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Hotel-Motel

Super 8 Beaver Dam

711 Park Avenue, Beaver Dam, WI 53916

Listing Price: $1,895,000

Cap Rate
9.73%
Number of Rooms
50
RevPAR
$28
Gross SF
36,090
Price/Room
$37,900
RRM
3.69
Price/Gross SF
$52.51
Year Built
1987

Investment Overview

Marcus & Millichap's National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Super 8 Beaver Dam. The Wyndham-branded hotel is priced at $1,895,000 or $37,900 price per room. An established property, constructed in 1987, is located along the Highway 33 corridor, near the interchange with Highway 151.

Priced at 9.73 percent capitalization rate, this three-story, 50-room hotel presents a new investor the opportunity to acquire a stabilized hospitality asset being sold at a price below replacement cost. 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 a business center, self-service laundry, and community-wide internet. Furthermore, the hotel is perfectly positioned in an Opportunity Zone and can provide upside to a potential investor in a 1031 exchange. Opportunity Zones are a new community development program established by Congress to encourage long-term investments in low-income urban and rural communities nationwide. The Opportunity Zones program provides a tax incentive for investors to reinvest their unrealized capital gains into opportunity funds that are dedicated to investing in Opportunity Zones, designated by the chief executives of every U.S. state and territory.

Operationally, the hotel achieved $514,214 in room revenue for 2020, resulting in a net-operating income of approximately 35 percent of total revenue; this translates to about $184,290 before debt service. The property has performed in line with the competitive set in RevPAR, reaching a RevPAR penetration index of 109 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

  • 50-Room, Interior Corridor, Economy Hotel Built in 1987
  • Priced Significantly Below Replacement Cost at $37,900 Per Key
  • 45 Miles from Madison and 65 Miles from Milwaukee
  • 109 Percent RevPAR Index Compared to the Competitive Set
  • Operational Upside for Prospective Hands-On Owner-Operator Investor

Exclusively Listed By

Broker of Record

  • Todd Lindblom

    Vice President/Regional Manager

    License(s): WI: 56163-90

    Wisconsin

Listing Price: $1,895,000

Cap Rate
9.73%
Number of Rooms
50
RevPAR
$28
Gross SF
36,090
Price/Room
$37,900
RRM
3.69
Price/Gross SF
$52.51
Year Built
1987

Investment Highlights

  • 50-Room, Interior Corridor, Economy Hotel Built in 1987
  • Priced Significantly Below Replacement Cost at $37,900 Per Key
  • 45 Miles from Madison and 65 Miles from Milwaukee
  • 109 Percent RevPAR Index Compared to the Competitive Set
  • Operational Upside for Prospective Hands-On Owner-Operator Investor

Investment Overview

Marcus & Millichap's National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Super 8 Beaver Dam. The Wyndham-branded hotel is priced at $1,895,000 or $37,900 price per room. An established property, constructed in 1987, is located along the Highway 33 corridor, near the interchange with Highway 151.

Priced at 9.73 percent capitalization rate, this three-story, 50-room hotel presents a new investor the opportunity to acquire a stabilized hospitality asset being sold at a price below replacement cost. 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 a business center, self-service laundry, and community-wide internet. Furthermore, the hotel is perfectly positioned in an Opportunity Zone and can provide upside to a potential investor in a 1031 exchange. Opportunity Zones are a new community development program established by Congress to encourage long-term investments in low-income urban and rural communities nationwide. The Opportunity Zones program provides a tax incentive for investors to reinvest their unrealized capital gains into opportunity funds that are dedicated to investing in Opportunity Zones, designated by the chief executives of every U.S. state and territory.

Operationally, the hotel achieved $514,214 in room revenue for 2020, resulting in a net-operating income of approximately 35 percent of total revenue; this translates to about $184,290 before debt service. The property has performed in line with the competitive set in RevPAR, reaching a RevPAR penetration index of 109 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

  • Todd Lindblom

    Vice President/Regional Manager

    License(s): WI: 56163-90

    Wisconsin

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