Hotel-Motel

Motel 6 Indianapolis - South

4585 S Harding St, Indianapolis, IN 46217

Listing Price: $2,795,000

Cap Rate
7.53%
Number of Rooms
74
RevPAR
$32
Gross SF
15,549
Price/Room
$37,770
RRM
3.16
Price/Gross SF
$179.75
Year Built
1984

Investment Overview

Marcus & Millichaps National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Motel 6 Indianapolis - South. The G6 hospitality-branded hotel is priced at $2,795,000 or $37,770 price per room. Priced at a 3.16 room revenue multiplier based on January 2019 trailing 12-month revenues, this hospitality asset boasts strong revenues and has established itself in the market. The hotel is positioned near the intersection of Loop 465 and South Harding Street, 10 miles southeast of Indianapolis International Airport.

This two-story, 74-room hotel presents a new investor the opportunity to acquire a cash-flowing asset below replacement cost located within the Indianapolis metropolitan statistical area (MSA). An investor, looking to act as an owner-operator, can maximize profits through a reduction in management costs for the property. The hotel is equipped with spacious guest rooms, vending machines, and in-room flat-screen televisions.

Over the past 12 months ending January 2020, the hotel has exceeded $880,000 in room revenue and above $210,000 in net-operating income after interest, taxes, depreciation, and amortization; this equates to approximately 24 percent of total revenue after debt service. With a strong focus on increasing the hotels operational efficiencies, a new investor can see a significant boost in hotel performance and increase in the hotels EBITDA. The property has out-performed the market competitive set in RevPAR since 2019, reaching a RevPAR penetration index of 137 percent.

The expenses include provisions for a four percent reserve for capital replacement. The hotel is offered fee simple, unencumbered by a management contract and debt.

Investment Highlights

  • 137 Percent RevPAR Index Compared to the Competitive Set
  • Operational Upside for Prospective Hands-On Owner-Operator Investor
  • 74-Room, Exterior Corridor, Economy Hotel Built in 1984
  • Located 10 Miles from Indianapolis International Airport
  • Priced Significantly Below Replacement Cost at $37,770 Per Key
  • Absentee Owner

Exclusively Listed By

Broker of Record

  • Josh Caruana

    First Vice President/Regional Manager

    License(s): IN: RB14034355

    Indiana

Hotel-Motel

Motel 6 Indianapolis - South

Listing Price: $2,795,000

Cap Rate
7.53%
Number of Rooms
74
RevPAR
$32
Gross SF
15,549
Price/Room
$37,770
RRM
3.16
Price/Gross SF
$179.75
Year Built
1984

Investment Highlights

  • 137 Percent RevPAR Index Compared to the Competitive Set
  • Operational Upside for Prospective Hands-On Owner-Operator Investor
  • 74-Room, Exterior Corridor, Economy Hotel Built in 1984
  • Located 10 Miles from Indianapolis International Airport
  • Priced Significantly Below Replacement Cost at $37,770 Per Key
  • Absentee Owner

Investment Overview

Marcus & Millichaps National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Motel 6 Indianapolis - South. The G6 hospitality-branded hotel is priced at $2,795,000 or $37,770 price per room. Priced at a 3.16 room revenue multiplier based on January 2019 trailing 12-month revenues, this hospitality asset boasts strong revenues and has established itself in the market. The hotel is positioned near the intersection of Loop 465 and South Harding Street, 10 miles southeast of Indianapolis International Airport.

This two-story, 74-room hotel presents a new investor the opportunity to acquire a cash-flowing asset below replacement cost located within the Indianapolis metropolitan statistical area (MSA). An investor, looking to act as an owner-operator, can maximize profits through a reduction in management costs for the property. The hotel is equipped with spacious guest rooms, vending machines, and in-room flat-screen televisions.

Over the past 12 months ending January 2020, the hotel has exceeded $880,000 in room revenue and above $210,000 in net-operating income after interest, taxes, depreciation, and amortization; this equates to approximately 24 percent of total revenue after debt service. With a strong focus on increasing the hotels operational efficiencies, a new investor can see a significant boost in hotel performance and increase in the hotels EBITDA. The property has out-performed the market competitive set in RevPAR since 2019, reaching a RevPAR penetration index of 137 percent.

The expenses include provisions for a four percent reserve for capital replacement. The hotel is offered fee simple, unencumbered by a management contract and debt.

Exclusively Listed By

Broker of Record

  • Josh Caruana

    First Vice President/Regional Manager

    License(s): IN: RB14034355

    Indiana

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