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Hotel-Motel

Motel 6 Waukegan

31 N Green Bay Rd, Waukegan, IL 60085

Listing Price: $3,925,000

Cap Rate
8.70%
Number of Rooms
87
RevPAR
$31
Gross SF
41,920
Price/Room
$45,115
RRM
3.98
Price/Gross SF
$93.63
Year Built
1985

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 Waukegan. The G6 Hospitality-branded hotel is priced at $3,925,000 or $45,115 price per room with and additional grass pad behind the hotel that is included with the acquisition.

This two-story, 87-room hotel presents a new investor the opportunity to acquire a fully-stabilized hospitality asset within the Chicago 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 well-equipped with spacious guest rooms, vending machines, and in-room flat-screen televisions.

During 2019, the hotel exceeded $1,150,000 in room revenue while achieving a strong cash flow above 32 percent of total revenues; this equates to approximately $383,600 in net-operating income after interest, taxes, depreciation, and amortization. In 2020, the hotel managed to maintain an excellent cash flow that was above 34 percent of total revenues; or approximately $341,480. Property RevPAR has outperformed the market competitive set reaching a RevPAR penetration index of 105 percent in 2020 and 130 percent in 2019. The property taxes are also a highlight in Lake County ($75,000 to $85,000).

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

  • Hotel is Up by $85,000 in Year-to-Date Revenues
  • Three Miles from Six Flags Great America
  • 105 Percent RevPAR Index Compared to the Competitive Set in 2020
  • Well Cash-Flowing Asset with EBITDA Greater Than 34 Percent
  • Located Within the Chicago MSA
  • 87-Room, Interior Corridor, Economy Hotel

Exclusively Listed By

Listing Price: $3,925,000

Cap Rate
8.70%
Number of Rooms
87
RevPAR
$31
Gross SF
41,920
Price/Room
$45,115
RRM
3.98
Price/Gross SF
$93.63
Year Built
1985

Investment Highlights

  • Hotel is Up by $85,000 in Year-to-Date Revenues
  • Three Miles from Six Flags Great America
  • 105 Percent RevPAR Index Compared to the Competitive Set in 2020
  • Well Cash-Flowing Asset with EBITDA Greater Than 34 Percent
  • Located Within the Chicago MSA
  • 87-Room, Interior Corridor, Economy Hotel

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 Waukegan. The G6 Hospitality-branded hotel is priced at $3,925,000 or $45,115 price per room with and additional grass pad behind the hotel that is included with the acquisition.

This two-story, 87-room hotel presents a new investor the opportunity to acquire a fully-stabilized hospitality asset within the Chicago 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 well-equipped with spacious guest rooms, vending machines, and in-room flat-screen televisions.

During 2019, the hotel exceeded $1,150,000 in room revenue while achieving a strong cash flow above 32 percent of total revenues; this equates to approximately $383,600 in net-operating income after interest, taxes, depreciation, and amortization. In 2020, the hotel managed to maintain an excellent cash flow that was above 34 percent of total revenues; or approximately $341,480. Property RevPAR has outperformed the market competitive set reaching a RevPAR penetration index of 105 percent in 2020 and 130 percent in 2019. The property taxes are also a highlight in Lake County ($75,000 to $85,000).

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

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