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Hotel-Motel

Red Roof Inn Holton

115 US Highway 75, Holton, KS 66436

Listing Price: $1,600,000

Cap Rate
15.07%
Number of Rooms
50
RevPAR
$27
Price/Room
$32,000
RRM
3.21
Year Built
1966

Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Division is pleased to present for sale to qualified investors the Red Roof Inn Holton (‘Hotel’ or ‘Property’). The Hotel is offered at $1,600,000 or $32,000 per key. Holton, Kansas is positioned in the northeast part of the state, 30 miles north of Topeka and 95 miles northwest of Kansas City. The Hotel is ideally located off Highway 75, which records the highest traffic rates in Holton at 9,240 cars per day; this sought-after location allows the Hotel to increase revenues from an excellent mix of leisure and business demand generators. The Property is a short distance from Prairie Lake, Banner Creek Reserve, Perry Lake, and Nebo State Fishing Lake and Wildlife Area; allowing visitors to fish and explore a range of Kansas’ best nature areas. Additionally, the Hotel is nearby the Prairie Brand Casino (11.7 miles), Sac and Fox Casino (17.1 miles), Golden Eagle Casino (19.8 miles), and Jackson County Museum (0.9 miles). In 2019, the Hotel underwent a period of renovations which improved the property’s value and occupancy through 2020, when it recorded the highest occupancy percentage in the last three years at 55.35 percent, an increase of 64 percent compared to 2019. The growth in occupancy led to an exceptional year in 2020, the Hotel achieved total revenues greater than $609,000 and managed a healthy EBITDA of 48.6 percent of total revenues, which translates to just above $296,000. Furthermore, the Property includes a three-bedroom, two-bathroom living quarters, making this investment an ideal opportunity for a hands-on-owner-operator. Current expenses include provisions for a 4 percent capital replacement reserve.

Investment Highlights

  • Priced Below Replacement Cost at $32,000 Per Key
  • Two-Story, 50-Room, Interior and Exterior Corridor Hotel Built in 1966 and Renovated in 2019
  • Minimal PIP Expected for New Investor
  • Exceptional Net Operating Income of 48.6 Percent or $296,000
  • Revenues Trending Upwards
  • Includes a Three-Bedroom, Two-Bathroom Living Quarters

Exclusively Listed By

Broker of Record

  • Colby Haugness

    First Vice President Investments

    (816) 410-1010

    License(s) KS: 00241410

    Kansas

Listing Price: $1,600,000

Cap Rate
15.07%
Number of Rooms
50
RevPAR
$27
Price/Room
$32,000
RRM
3.21
Year Built
1966

Investment Highlights

  • Priced Below Replacement Cost at $32,000 Per Key
  • Two-Story, 50-Room, Interior and Exterior Corridor Hotel Built in 1966 and Renovated in 2019
  • Minimal PIP Expected for New Investor
  • Exceptional Net Operating Income of 48.6 Percent or $296,000
  • Revenues Trending Upwards
  • Includes a Three-Bedroom, Two-Bathroom Living Quarters

Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Division is pleased to present for sale to qualified investors the Red Roof Inn Holton (‘Hotel’ or ‘Property’). The Hotel is offered at $1,600,000 or $32,000 per key. Holton, Kansas is positioned in the northeast part of the state, 30 miles north of Topeka and 95 miles northwest of Kansas City. The Hotel is ideally located off Highway 75, which records the highest traffic rates in Holton at 9,240 cars per day; this sought-after location allows the Hotel to increase revenues from an excellent mix of leisure and business demand generators. The Property is a short distance from Prairie Lake, Banner Creek Reserve, Perry Lake, and Nebo State Fishing Lake and Wildlife Area; allowing visitors to fish and explore a range of Kansas’ best nature areas. Additionally, the Hotel is nearby the Prairie Brand Casino (11.7 miles), Sac and Fox Casino (17.1 miles), Golden Eagle Casino (19.8 miles), and Jackson County Museum (0.9 miles). In 2019, the Hotel underwent a period of renovations which improved the property’s value and occupancy through 2020, when it recorded the highest occupancy percentage in the last three years at 55.35 percent, an increase of 64 percent compared to 2019. The growth in occupancy led to an exceptional year in 2020, the Hotel achieved total revenues greater than $609,000 and managed a healthy EBITDA of 48.6 percent of total revenues, which translates to just above $296,000. Furthermore, the Property includes a three-bedroom, two-bathroom living quarters, making this investment an ideal opportunity for a hands-on-owner-operator. Current expenses include provisions for a 4 percent capital replacement reserve.

Exclusively Listed By

Broker of Record

  • Colby Haugness

    First Vice President Investments

    (816) 410-1010

    License(s): KS: 00241410

    Kansas

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