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 Drifter Motel Silver City (‘Hotel’ or ‘Property’) located in Silver City, New Mexico. The independent Hotel is offered at $1,850,000 or $28,030 per key. Drifter Motel Silver City is a 66-room, two-story Hotel stationed at 711 Silver Heights Blvd in Silver City, New Mexico, just off State Highway 180. The Property offers common amenities such as ample parking, an on-site restaurant, and an outdoor grill with covered seating. Silver City, New Mexico is a historic southwestern town with a rich cultural heritage and a wealth of attractions for visitors to enjoy. The nearby Gila National Forest offers an abundance of recreational opportunities including hiking, fishing, and camping. Numerous trailheads surround Silver City, the most popular of which include the Continental Divide Trail, the Market Street Trailhead, and the Cheyenne Street Trailhead. The city is also home to Western New Mexico University (WNMU), which maintains a museum on campus that’s open to the public. The WNMU Museum displays the art, history, and cultural heritage of the Southwest and is located on the campus of WNMU. An annual event, the Tour of the Gila is a bicycle race that attracts participants and fans from around the world. Silver City also has a well-preserved historic district with Victorian-era architecture that has been revitalized over decades to be an award-winning downtown development. In addition to the area’s attractions, some of the top employers in the city include Gila Regional Medical Center, Western New Mexico University, Freeport-McMoRan Copper & Gold Incorporated, and the Silver Consolidated School District. In 2022, the Hotel recorded room revenues greater than $516 thousand and a net operating income just over $296 thousand, or 42.7 percent of gross revenues, after a 4 percent capital replacement reserve. The Hotel’s on-site restaurant space presents the opportunity for a new owner to renovate the area into a fully functional restaurant that can provide another source of revenue. A prospective buyer should be able to capitalize on the anticipated increase in RevPAR from better revenue management, not only benefiting from increased market share but also higher NOI flow-through.