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Hotel-Motel

Welcome Suites Fort Smith (Formerly Holiday Inn Express)

6813 Phoenix Avenue, Fort Smith, AR 72903

Listing Price: $3,695,000

Cap Rate
7.66%
Number of Rooms
63
Price/Room
$58,651
Year Built
2002

Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Group is pleased to present for sale to qualified investors the Welcome Suites in Fort Smith, Arkansas. The independent hotel is offered at $3,695,000 or $58,651 per room. This three-story, 63-room hotel was built in 2002 as a Holiday Inn Express & Suites on 1.47 acres just off Interstate 540, which boasts a daily traffic count of over 51,000. Located less than a mile from the Fort Smith Regional Airport and near companies such as Trane (3.3 miles), ArcBest Corporation (5.2miles), Georgia – Pacific (6.6 miles), and Planters Peanuts (5.1 miles); the property is poised to take advantage of the various business travel demand generators in the area. Furthermore, the property offers new investors the opportunity for several conversions; for additional information about conversion options, contact the listing agent. The independent hotel recently lost its flag with InterContinental Hotels Group (IHG) in February of 2021. The hotel has recorded annual gross revenues greater than $1.725 million between 2017 to 2019. Operationally, the hotel has maintained a positive net-operating income averaging over 15 percent for the last four years. The hotel has outperformed the STR market competitive set RevPAR since 2017; in 2019, the hotel achieved a 118 percent RevPAR Penetration Index. Current expenses include provisions for a four percent capital replacement reserve. The hotel is offered fee simple, unencumbered by a management contract, franchise, or debt.

Investment Highlights

  • Priced Below Replacement Cost at $58,651 per Key
  • Three-Story, 63-Room Hotel Originally Built in 2002 as a Holiday Inn Express & Suites
  • Outperformed STR Market Competitive Set Since 2017
  • Unencumbered by Management Contract, Franchise, and Debt
  • Several Conversion Opportunities Available; for Additional Information about Conversion Options, Contact Agent

Exclusively Listed By

Broker of Record

  • Anne Williams

    First Vice President Investments

    (901) 486-4376

    License(s) AR: PB00066390

    Arkansas

Hotel-Motel

Welcome Suites Fort Smith (Formerly Holiday Inn Express)

Listing Price: $3,695,000

Cap Rate
7.66%
Number of Rooms
63
Price/Room
$58,651
Year Built
2002

Investment Highlights

  • Priced Below Replacement Cost at $58,651 per Key
  • Three-Story, 63-Room Hotel Originally Built in 2002 as a Holiday Inn Express & Suites
  • Outperformed STR Market Competitive Set Since 2017
  • Unencumbered by Management Contract, Franchise, and Debt
  • Several Conversion Opportunities Available; for Additional Information about Conversion Options, Contact Agent

Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Group is pleased to present for sale to qualified investors the Welcome Suites in Fort Smith, Arkansas. The independent hotel is offered at $3,695,000 or $58,651 per room. This three-story, 63-room hotel was built in 2002 as a Holiday Inn Express & Suites on 1.47 acres just off Interstate 540, which boasts a daily traffic count of over 51,000. Located less than a mile from the Fort Smith Regional Airport and near companies such as Trane (3.3 miles), ArcBest Corporation (5.2miles), Georgia – Pacific (6.6 miles), and Planters Peanuts (5.1 miles); the property is poised to take advantage of the various business travel demand generators in the area. Furthermore, the property offers new investors the opportunity for several conversions; for additional information about conversion options, contact the listing agent. The independent hotel recently lost its flag with InterContinental Hotels Group (IHG) in February of 2021. The hotel has recorded annual gross revenues greater than $1.725 million between 2017 to 2019. Operationally, the hotel has maintained a positive net-operating income averaging over 15 percent for the last four years. The hotel has outperformed the STR market competitive set RevPAR since 2017; in 2019, the hotel achieved a 118 percent RevPAR Penetration Index. Current expenses include provisions for a four percent capital replacement reserve. The hotel is offered fee simple, unencumbered by a management contract, franchise, or debt.

Exclusively Listed By

Broker of Record

  • Anne Williams

    First Vice President Investments

    (901) 486-4376

    License(s): AR: PB00066390

    Arkansas

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