity to acquire this asset at a discount and implement strategic revenue management strategies. Furthermore, an experienced owner-operator should expect a significant increase in RevPAR as room demand returns to the market. Not only will this increase rooms sold and revenues, but also assist in garnering a healthy 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

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