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Hotel-Motel

Howard Johnson by Wyndham Holbrook

2604 Navajo Blvd, Holbrook, AZ 86025

Listing Price: $2,700,000

Cap Rate
9.04%
Number of Rooms
41
RevPAR
$53
Price/Room
$65,854
RRM
3.36
Year Built
1993

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 Howard Johnson Holbrook (‘Hotel’ or ‘Property’). The Wyndham-branded Hotel is offered at $2,700,000 or $65,854 per key. The Howard Johnson is a 41-room, economy Hotel established at 2604 Navajo Boulevard, just off Interstate 40. The Property is approximately 27,570 square feet across two floors and maintains amenities including an indoor pool and hot tub, fitness center, and guest laundry facilities. Holbrook, Arizona is a city located in Navajo County in the eastern region of the state, about 180 miles north of Phoenix, AZ and 230 miles west of Albuquerque, NM. The Howard Johnson is located off Interstate 40, 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 retail, transportation, tourism, and health care. Revenue generators in the area, like the Petrified Forest National Park, Painted Desert, the Navajo and Hopi Lands, and Navajo County Fairgrounds help bring additional revenue to the Hotel through an increase in transient business. The Hotel further benefits from the Holbrook Municipal Airport, located less than one mile away. The limited-service Hotel recorded room revenues over $800 thousand in 2021, a significant 30 percent increase from 2019. Operationally, the Hotel maintained healthy cashflows with a pass-through net operating income of approximately 30.4 percent after a four percent capital replacement reserve. Net operating income after interest, taxes, depreciation, and amortization equates to more than $244 thousand. An experienced owner-operator can expect to achieve an 18.16 percent cash on cash return in year one and a 19.1 percent overall 5-year IRR.

Investment Highlights

  • Two-Story, 41-Room, Limited-Service Hotel Located Off Interstate 40
  • Less than One Mile from Holbrook Municipal Airport
  • Surrounded by an Abundance of Nationally Acclaimed Retailers, Restaurants, and Entertainment Amenities
  • Priced Below Replacement Costs at $65,854 per Key |3.36 Room Revenue Multiplier and 9.04 Percent Cap Rate
  • Ideal In-Place Operations with Room Revenues over $802 Thousand and Net Operating Income of Over $244 Thousand or 30.4 Percent of Gross Revenues

Exclusively Listed By

Broker of Record

  • Ryan Sarbinoff

    First Vice President/Regional Manager

    (602) 687-6700

    License(s) AZ: BR675146000

    Arizona

Hotel-Motel

Howard Johnson by Wyndham Holbrook

Listing Price: $2,700,000

Cap Rate
9.04%
Number of Rooms
41
RevPAR
$53
Price/Room
$65,854
RRM
3.36
Year Built
1993

Investment Highlights

  • Two-Story, 41-Room, Limited-Service Hotel Located Off Interstate 40
  • Less than One Mile from Holbrook Municipal Airport
  • Surrounded by an Abundance of Nationally Acclaimed Retailers, Restaurants, and Entertainment Amenities
  • Priced Below Replacement Costs at $65,854 per Key |3.36 Room Revenue Multiplier and 9.04 Percent Cap Rate
  • Ideal In-Place Operations with Room Revenues over $802 Thousand and Net Operating Income of Over $244 Thousand or 30.4 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 Howard Johnson Holbrook (‘Hotel’ or ‘Property’). The Wyndham-branded Hotel is offered at $2,700,000 or $65,854 per key. The Howard Johnson is a 41-room, economy Hotel established at 2604 Navajo Boulevard, just off Interstate 40. The Property is approximately 27,570 square feet across two floors and maintains amenities including an indoor pool and hot tub, fitness center, and guest laundry facilities. Holbrook, Arizona is a city located in Navajo County in the eastern region of the state, about 180 miles north of Phoenix, AZ and 230 miles west of Albuquerque, NM. The Howard Johnson is located off Interstate 40, 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 retail, transportation, tourism, and health care. Revenue generators in the area, like the Petrified Forest National Park, Painted Desert, the Navajo and Hopi Lands, and Navajo County Fairgrounds help bring additional revenue to the Hotel through an increase in transient business. The Hotel further benefits from the Holbrook Municipal Airport, located less than one mile away. The limited-service Hotel recorded room revenues over $800 thousand in 2021, a significant 30 percent increase from 2019. Operationally, the Hotel maintained healthy cashflows with a pass-through net operating income of approximately 30.4 percent after a four percent capital replacement reserve. Net operating income after interest, taxes, depreciation, and amortization equates to more than $244 thousand. An experienced owner-operator can expect to achieve an 18.16 percent cash on cash return in year one and a 19.1 percent overall 5-year IRR.

Exclusively Listed By

Broker of Record

  • Ryan Sarbinoff

    First Vice President/Regional Manager

    (602) 687-6700

    License(s): AZ: BR675146000

    Arizona

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