Investment Overview

Marcus & Millichap has been chosen to exclusively market for sale the Quality Inn Conversion, a hospitality property ideally located off Interstate 5 in Stockton, California. The hotel, currently an Econo lodge, has been approved by Choice Hotels to be converted to a Quality Inn and potentially dual-branded with Suburban Extended-Stay as well. Property amenities include a seasonal outdoor pool, complimentary coffee in lobby and guest laundry facilities. Renovated in 2024, nearly all of the work to convert the property is completed. To finalize the conversion process, Choice Hotels is requiring that the pylon signage be replaced, along with the guest room showers being modernized to brand standards (replace shower pan and add tile). The property owners are in possession of the new shower materials, and the current in-house maintenance team is in process of completing the renovations. The hotel could remain a Quality Inn, or could also be converted to a dual brand Quality Inn/Suburban Extended-Stay hotel. Any portion of the property that could be converted to Suburban Extended-Stay would require two consecutive guest rooms being merged into one Suburban suite. For example, the hotel currently consists of 124 guest rooms. If 24 rooms were converted to Suburban Extended-Stay at a 2:1 ratio, 100 rooms of combined Quality Inn/Suburban Extended-Stay would remain. The Quality Inn Conversion represents the opportunity to acquire a hotel with significant operational and revenue management upside in a strong market with several demand drivers. Our Pro Forma analysis assumes buyer will take advantage of operational and revenue management upside along with Property Improvement Plan (PIP) related to Quality Inn Conversion.