Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's Hospitality Division is pleased to present for sale to qualified investors the Budgetel Inn & Suites Louisville (‘Hotel’ or ‘Property’) located in Louisville, Kentucky. The Hospitality Lodging Systems-branded Hotel is offered on a "call for offers" basis. Please reach out to the listing agent for more information. The Budgetel Inn & Suites Louisville is a 189-room, two-story Hotel stationed at 3304 Bardstown Road in Louisville, Kentucky, just off U.S. Highway 150 and Interstate 264. Various common area amenities at the Property include a jacuzzi, guest laundry facility, spacious parking, and copy and fax services. Louisville, Kentucky, is a vibrant city located in the north-central part of the state and serves as the county seat of Jefferson County. Known for its rich history and cultural heritage, Louisville offers a plethora of popular attractions and activities. Sports enthusiasts flock to the iconic Kentucky Derby, one of the most famous horse racing events in the world, held annually at Churchill Downs (7.1 miles). History buffs can delve into the city's baseball legacy at the Louisville Slugger Museum, which showcases the renowned Louisville Slugger baseball bat (11.1 miles). The Kentucky Derby Museum offers an immersive experience into the history and excitement of the prestigious horse race (7.1 miles). Whisky enthusiasts can savor the flavors of Kentucky on distillery tours, exploring the city's bourbon heritage and visiting renowned distilleries. Visitors can also embark on a scenic cruise aboard the Belle of Louisville (10.6 miles), the oldest operating steamboat in the United States. For those seeking inspiration, the Muhammad Ali Center (12.2 miles) pays tribute to the legendary boxer and humanitarian. Louisville's economy is marked by a diverse mix of industries that contribute to its growth and stability. The city hosts major employers, including the University of Louisville (6.2 miles), a prestigious public research institution with an enrollment of over 20,000 students, fostering educational opportunities and innovation. Recently, Louisville has seen significant investments within its city limits. There are currently 190 active or proposed developments primarily concentrated in the healthcare, retail, and residential sectors. Most notably, Baptist Health (4.0 miles) recently opened a new $90 million outpatient facility which created more than 200 jobs and will provide state-of-the-art medical services to the community. Additionally, the city's strategic location along the Ohio River has made it a vital transportation and logistics hub, attracting businesses, and enhancing economic activity. Louisville's proactive approach to economic development has resulted in infrastructure improvements, supporting business growth, and enhancing the overall quality of life for its residents and visitors. In the trailing twelve-month period ending in December 2022, the limited-service Hotel recorded room revenues of over $2.1 million and a net operating income just over $646,000, or 29.8 percent as a percentage of total revenues, after a 4 percent capital replacement reserve. As of June, twelve-month average RevPAR in the Louisville East hotel submarket was climbing at an exceptionally strong 12.1 percent annual rate. 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.