Hotel-Motel

Comfort Suites Lake Geneva East

300 East Main Street, Lake Geneva, WI 53147

Listing Price: Request For Offer

Number of Rooms
80
RevPAR
$61
Gross SF
60,570
Year Built
2005

Investment Overview

Marcus & Millichaps National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Comfort Suites Lake Geneva East. The Choice-branded hotel is priced at $7,295,000 or $91,188 price per room; this represents a 3.16 times multiple on July 2019 trailing 12-month room revenues. An established property, constructed in 2005, is located along the Highway 50 corridor, near the interchange with Highway 12.

Priced at an 9.49 percent capitalization rate, this three-story, 80-room hotel presents a new investor the opportunity to acquire a fully-stabilized asset near the Chicago metropolitan statistical area. An investor, looking to act as an owner-operator, can maximize profits through a reduction in management costs for the property. The hotel is well-equipped with an indoor pool, fitness center, and meeting rooms.

Operationally, the hotel achieved $2,311,548 in room revenue, resulting in a net-operating income of approximately 30 percent of total revenue; this translates to about $692,393 before debt service. The property has been consistently outperforming the competitive set in both occupancy and ADR, reaching a RevPAR index of 133 percent. Additionally, the hotel has experienced large year-over-year RevPAR growth upwards of 15.6 percent since 2016; this has positioned the property to continue to be one of the leading hotels in the market.

The expenses include provisions for a three percent management fee and four percent reserve for capital replacement. The hotel is offered fee simple, unencumbered by a management contract and debt.

Investment Highlights

  • 80-Room, Interior Corridor, Upper Midscale Hotel Built in 2005
  • Lake Geneva: 2019 USA Today Readers Choice Best Small Town for Adventure
  • $280,000 in Renovations and Capital Improvements Since 2017
  • Operational Upside for Prospective Hands-On Owner-Operator Investor
  • Located 50 Miles Southwest of Milwaukee, 70 Miles Southeast of Madison

Exclusively Listed By

Broker of Record

  • Todd Lindblom

    Regional Manager

    License(s): WI: 56163-90

    Wisconsin

Hotel-Motel

Comfort Suites Lake Geneva East

Listing Price: Request For Offer

Number of Rooms
80
RevPAR
$61
Gross SF
60,570
Year Built
2005

Investment Highlights

  • 80-Room, Interior Corridor, Upper Midscale Hotel Built in 2005
  • Lake Geneva: 2019 USA Today Readers Choice Best Small Town for Adventure
  • $280,000 in Renovations and Capital Improvements Since 2017
  • Operational Upside for Prospective Hands-On Owner-Operator Investor
  • Located 50 Miles Southwest of Milwaukee, 70 Miles Southeast of Madison

Investment Overview

Marcus & Millichaps National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Comfort Suites Lake Geneva East. The Choice-branded hotel is priced at $7,295,000 or $91,188 price per room; this represents a 3.16 times multiple on July 2019 trailing 12-month room revenues. An established property, constructed in 2005, is located along the Highway 50 corridor, near the interchange with Highway 12.

Priced at an 9.49 percent capitalization rate, this three-story, 80-room hotel presents a new investor the opportunity to acquire a fully-stabilized asset near the Chicago metropolitan statistical area. An investor, looking to act as an owner-operator, can maximize profits through a reduction in management costs for the property. The hotel is well-equipped with an indoor pool, fitness center, and meeting rooms.

Operationally, the hotel achieved $2,311,548 in room revenue, resulting in a net-operating income of approximately 30 percent of total revenue; this translates to about $692,393 before debt service. The property has been consistently outperforming the competitive set in both occupancy and ADR, reaching a RevPAR index of 133 percent. Additionally, the hotel has experienced large year-over-year RevPAR growth upwards of 15.6 percent since 2016; this has positioned the property to continue to be one of the leading hotels in the market.

The expenses include provisions for a three percent management fee and four percent reserve for capital replacement. The hotel is offered fee simple, unencumbered by a management contract and debt.

Exclusively Listed By

Broker of Record

  • Todd Lindblom

    Regional Manager

    License(s): WI: 56163-90

    Wisconsin

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