Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's Hospitality Division is pleased to present for sale to qualified investors the Birch Hill Suites (‘Hotel’ or ‘Property’) located in South Bend, Indiana. The independent hotel is offered on a “call for offers” basis. Please reach out to the listing agent for more information. The Birch Hill Suites is a 117-room, four-story, extended-stay hotel located at 52825 State Highway 933 in South Bend, Indiana. The property is strategically situated off Interstate 90, which sees over 27,000 vehicles in annual average daily traffic. Just 2.2 miles from the University of Notre Dame, the property offers amenities including a fitness center, on-site guest laundry, a kitchenette in each room, outdoor patio, and a heated indoor pool. The property is currently absentee-owned and managed by a third-party company. Birch Hill Suites is located within the South Bend-Mishawaka Metropolitan Statistical Area (MSA), a regional hub that includes St. Joseph County in Indiana and Cass County in Michigan. South Bend benefits from excellent transportation infrastructure, being approximately 95 miles from Chicago and connected by major highways including Interstate 80/90 (Indiana Toll Road) and U.S. Highway 31. This connectivity enhances access for regional and out-of-state visitors and supports consistent demand from both business and leisure travelers. South Bend International Airport (SBN – 5.5 miles) connects to six major hubs, including Chicago, Minneapolis, Atlanta, and Dallas/Fort Worth. The South Bend area hosts a variety of major employers contributing to economic stability. The University of Notre Dame (3,500 employees, enrollment of over 12,000 students, 2.2 miles away) is a significant influence on the local economy, drawing students, staff, and visitors from around the world. Other notable educational institutions include Indiana University South Bend (5.8 miles) and Saint Mary’s College (1.5 miles), which together serve a diverse student population and contribute to year-round hotel demand from students, faculty, and visitors. Additional major employers include Beacon Health System (2,500 employees, 3.0 miles away, 774 inpatient beds system-wide) and Honeywell Aerospace (800 employees, 5.1 miles away), both of which drive business travel and support the local economy. Birch Hill Suites offers a prime location near some of South Bend’s most iconic attractions, providing guests with easy access to the city’s top shopping, dining, and entertainment destinations. Just 3.7 miles away, University Park Mall and Heritage Square feature a variety of retail and dining options, while the Michiana Antique Mall (3.9 miles) offers a unique shopping experience. The Century Center Events Center (3.5 miles) hosts conferences, conventions, and large-scale events, attracting a diverse range of visitors year-round. History enthusiasts will enjoy the Studebaker National Museum (4.1 miles), while families can visit the Potawatomi Zoo (5.5 miles) or catch a game at Four Winds Field at Coveleski Stadium (4.1 miles). Additionally, the Morris Performing Arts Center (3.5 miles) is a hub for live performances, concerts, and cultural events. A transformative $350 million mixed-use development is poised to become one of the largest in South Bend’s history. This ambitious project, led by Memorial Hospital and set to break ground in the coming years, will span two city blocks and feature a blend of commercial, retail, and residential spaces, with completion expected by 2028. Positioned as a catalytic development, it is set to drive significant economic growth and urban renewal in downtown South Bend, creating a vibrant destination for both residents and visitors. In August, the hotel recorded a twelve-month occupancy rate of 70.5%, achieving an occupancy penetration index of 141%. This performance follows a three-year average occupancy rate of 68.8%, corresponding to an occupancy penetration index of 119%. These results offer a potential investor the opportunity to implement strategic pricing adjustments, thereby enhancing top-line revenue and driving overall profitability. The hotel generated $1.27 million in gross revenue, yielding a net operating income (NOI) of $371,000. This translates to a 29.2% NOI margin, inclusive of a 4% replacement reserve. For potential investors, this high NOI margin underscores the property’s effective cost management, offering enhanced profitability, increased cash flow, and stronger financial returns.