Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's Hospitality Division is pleased to present for sale to qualified investors the Motel 6 Chattanooga – Airport (‘Hotel’ or ‘Property’) located in Chattanooga, Tennessee. The G6 Hospitality-branded Hotel is offered at $6,500,000 or $65,000 per key. The Motel 6 Chattanooga - Airport is a 100-room, three-story Hotel stationed at 5505 Brainerd Road in Chattanooga, Tennessee, near Interstate 24 and Interstate 75. Various common area amenities at the Property include an outdoor pool, lobby sitting area, and ample parking. Chattanooga, located in Tennessee, is a vibrant city nestled along the Tennessee River. Known for its scenic beauty and outdoor attractions, it offers a diverse range of activities for residents and visitors. The city is famous for the Tennessee Aquarium, one of the largest freshwater aquariums in the world, providing an immersive experience into aquatic life. Outdoor enthusiasts can explore the nearby Lookout Mountain, offering hiking trails and panoramic views of the city. The iconic Ruby Falls is an iconic popular tourist destination that features an underground waterfall inside Lookout Mountain. Additionally, Chattanooga is also a hub for outdoor activities such as rock climbing, kayaking, and biking, making it an ideal destination for adventure seekers. The city's revitalized downtown area features a thriving arts and music scene, with numerous galleries, theaters, and live music venues. Chattanooga is home to the Hunter Museum of American Art, showcasing a diverse collection of American artworks. The Walnut Street Bridge, a historic pedestrian bridge, connects downtown to the North Shore district, offering a picturesque walk with views of the river and the city skyline. Chattanooga is a railway hub, and the Tennessee Valley Railroad Museum allows visitors to experience historic train rides. The city hosts various events and festivals throughout the year, including the Riverbend Festival, highlighting live music performances. Additionally, Chattanooga is renowned for its culinary scene, with a plethora of restaurants offering a wide range of cuisines, from Southern comfort food to international delicacies. The city's commitment to sustainability is evident in its green spaces, including Coolidge Park and the Riverwalk, providing scenic spots for relaxation and recreation. In the trailing twelve-month period ending in August 2023, the Hotel recorded room revenues of over $1.35 million and a net operating income just over $309 thousand, or 22.5 percent as a percentage of total revenues, after a 3 percent management fee and 4 percent capital replacement reserve. A prospective buyer should be able to capitalize on the anticipated increase in RevPAR through better revenue management, not only benefiting from increased market share but also higher NOI flow-through. As of September, the average RevPAR in the Chattanooga hotel submarket exhibited robust growth, firmly in positive territory, and rising at an impressive annual rate of 8.3 percent. This growth rate surpasses the 3.8 percent increase noted in the broader Chattanooga market.