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Hotel-Motel

Travelodge by Wyndham Ogallala

201 Stagecoach Trail, Ogallala, NE 69153

Listing Price: $2,850,000

Cap Rate
9.82%
Number of Rooms
100
RevPAR
$26
Price/Room
$28,500
RRM
3.06
Year Built
1969

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 Travelodge Ogallala (‘Hotel’ or ‘Property’). The Wyndham-branded Hotel is offered at $2,850,000 or $28,500 per key. This two-story, 100-room Hotel is positioned, with excellent visibility, at the intersection of Highway 61 and Interstate 80, which accounts for over 28,000 cars per day combined. This sought-after location is less than 10 miles Nebraska’s largest lake, Lake McConaughy, that covers 35,700 acres and brings thousands of visitors yearly. Ogallala is also home to Lake Ogallala (10.3 miles), Front Street Museum and Restaurant (1.0 mile), and Searle Field Airport KOGA (3.1 miles). The Hotel has undergone renovations totaling more than $470 thousand dollars including updates to the rooms, exterior and lobby. In 2019, the economy Hotel brought in over $950 thousand of revenues and maintained about 25 percent net operating income which translates to $238 thousand in EBITDA after a 4 percent capital replacement reserve. The Hotel has historically underperformed the STR-defined market competitive set at an average of 53 percent RevPAR penetration index for the last three years. Additionally, a further look at current expenses shows inefficiencies in operations. An opportunity exists for a new investor to increase the value of the asset by repositioning the Hotel to increase RevPAR penetration and decrease expenses through better revenue management and cost control strategies. 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

  • Two-Story, 100-Room, Interior Corridor, Economy Hotel Renovated in 2009
  • Priced Below Replacement Cost at $28,500 Per Key
  • Less than 10 Miles from Lake McConaughy, Nebraska's Largest Lake
  • Offers Significant Upside to Increase Room Revenues to be Competitive with the Market
  • Value-Add Opportunity for a New Investor to Increase Market Penetration
  • Fee Simple Offering, Unencumbered by a Management Contract or Debt

Broker of Record

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9700

    License(s) NE: 20200223

    Nebraska

Hotel-Motel

Travelodge by Wyndham Ogallala

Listing Price: $2,850,000

Cap Rate
9.82%
Number of Rooms
100
RevPAR
$26
Price/Room
$28,500
RRM
3.06
Year Built
1969

Investment Highlights

  • Two-Story, 100-Room, Interior Corridor, Economy Hotel Renovated in 2009
  • Priced Below Replacement Cost at $28,500 Per Key
  • Less than 10 Miles from Lake McConaughy, Nebraska's Largest Lake
  • Offers Significant Upside to Increase Room Revenues to be Competitive with the Market
  • Value-Add Opportunity for a New Investor to Increase Market Penetration
  • Fee Simple Offering, Unencumbered by a Management Contract or Debt

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 Travelodge Ogallala (‘Hotel’ or ‘Property’). The Wyndham-branded Hotel is offered at $2,850,000 or $28,500 per key. This two-story, 100-room Hotel is positioned, with excellent visibility, at the intersection of Highway 61 and Interstate 80, which accounts for over 28,000 cars per day combined. This sought-after location is less than 10 miles Nebraska’s largest lake, Lake McConaughy, that covers 35,700 acres and brings thousands of visitors yearly. Ogallala is also home to Lake Ogallala (10.3 miles), Front Street Museum and Restaurant (1.0 mile), and Searle Field Airport KOGA (3.1 miles). The Hotel has undergone renovations totaling more than $470 thousand dollars including updates to the rooms, exterior and lobby. In 2019, the economy Hotel brought in over $950 thousand of revenues and maintained about 25 percent net operating income which translates to $238 thousand in EBITDA after a 4 percent capital replacement reserve. The Hotel has historically underperformed the STR-defined market competitive set at an average of 53 percent RevPAR penetration index for the last three years. Additionally, a further look at current expenses shows inefficiencies in operations. An opportunity exists for a new investor to increase the value of the asset by repositioning the Hotel to increase RevPAR penetration and decrease expenses through better revenue management and cost control strategies. Current expenses include provisions for a 4 percent capital replacement reserve. The Hotel is offered fee simple, unencumbered by a management contract or debt.

Broker of Record

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9700

    License(s): NE: 20200223

    Nebraska

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