Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's Hospitality Division is pleased to present for sale to qualified investors the Four Points by Sheraton Kalamazoo ('Hotel' or 'Property') located in Kalamazoo, Michigan. The Marriott International-branded Hotel is being offered at $6,000,000 or $40,268 per key. The Four Points by Sheraton Kalamazoo is a 149-room, six-story Hotel located at 3600 Old Cork Street, Kalamazoo, Michigan. The Property is situated off Interstate 94. Various common area amenities at the Property include an on-site restaurant and bar, fitness center, meeting space, convenience store, and dry-cleaning service. Kalamazoo, Michigan, epitomizes a harmonious blend of academic excellence, cultural vibrancy, and natural beauty, easily accessible via Kalamazoo/Battle Creek International Airport. Renowned for its esteemed educational institutions, including Western Michigan University and Kalamazoo College, the city radiates an intellectual dynamism that permeates its streets. Yet, beyond academia, Kalamazoo enchants its picturesque surroundings, from the tranquil banks of the Kalamazoo River to the lush landscapes of nearby parks and nature reserves. Outdoor enthusiasts delight in the abundance of recreational opportunities, from hiking along the Kal-Haven Trail to kayaking on Morrow Lake. Meanwhile, Kalamazoo's lively community life thrives through its vibrant arts scene, bustling downtown, and eclectic array of local businesses. Visitors and residents alike can indulge in the region's culinary delights, from artisanal coffee shops to farm-to-table eateries showcasing the bounty of Michigan's agricultural heritage. In essence, Kalamazoo offers a multifaceted tapestry of experiences, ensuring a warm and enriching environment for all who are captivated by its charms. Strategically positioned amidst a vibrant array of attractions, the hotel serves as a gateway for travelers seeking both convenience and exploration. Just moments away lies the Kalamazoo/Battle Creek International Airport, ensuring swift access to global connections. For those yearning for outdoor adventures, the Kal-Haven Trail State Park beckons, offering picturesque trails and the serenity of nature. Nearby, the Air Zoo Aerospace and Science Museum invite guests to delve into the wonders of flight and space exploration. Animal enthusiasts can embark on a safari at the Binder Park Zoo, while nature aficionados can meander through the serene beauty of the Lillian Anderson Arboretum or explore the diverse ecosystems of the Kalamazoo Nature Center. Whatever the pursuit, the hotel's strategic location ensures that every experience is within easy reach. The Hotel's current RevPAR index of 65 percent indicates untapped potential. With strategic revenue management and marketing, a new owner could raise the index to 78-84 percent, driving room revenues to approximately $2.66-3.20 million dollars. This improvement would enhance ROI and increase asset value, offering substantial upside for investors. The Hotel achieved an impressive net operating income margin of 24.5 percent at year-end 2023. This indicated significant advantages for buyers, such as excess capital for renovations, operational efficiency, and robust investment potential.