Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's Hospitality Division is pleased to present for sale to qualified investors the Best Western Plus Owensboro (‘Hotel’ or ‘Property’) located in Owensboro, Kentucky. The Best Western Plus-affiliated Hotel is offered at $9,000,000 or $142,857 per key. The Best Western Plus Owensboro is a three-story hotel with 63 rooms, located at 1018 Goetz Drive in Owensboro, Kentucky. The Hotel is located off Bypass 60 and maintains various common area amenities include a heated indoor pool, convenience store/sundry, meeting room, breakfast area, fitness center, business center, and coin laundry facility. The hotel has been recognized with multiple accolades, including the MK Guertin Award (2025), Champion Award for RevPAR (2025), Quality Assurance Award (2025), and the Chairman's Award for ranking in the Top 20% for Quality Assurance (2024). The property is positioned for strategic capital improvements planned for 2025, including a new standing seam metal roof and LED mirror upgrades, with total investment expected to be in the range of $275,000. These enhancements will strengthen long-term durability, improve guest experience, and support overall property value. Between year-end 2024 and the twelve months ending in October 2025, the hotel experienced a notable 20 percent increase in room revenue. This trend presents several advantages for potential buyers, including additional capital for renovations and enhanced cash flow. The hotel boasts a strong RevPAR penetration index of 167 percent for the twelve months ending in October 2025, signaling robust competitive performance and attractive long-term value for potential buyers. The hotel is attractively priced at a Cap Rate of 12.6 percent, offering investors a compelling opportunity to acquire the asset at a conservative valuation with significant upside potential. Owensboro, Kentucky anchors the Owensboro, KY Metropolitan Statistical Area, home to more than 113,000 residents and a diverse economic base. The city benefits from a central location along the Ohio River with highway and rail connectivity, a revitalized riverfront, and convention infrastructure including the 102,000-square-foot Owensboro Convention Center (4.0 miles) and the 1,479-seat RiverPark Center (3.9 miles). These assets, combined with healthcare, higher education, manufacturing, and cultural tourism, make the market a well-rounded lodging destination. The hotel is ideally located on high-traffic Frederica Street, surrounded by national restaurants and daily-use retail within walking distance, including Texas Roadhouse, Chili’s, Panera Bread, Chick-fil-A, McDonald’s, and several coffee franchises such as Dutch Bros Coffee, 7Brew, and Scooter’s Coffee. Churchill Downs’ $100 million Owensboro Racing & Gaming (10.4 miles) facility opened in 2025, and the Kentucky Sound Stage (1.2 miles), a state-of-the-art film and television production complex further enhances regional entertainment appeal. Future developments poised to expand demand drivers include Malibu Jack’s, a 109,000-square-foot indoor entertainment facility at Town Square Mall, and Club One, a 90,000-square-foot gym and family entertainment complex, both less than a mile from the hotel and not yet open. A new Publix, Boot Barn, Buckle, Old Navy, Carter’s, Sierra Trading Post, and HomeGoods are scheduled to open six miles away by late 2025 and into 2026, anchored by the Kroger Marketplace at Gateway Commons. A 90,000-square-foot indoor sports complex less than four miles from the hotel is slated to open in 2026, expected to attract regional tournaments and group demand. Nearby industrial growth includes the City of Owensboro’s 121-acre land development for future industrial users (3.5 miles away), Swedish Match’s (5.6 miles) $232 million expansion (2025), UniFirst’s (2.6 miles) $28 million expansion (2026), RL Carriers’ $25 million warehouse investment and Mizkan America’s (5.0 miles) $156 million expansion (2025). Collectively, these projects are expected to stimulate both corporate and transient lodging demand in the years ahead. Owensboro also benefits from consistent institutional demand. Owensboro Health Regional Hospital (6.6 miles) is the city’s largest employer and a major referral center with specialty care, while Kentucky Wesleyan College (1.7 miles), Brescia University (3.3 miles), and Owensboro Community & Technical College (3.0 miles) contribute ongoing academic, event, and athletics-related visitation. The market’s leisure profile is further supported by the Bluegrass Music Hall of Fame & Museum (3.8 miles), ROMP Festival (9.4 miles), Smothers Park (3.9 miles), and the Green River Distilling Co. (5.3 miles), which create recurring weekend and seasonal demand.