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Hotel-Motel

Motel 6 Indianapolis

4585 S Harding St, Indianapolis, IN 46217

Listing Price: $2,595,000

Cap Rate
12.43%
Number of Rooms
72
RevPAR
$35
Gross SF
15,549
Price/Room
$36,042
RRM
2.84
Price/Gross SF
$166.89
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 has a list price of $2,595,000 or $36,042 price per key. Priced at a 3.03 room revenue multiplier based on year end 2020 revenues, the subject property is being sold below replacement cost and is priced in the market to transact. The hotel sits at the intersection of Loop 465 and South Harding Street, 10 miles southeast of Indianapolis International Airport. Notable features are its spacious guest rooms, in-room flat-screen televisions, an on-site laundry facility, and vending machines.

This two-story, 74-room hotel presents a new investor the opportunity to acquire a cash-flowing asset located within the Indianapolis metropolitan statistical area (MSA). An experienced investor can maximize profits through aggressive revenue management strategies and additional marketing.

From 2019-2020, the subject property has achieved an average room revenue greater than $850,000, has consistently outperformed the Market RevPAR, and has maintained an occupancy rate greater than 69 percent. Unaffected by the 2020 downturn, the property has outperformed market comparables achieving a RevPAR penetration greater than 160 percent.

Operationally, the hotel has maintained healthy cashflow with a pass-through Net Operating Income of approximately 29 percent of total revenue after debt service. The net-operating income after interest, taxes, depreciation, and amortization equates to more than $240,000.

Current expenses include provisions for a four percent capital replacement reserve. The subject property is fee simple real estate, unencumbered by a management contract or debt.

Investment Highlights

  • Priced Significantly Below Replacement Cost at $36,042 per Key
  • 72-Room, Exterior Corridor, Economy Hotel
  • Located 10 Miles from Indianapolis International Airport
  • 160 Percent RevPAR Index Compared to the Competitive Set
  • Operational Upside for Prospective Hands-On Owner-Operator Investor
  • Unaffected by Coronavirus, Revenues In-Line with 2019

Exclusively Listed By

Broker of Record

  • Josh Caruana

    First Vice President/Regional Manager

    (317) 218-5300

    License(s) IN: RB14034355

    Indiana

Listing Price: $2,595,000

Cap Rate
12.43%
Number of Rooms
72
RevPAR
$35
Gross SF
15,549
Price/Room
$36,042
RRM
2.84
Price/Gross SF
$166.89
Year Built
1984

Investment Highlights

  • Priced Significantly Below Replacement Cost at $36,042 per Key
  • 72-Room, Exterior Corridor, Economy Hotel
  • Located 10 Miles from Indianapolis International Airport
  • 160 Percent RevPAR Index Compared to the Competitive Set
  • Operational Upside for Prospective Hands-On Owner-Operator Investor
  • Unaffected by Coronavirus, Revenues In-Line with 2019

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 has a list price of $2,595,000 or $36,042 price per key. Priced at a 3.03 room revenue multiplier based on year end 2020 revenues, the subject property is being sold below replacement cost and is priced in the market to transact. The hotel sits at the intersection of Loop 465 and South Harding Street, 10 miles southeast of Indianapolis International Airport. Notable features are its spacious guest rooms, in-room flat-screen televisions, an on-site laundry facility, and vending machines.

This two-story, 74-room hotel presents a new investor the opportunity to acquire a cash-flowing asset located within the Indianapolis metropolitan statistical area (MSA). An experienced investor can maximize profits through aggressive revenue management strategies and additional marketing.

From 2019-2020, the subject property has achieved an average room revenue greater than $850,000, has consistently outperformed the Market RevPAR, and has maintained an occupancy rate greater than 69 percent. Unaffected by the 2020 downturn, the property has outperformed market comparables achieving a RevPAR penetration greater than 160 percent.

Operationally, the hotel has maintained healthy cashflow with a pass-through Net Operating Income of approximately 29 percent of total revenue after debt service. The net-operating income after interest, taxes, depreciation, and amortization equates to more than $240,000.

Current expenses include provisions for a four percent capital replacement reserve. The subject property is fee simple real estate, unencumbered by a management contract or debt.

Exclusively Listed By

Broker of Record

  • Josh Caruana

    First Vice President/Regional Manager

    (317) 218-5300

    License(s): IN: RB14034355

    Indiana

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