Hotel-Motel
OYO Hotel Shelby MT Hwy 2 & I-15
1200 Roosevelt Hwy, Shelby, MT 59474
Listing Price: $2,200,000
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 OYO Hotels Shelby MT Hwy 2 & I-15 (‘Hotel’ or ‘Property’) located in Shelby, Montana. The Choice Hotels-branded Hotel is offered at $2,200,000 or $43,137 per key. The OYO Hotels Shelby MT Hwy 2 & I-15 is a 51-room, two-story Hotel stationed at 1200 Roosevelt Hwy in Shelby, Montana near the intersection of Highway 2 and Interstate 15. Common area amenities maintained by the Property includes a lobby sitting area, vending machine, ice machine, and 400 square feet of meeting space. Shelby is the county seat of Toole County, Montana and located in northern Montana, along the Marias River. The city’s position within a picturesque landscape featuring vast prairies and rolling hillsides make Shelby a popular destination for outdoor enthusiasts. Of the many small parks and trails surrounding the region, Williamson Park is among the most popular, located on the banks of the Marias River and equipped with a picnic area, campgrounds, fishing spots, and space for recreational vehicles. Another popular outdoor destination in the city is the Shelby Splash Park and Community Pool, a pool complex that features picnic tables and an ADA accessible play structure. One of the most popular attractions in the city, the Marias Museum of History and Art, exhibits the region’s rich history with a focus on the arrival of the railroad and the impact of the homesteading era. The museum also showcases a variety of art exhibits, Native American artifacts, dinosaur fossils, and various other pieces of Toole County’s history. An important transportation hub for the region, Shelby is strategically located at the intersection of two major highways in Montana. The city’s economy is primarily rooted in agriculture, oil and gas production, and transportation. City development has been focused primarily on revitalizing its downtown area in recent years with heavy investments in infrastructure improvements. The ongoing downtown renovation project features new restaurants and shops alongside new water lines, sewer lines, and upgraded streets. Logan Health - Shelby, formerly Marias Medical Center, is one of the city’s largest employers and has recently undergone significant expansion and renovation. Other major economic contributors in the area include the City of Shelby, Toole County School District, and ConocoPhillips. Additionally, Rosetta Resources has several oil and gas wells just over 20 miles west of Shelby. In 2022, the Hotel recorded room revenues greater than $679 thousand and a net operating income exceeding $109 thousand, or 16 percent of gross revenues, after a 4 percent capital replacement reserve. Downtown revitalization efforts from the city has already resulted in new businesses opening and existing businesses expanding. With Shelby’s recent growth and strategic location on major transportation routes, the city provides more opportunities to capitalize on the increased demand for rooms. A prospective buyer should be able to take advantage of the anticipated increase in RevPAR from better revenue management, not only benefiting from increased market share but also higher NOI flow-through.
OYO Hotel Shelby MT Hwy 2 & I-15
Investment Highlights
- Two-Story, 51-Room, OYO Hotels-Branded Hotel Priced Well Below Replacement Cost at $43,137
- Easily Accessible and Highly Visible from the Intersection of Montana Highway 2 and Interstate 15
- Located 24 Miles from Cut Bank and 35 Miles from Sweet Grass and the Canada/US Border
- Positioned 70 Miles from East Glacier Park, 83 Miles from Glacier National Park's Saint Marie Entrance, and 125 Miles from the W Glacier Entrance
- 2022 Room Revenues Exceeded $679 Thousand While Maintaining an NOI Greater than $109 Thousand
- Offered Fee-Simple, Unencumbered by Management Contracts or Existing Debt
Listing Price: $2,200,000
Investment Highlights
- Two-Story, 51-Room, OYO Hotels-Branded Hotel Priced Well Below Replacement Cost at $43,137
- Easily Accessible and Highly Visible from the Intersection of Montana Highway 2 and Interstate 15
- Located 24 Miles from Cut Bank and 35 Miles from Sweet Grass and the Canada/US Border
- Positioned 70 Miles from East Glacier Park, 83 Miles from Glacier National Park's Saint Marie Entrance, and 125 Miles from the W Glacier Entrance
- 2022 Room Revenues Exceeded $679 Thousand While Maintaining an NOI Greater than $109 Thousand
- 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 OYO Hotels Shelby MT Hwy 2 & I-15 (‘Hotel’ or ‘Property’) located in Shelby, Montana. The Choice Hotels-branded Hotel is offered at $2,200,000 or $43,137 per key. The OYO Hotels Shelby MT Hwy 2 & I-15 is a 51-room, two-story Hotel stationed at 1200 Roosevelt Hwy in Shelby, Montana near the intersection of Highway 2 and Interstate 15. Common area amenities maintained by the Property includes a lobby sitting area, vending machine, ice machine, and 400 square feet of meeting space. Shelby is the county seat of Toole County, Montana and located in northern Montana, along the Marias River. The city’s position within a picturesque landscape featuring vast prairies and rolling hillsides make Shelby a popular destination for outdoor enthusiasts. Of the many small parks and trails surrounding the region, Williamson Park is among the most popular, located on the banks of the Marias River and equipped with a picnic area, campgrounds, fishing spots, and space for recreational vehicles. Another popular outdoor destination in the city is the Shelby Splash Park and Community Pool, a pool complex that features picnic tables and an ADA accessible play structure. One of the most popular attractions in the city, the Marias Museum of History and Art, exhibits the region’s rich history with a focus on the arrival of the railroad and the impact of the homesteading era. The museum also showcases a variety of art exhibits, Native American artifacts, dinosaur fossils, and various other pieces of Toole County’s history. An important transportation hub for the region, Shelby is strategically located at the intersection of two major highways in Montana. The city’s economy is primarily rooted in agriculture, oil and gas production, and transportation. City development has been focused primarily on revitalizing its downtown area in recent years with heavy investments in infrastructure improvements. The ongoing downtown renovation project features new restaurants and shops alongside new water lines, sewer lines, and upgraded streets. Logan Health - Shelby, formerly Marias Medical Center, is one of the city’s largest employers and has recently undergone significant expansion and renovation. Other major economic contributors in the area include the City of Shelby, Toole County School District, and ConocoPhillips. Additionally, Rosetta Resources has several oil and gas wells just over 20 miles west of Shelby. In 2022, the Hotel recorded room revenues greater than $679 thousand and a net operating income exceeding $109 thousand, or 16 percent of gross revenues, after a 4 percent capital replacement reserve. Downtown revitalization efforts from the city has already resulted in new businesses opening and existing businesses expanding. With Shelby’s recent growth and strategic location on major transportation routes, the city provides more opportunities to capitalize on the increased demand for rooms. A prospective buyer should be able to take advantage of the anticipated increase in RevPAR from better revenue management, not only benefiting from increased market share but also higher NOI flow-through.
