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Hotel-Motel

Microtel Inn & Suites by Wyndham Tuscaloosa Near University

1417 Veterans Memorial Pkwy, Tuscaloosa, AL 35404

Listing Price: $5,000,000

Cap Rate
9.08%
Number of Rooms
59
RevPAR
$49
Price/Room
$84,746
RRM
4.74
Year Built
2008

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 Microtel Inn and Suites by Wyndham Tuscaloosa Near University (‘Hotel’ or ‘Property’). The Wyndham Hotels and Resorts-branded Hotel is offered at $5,000,000 or $84,746 per key. The Microtel Inn and Suites is located at 1417 Veterans Memorial Pkwy in Tuscaloosa, Alabama, about two minutes from The University of Alabama. The 59-room, four-story building was constructed in 2008 and situated on a one-acre lot. The Property maintains a variety of common area amenities including a business center, fitness center, meeting room, and parking for buses or trucks. The city of Tuscaloosa is the county seat of Tuscaloosa County and positioned in west-central Alabama on the Black Warrior River. Alabama’s fifth-largest city, Tuscaloosa is the regional center of many different industries in West Alabama, such as manufacturing, commerce, healthcare, and education. The city is home to the University of Alabama, which enrolls more than 38,000 undergraduate and graduate students, as well as Stillman College and Shelton State Community College, which combine for greater than 6,000 total students. With more than 7,100 employees and a total economic impact of $978 million, The University of Alabama provides the city with many demand generators and transient business travel as Tuscaloosa’s largest employer. The bulk of the University of Alabama’s impact is generated from football games, with other events such as commencement ceremonies and conferences making up the rest of visitors’ impact on the metro area. Each year, various cultural and historical events occur off-campus in the city of Tuscaloosa across six different festivals hosted by city which draw in thousands of participants each year. Outside of higher education, which is the bedrock of the local economy, twenty-five percent of the labor force is employed by federal, state, and local governments. Furthermore, just about seventeen percent are in manufacturing, sixteen in retail trade and transportation, and twelve percent in finance. The site of Mercedes-Benz’s first North American automotive assembly plant, Tuscaloosa County greatly benefits from this manufacturing powerhouse, which employers greater than 4,400 employees. The Hotel has maintained strong historical cash flow, with average room revenues exceeding $1M over the past three years excluding the 2020 market downturn. Net operating income through the trailing twelve-month period ending in November has exceeded $456 thousand, or 42.3 percent of gross revenues, after a four percent capital replacement reserve. Twelve-month RevPAR in the Tuscaloosa hotel submarket was up sharply as of October and climbed at a 21.8 percent year-over-year rate. That's stronger than the otherwise considerable 17.8 percent increase observed market wide. The Property is well-positioned to increase its revenues by capitalizing on positive RevPAR and NOI trends.

Investment Highlights

  • Four-Story, 59-Room, Wyndham Hotels and Resorts-Branded Hotel
  • Priced at an Attractive 9.14 Percent Cap Rate for $84,746 Per Key
  • Located Two Miles from the University of Alabama
  • Surrounded by a Diverse Array of Nationally Acclaimed Retailers, Restaurants, and Entertainment Amenities
  • TTM November 2022 Room Revenues Exceeded $1.07 Million with Over $456 Thousand in Net Operating Income
  • Offered Fee-Simple, Unencumbered by Management Contracts or Existing Debt

Broker of Record

  • Eddie Greenhalgh

    Senior Vice President Investments

    (205) 510-9200

    License(s) AL: 0000882980

    Alabama

Financing By

Hotel-Motel

Microtel Inn & Suites by Wyndham Tuscaloosa Near University

Listing Price: $5,000,000

Cap Rate
9.08%
Number of Rooms
59
RevPAR
$49
Price/Room
$84,746
RRM
4.74
Year Built
2008

Investment Highlights

  • Four-Story, 59-Room, Wyndham Hotels and Resorts-Branded Hotel
  • Priced at an Attractive 9.14 Percent Cap Rate for $84,746 Per Key
  • Located Two Miles from the University of Alabama
  • Surrounded by a Diverse Array of Nationally Acclaimed Retailers, Restaurants, and Entertainment Amenities
  • TTM November 2022 Room Revenues Exceeded $1.07 Million with Over $456 Thousand in Net Operating Income
  • Offered Fee-Simple, Unencumbered by Management Contracts or Existing Debt

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 Microtel Inn and Suites by Wyndham Tuscaloosa Near University (‘Hotel’ or ‘Property’). The Wyndham Hotels and Resorts-branded Hotel is offered at $5,000,000 or $84,746 per key. The Microtel Inn and Suites is located at 1417 Veterans Memorial Pkwy in Tuscaloosa, Alabama, about two minutes from The University of Alabama. The 59-room, four-story building was constructed in 2008 and situated on a one-acre lot. The Property maintains a variety of common area amenities including a business center, fitness center, meeting room, and parking for buses or trucks. The city of Tuscaloosa is the county seat of Tuscaloosa County and positioned in west-central Alabama on the Black Warrior River. Alabama’s fifth-largest city, Tuscaloosa is the regional center of many different industries in West Alabama, such as manufacturing, commerce, healthcare, and education. The city is home to the University of Alabama, which enrolls more than 38,000 undergraduate and graduate students, as well as Stillman College and Shelton State Community College, which combine for greater than 6,000 total students. With more than 7,100 employees and a total economic impact of $978 million, The University of Alabama provides the city with many demand generators and transient business travel as Tuscaloosa’s largest employer. The bulk of the University of Alabama’s impact is generated from football games, with other events such as commencement ceremonies and conferences making up the rest of visitors’ impact on the metro area. Each year, various cultural and historical events occur off-campus in the city of Tuscaloosa across six different festivals hosted by city which draw in thousands of participants each year. Outside of higher education, which is the bedrock of the local economy, twenty-five percent of the labor force is employed by federal, state, and local governments. Furthermore, just about seventeen percent are in manufacturing, sixteen in retail trade and transportation, and twelve percent in finance. The site of Mercedes-Benz’s first North American automotive assembly plant, Tuscaloosa County greatly benefits from this manufacturing powerhouse, which employers greater than 4,400 employees. The Hotel has maintained strong historical cash flow, with average room revenues exceeding $1M over the past three years excluding the 2020 market downturn. Net operating income through the trailing twelve-month period ending in November has exceeded $456 thousand, or 42.3 percent of gross revenues, after a four percent capital replacement reserve. Twelve-month RevPAR in the Tuscaloosa hotel submarket was up sharply as of October and climbed at a 21.8 percent year-over-year rate. That's stronger than the otherwise considerable 17.8 percent increase observed market wide. The Property is well-positioned to increase its revenues by capitalizing on positive RevPAR and NOI trends.

Broker of Record

  • Eddie Greenhalgh

    Senior Vice President Investments

    (205) 510-9200

    License(s): AL: 0000882980

    Alabama

Financing By

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