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Hotel-Motel

Travelodge Ogallala

201 Stagecoach Trail, Ogallala, NE 69153

Listing Price: $2,500,000

Cap Rate
6.59%
Number of Rooms
100
RevPAR
$20
Price/Room
$25,000
Year Built
1969

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 Travelodge by Wyndham Ogallala (‘Hotel’ or ‘Property’). The Wyndham Hotels & Resort-branded Hotel is offered at $2,500,000 or $25,000 per key. The Hotel is comprised of three two-story buildings that were built in 1969 plus a detached four-bedroom, 2.5-bathroom, single-family home that works perfectly as an owner or general manager’s living quarters. The current owner converted the Hotel from an independent hotel into a Travelodge by Wyndham in 2017, spending nearly $480,000 on guest rooms, building exterior and lobby renovations through 2021. Common area amenities include an outdoor pool, business center, fitness center, guest laundry facilities, playground, and ample bus/truck parking. The Hotel is located in the City of Ogallala, Keith County, Nebraska near the borders of Colorado, Wyoming, and Kansas. Well-positioned along Stagecoach Trail at the northeast corner of Highway 61 and Interstate 80 connector, the Hotel has excellent visibility from Interstate 80 and is the closest franchised hotel to downtown Ogallala and the Ogallala Community Hospital, a Top-100 critical access hospital in the country and one of Keith County's largest employers. Additional access is provided via the North Platte Regional Airport (one hour drive to the east), which has daily direct flights to and from Denver, Nashville, and Omaha. While the Hotel’s interstate location allows it to capitalize on demand from interstate travelers, nearby leisure demand drivers account for a majority of room demand. The most popular leisure destination is Lake McConaughy, a 30,500 square mile lake with approximately 105 miles of shoreline that’s located 9.5 miles to the north of the Hotel. A well-known hiking, fishing, boating, and bird-watching destination for both in-state and out-of-state travelers, Lake McConaughy hosts between 1.8 million and 1.9 million visitors annually, making it the second-largest tourist attraction in Nebraska. Despite its superb location and diverse demand drivers, the Hotel has signi?cantly underperformed the market under current management (Trailing twelve-month October 2022 RevPAR Penetration Index of 37 percent), and a review of historical expenses suggests inef?ciencies in current Hotel operations. As such, a new owner has the opportunity to reposition the Hotel to both increase room revenues and decrease operating expenses through active revenue management and the implementation of stricter cost controls. Notably, operating expenses include a provision for a four percent capital replacement reserve.

Investment Highlights

  • Two-Story, 100-Room, Exterior Corridor Hotel Recently Renovated in 2021
  • Trailing Twelve-Month October 2022 RevPAR Index of 37% Presenting Significant Upside
  • Excellent Location Near Lake McConaughy, Downtown Ogallala, and Interstate 80
  • Priced Well-Below Replacement Cost at $25,000 Per Key

Exclusively Listed By

Broker of Record

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9700

    License(s) NE: 20200223

    Nebraska

Hotel-Motel

Travelodge Ogallala

Listing Price: $2,500,000

Cap Rate
6.59%
Number of Rooms
100
RevPAR
$20
Price/Room
$25,000
Year Built
1969

Investment Highlights

  • Two-Story, 100-Room, Exterior Corridor Hotel Recently Renovated in 2021
  • Trailing Twelve-Month October 2022 RevPAR Index of 37% Presenting Significant Upside
  • Excellent Location Near Lake McConaughy, Downtown Ogallala, and Interstate 80
  • Priced Well-Below Replacement Cost at $25,000 Per Key

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 Travelodge by Wyndham Ogallala (‘Hotel’ or ‘Property’). The Wyndham Hotels & Resort-branded Hotel is offered at $2,500,000 or $25,000 per key. The Hotel is comprised of three two-story buildings that were built in 1969 plus a detached four-bedroom, 2.5-bathroom, single-family home that works perfectly as an owner or general manager’s living quarters. The current owner converted the Hotel from an independent hotel into a Travelodge by Wyndham in 2017, spending nearly $480,000 on guest rooms, building exterior and lobby renovations through 2021. Common area amenities include an outdoor pool, business center, fitness center, guest laundry facilities, playground, and ample bus/truck parking. The Hotel is located in the City of Ogallala, Keith County, Nebraska near the borders of Colorado, Wyoming, and Kansas. Well-positioned along Stagecoach Trail at the northeast corner of Highway 61 and Interstate 80 connector, the Hotel has excellent visibility from Interstate 80 and is the closest franchised hotel to downtown Ogallala and the Ogallala Community Hospital, a Top-100 critical access hospital in the country and one of Keith County's largest employers. Additional access is provided via the North Platte Regional Airport (one hour drive to the east), which has daily direct flights to and from Denver, Nashville, and Omaha. While the Hotel’s interstate location allows it to capitalize on demand from interstate travelers, nearby leisure demand drivers account for a majority of room demand. The most popular leisure destination is Lake McConaughy, a 30,500 square mile lake with approximately 105 miles of shoreline that’s located 9.5 miles to the north of the Hotel. A well-known hiking, fishing, boating, and bird-watching destination for both in-state and out-of-state travelers, Lake McConaughy hosts between 1.8 million and 1.9 million visitors annually, making it the second-largest tourist attraction in Nebraska. Despite its superb location and diverse demand drivers, the Hotel has signi?cantly underperformed the market under current management (Trailing twelve-month October 2022 RevPAR Penetration Index of 37 percent), and a review of historical expenses suggests inef?ciencies in current Hotel operations. As such, a new owner has the opportunity to reposition the Hotel to both increase room revenues and decrease operating expenses through active revenue management and the implementation of stricter cost controls. Notably, operating expenses include a provision for a four percent capital replacement reserve.

Exclusively Listed By

Broker of Record

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9700

    License(s): NE: 20200223

    Nebraska

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