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Hotel-Motel

Ramada by Wyndham Barstow

1511 E Main St, Barstow, CA 92311

Listing Price: $7,500,000

Cap Rate
9.64%
Number of Rooms
148
RevPAR
$42
Price/Room
$50,676
RRM
3.28
Year Built
1985

Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Division is pleased to present for sale to quali?ed investors the Ramada Barstow (‘Hotel’ or ‘Property’). The Wyndham-branded Hotel is offered at $7,500,000 or $50,676 per key. The Ramada Barstow is a 148-room, midscale Hotel established at 1511 East Main Street, just off the intersection of Interstate 15, Interstate 40, and Main Street. The Property is approximately 80,885 square feet across three ?oors and maintains amenities including 2,200 square feet of meeting and event space, an outdoor pool, a business center, and guest laundry services. Barstow, California is a city located in San Bernardino County in the Mojave Desert, about 115 miles east of Los Angeles, CA and 150 miles southwest of Las Vegas, NV. The Ramada Barstow is located off Interstate 15, 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 bene?ts from many key industries of the city which include military, retail, and health care. Marine Corps Logistics Base and Raytheon Tech Services, two of the city’s largest employers, located approximately 7.8 miles and 1.2 miles from the Hotel, are prime revenue drivers for the surrounding area. Other major employers responsible for a signi?cant portion of the workforce include Fort Irwin National Training Center, BNSF Railroad, and Barstow Community Hospital. Revenue generators in the area, like the Outlets at Barstow, Route 66 Mother Road Museum, Mojave National Preserve, and the Western American Railroad Museum help bring additional revenue to the Hotel through an increase in transient business. The limited-service Hotel recorded room revenues of over $2.28 million in 2021, a signi?cant 14 percent increase from 2019. Operationally, the Hotel maintained healthy cash ?ow with a pass-through net operating income of approximately 31.6 percent after a 4 percent capital replacement reserve. Net operating income after interest, taxes, depreciation, and amortization equates to more than $722.9 thousand. An experienced owner-operator can expect to achieve a 20.72 percent cash-on-cash return in year one and a 36.01 percent overall ?ve-year IRR.

Investment Highlights

  • Three-Story, 148-Room, Limited-Service Hotel Situated Between Los Angeles, California, and Las Vegas, Nevada
  • Priced Below Replacement Costs at $50,676 Per Key | 3.28 Room Revenue Multiplier and 9.64 Percent Cap Rate
  • Nearby Business Demand Generators Include Marine Corps Logistic Base, Raytheon Tech Services, Fort Irwin National Training Center, BNSF Railroad, and Barstow Community Hospital
  • Ideal In-Place Operations with Room Revenues over $2.28 Million and Net Operating Income of Over $722.9 Thousand or 31.6 Percent of Gross Revenues

Exclusively Listed By

Broker of Record

  • Jim Markel

    First Vice President/Regional Manager

    (818) 212-2700

    License(s) CA: 01253407

    California

Hotel-Motel

Ramada by Wyndham Barstow

Listing Price: $7,500,000

Cap Rate
9.64%
Number of Rooms
148
RevPAR
$42
Price/Room
$50,676
RRM
3.28
Year Built
1985

Investment Highlights

  • Three-Story, 148-Room, Limited-Service Hotel Situated Between Los Angeles, California, and Las Vegas, Nevada
  • Priced Below Replacement Costs at $50,676 Per Key | 3.28 Room Revenue Multiplier and 9.64 Percent Cap Rate
  • Nearby Business Demand Generators Include Marine Corps Logistic Base, Raytheon Tech Services, Fort Irwin National Training Center, BNSF Railroad, and Barstow Community Hospital
  • Ideal In-Place Operations with Room Revenues over $2.28 Million and Net Operating Income of Over $722.9 Thousand or 31.6 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 quali?ed investors the Ramada Barstow (‘Hotel’ or ‘Property’). The Wyndham-branded Hotel is offered at $7,500,000 or $50,676 per key. The Ramada Barstow is a 148-room, midscale Hotel established at 1511 East Main Street, just off the intersection of Interstate 15, Interstate 40, and Main Street. The Property is approximately 80,885 square feet across three ?oors and maintains amenities including 2,200 square feet of meeting and event space, an outdoor pool, a business center, and guest laundry services. Barstow, California is a city located in San Bernardino County in the Mojave Desert, about 115 miles east of Los Angeles, CA and 150 miles southwest of Las Vegas, NV. The Ramada Barstow is located off Interstate 15, 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 bene?ts from many key industries of the city which include military, retail, and health care. Marine Corps Logistics Base and Raytheon Tech Services, two of the city’s largest employers, located approximately 7.8 miles and 1.2 miles from the Hotel, are prime revenue drivers for the surrounding area. Other major employers responsible for a signi?cant portion of the workforce include Fort Irwin National Training Center, BNSF Railroad, and Barstow Community Hospital. Revenue generators in the area, like the Outlets at Barstow, Route 66 Mother Road Museum, Mojave National Preserve, and the Western American Railroad Museum help bring additional revenue to the Hotel through an increase in transient business. The limited-service Hotel recorded room revenues of over $2.28 million in 2021, a signi?cant 14 percent increase from 2019. Operationally, the Hotel maintained healthy cash ?ow with a pass-through net operating income of approximately 31.6 percent after a 4 percent capital replacement reserve. Net operating income after interest, taxes, depreciation, and amortization equates to more than $722.9 thousand. An experienced owner-operator can expect to achieve a 20.72 percent cash-on-cash return in year one and a 36.01 percent overall ?ve-year IRR.

Exclusively Listed By

Broker of Record

  • Jim Markel

    First Vice President/Regional Manager

    (818) 212-2700

    License(s): CA: 01253407

    California

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