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Hotel-Motel

Econo Lodge St. Joseph

2723 Niles Avenue, St. Joseph, MI 49085

Listing Price: $1,295,000

Cap Rate
8.22%
Number of Rooms
36
RevPAR
$24
Price/Room
$35,972
RRM
4.14
Year Built
1960

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 Econo Lodge Saint Joseph. The Choice Hotels International -branded hotel is offered at $1,295,000 or $35,972 per key. This two-story, 36-room, exterior corridor hotel sits on 1.14 acres on the shores of Lake Michigan. The property is 32 miles from South Bend International Airport and is situated off Highway 63 (over 14,500 daily travelers), which offers easy access to many key demand drivers in the area, such as the shores of Lake Michigan and Silver Beach which is the third largest of the Great Lakes by surface area (1.9 miles), Lake Michigan College with over 4,600 students enrolled (5.7 miles), Saint Joseph River (6.2 Miles), Krasl Art Center (1.5 miles), and the Silver Beach Amusement Park and Carousel (2.3 miles). Furthermore, the property offers new investors the opportunity for several conversions; for additional information about conversion options, contact the listing agent. This hotel is ideal for an owner-operator and will include living quarters on the same parcel. Although the property has been well-maintained, a minimum property improvement plan is expected. In 2019, the property’s RevPAR was approximately $31, achieving over $415,000 of revenue. In the same period, this property has outperformed the STR-defined market competitive set and recorded 123 percent RevPAR penetration index. Currently, the hotel is penetrating the market with 93 percent RPI, and 136 percent ADR penetration. An opportunity exists for a new investor to implement tactical cost control and better revenue management strategies to increase overall profitability. Current expenses include provisions for a 4 percent capital replacement reserve. The hotel is offered fee simple, unencumbered by a management contract or debt.

Investment Highlights

  • Priced Below Replacement Cost at $35,972 per Key
  • Two-Story, 36-Room, Exterior Corridor, Economy Hotel and Living Quarters on the Same Parcel
  • Outperforming the STR Competitive Set with 123 Percent RevPAR Penetration Through 2019
  • Implementation of Improved Revenue and Cost Management Will Provide Upside
  • Thirty-Two Miles from South Bend International Airport
  • Several Conversion Opportunities Available; for Additional Information about Conversion Options, Contact Agent

Exclusively Listed By

Broker of Record

  • Steven Chaben

    Senior Vice President / Regional Manager

    (248) 415-2600

    License(s) MI: 6502387903

    Michigan

Listing Price: $1,295,000

Cap Rate
8.22%
Number of Rooms
36
RevPAR
$24
Price/Room
$35,972
RRM
4.14
Year Built
1960

Investment Highlights

  • Priced Below Replacement Cost at $35,972 per Key
  • Two-Story, 36-Room, Exterior Corridor, Economy Hotel and Living Quarters on the Same Parcel
  • Outperforming the STR Competitive Set with 123 Percent RevPAR Penetration Through 2019
  • Implementation of Improved Revenue and Cost Management Will Provide Upside
  • Thirty-Two Miles from South Bend International Airport
  • 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 Econo Lodge Saint Joseph. The Choice Hotels International -branded hotel is offered at $1,295,000 or $35,972 per key. This two-story, 36-room, exterior corridor hotel sits on 1.14 acres on the shores of Lake Michigan. The property is 32 miles from South Bend International Airport and is situated off Highway 63 (over 14,500 daily travelers), which offers easy access to many key demand drivers in the area, such as the shores of Lake Michigan and Silver Beach which is the third largest of the Great Lakes by surface area (1.9 miles), Lake Michigan College with over 4,600 students enrolled (5.7 miles), Saint Joseph River (6.2 Miles), Krasl Art Center (1.5 miles), and the Silver Beach Amusement Park and Carousel (2.3 miles). Furthermore, the property offers new investors the opportunity for several conversions; for additional information about conversion options, contact the listing agent. This hotel is ideal for an owner-operator and will include living quarters on the same parcel. Although the property has been well-maintained, a minimum property improvement plan is expected. In 2019, the property’s RevPAR was approximately $31, achieving over $415,000 of revenue. In the same period, this property has outperformed the STR-defined market competitive set and recorded 123 percent RevPAR penetration index. Currently, the hotel is penetrating the market with 93 percent RPI, and 136 percent ADR penetration. An opportunity exists for a new investor to implement tactical cost control and better revenue management strategies to increase overall profitability. Current expenses include provisions for a 4 percent capital replacement reserve. The hotel is offered fee simple, unencumbered by a management contract or debt.

Exclusively Listed By

Broker of Record

  • Steven Chaben

    Senior Vice President / Regional Manager

    (248) 415-2600

    License(s): MI: 6502387903

    Michigan

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