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Hotel-Motel

Quality Inn Marshall

204 Winston Drive, Marshall, MI 49068

Listing Price: $4,500,000

Cap Rate
3.13%
Number of Rooms
62
RevPAR
$33
Price/Room
$72,581
RRM
6.17
Year Built
1997

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 Quality Inn Marshall located in Marshall, Michigan (‘Hotel’ or ‘Property’). The Choice Hotels International-branded Hotel is offered at $4,500,000 or $75,000 per key. Marshall is situated in the south-central region of Michigan, 100 miles west of Detroit. The historic city is the county seat of Calhoun County and is included in the Battle Creek Metropolitan Statistical Area, which records a population of 134,310 according to the 2020 census. The Hotel sits on 2.02 acres at the Interstate 94 and 69 interchange, offering excellent visibility to over 42,946 vehicles per day. This strategic location allows easy access to a variety of demand generators in the area such as the Kellogg Arena (11.6 miles), American Museum of Magic (1.6 miles), and Binder Park Zoo (11.1 miles). The Kellogg Company, a major American multinational food manufacturing company, set up their World Headquarters less than 12 miles from the Property. This offering presents a new investor the chance to acquire the only midscale branded Hotel within the city limits. This value-add opportunity is owned by an absentee owner and is operating at 75 percent capacity. Additionally, the Hotel recently completed major renovations and is expected to gain in market share given the limited room supply. Historically, the Hotel has consistently underperformed the STR-defined market competitive set and posted an average RevPAR penetration index of 80 percent since 2018. In 2019, the Hotel achieved room revenues over $1.13 million and achieved a net-operating income of $411.2 thousand or 35.4 percent of gross revenues, after a four percent capital replacement reserve.

Investment Highlights

  • Two-Story, 60-Room, Midscale Hotel
  • Recently Completed Renovations in 2021
  • Strategic Location, with Excellent Visibility, at the Interchange of Interstates 94 and 69
  • Only Branded Midscale Property in Marshall City Limits
  • Absentee Operated at 75 Percent Occupancy
  • Healthy Net-Operating Income of 35.4 Percent of Gross Revenues in 2019
  • Offers a Significant Opportunity to Increase Market Penetration

Exclusively Listed By

Broker of Record

  • Steven Chaben

    Senior Vice President / Regional Manager

    (248) 415-2600

    License(s) MI: 6502387903

    Michigan

Listing Price: $4,500,000

Cap Rate
3.13%
Number of Rooms
62
RevPAR
$33
Price/Room
$72,581
RRM
6.17
Year Built
1997

Investment Highlights

  • Two-Story, 60-Room, Midscale Hotel
  • Recently Completed Renovations in 2021
  • Strategic Location, with Excellent Visibility, at the Interchange of Interstates 94 and 69
  • Only Branded Midscale Property in Marshall City Limits
  • Absentee Operated at 75 Percent Occupancy
  • Healthy Net-Operating Income of 35.4 Percent of Gross Revenues in 2019
  • Offers a Significant Opportunity to Increase Market Penetration

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 Quality Inn Marshall located in Marshall, Michigan (‘Hotel’ or ‘Property’). The Choice Hotels International-branded Hotel is offered at $4,500,000 or $75,000 per key. Marshall is situated in the south-central region of Michigan, 100 miles west of Detroit. The historic city is the county seat of Calhoun County and is included in the Battle Creek Metropolitan Statistical Area, which records a population of 134,310 according to the 2020 census. The Hotel sits on 2.02 acres at the Interstate 94 and 69 interchange, offering excellent visibility to over 42,946 vehicles per day. This strategic location allows easy access to a variety of demand generators in the area such as the Kellogg Arena (11.6 miles), American Museum of Magic (1.6 miles), and Binder Park Zoo (11.1 miles). The Kellogg Company, a major American multinational food manufacturing company, set up their World Headquarters less than 12 miles from the Property. This offering presents a new investor the chance to acquire the only midscale branded Hotel within the city limits. This value-add opportunity is owned by an absentee owner and is operating at 75 percent capacity. Additionally, the Hotel recently completed major renovations and is expected to gain in market share given the limited room supply. Historically, the Hotel has consistently underperformed the STR-defined market competitive set and posted an average RevPAR penetration index of 80 percent since 2018. In 2019, the Hotel achieved room revenues over $1.13 million and achieved a net-operating income of $411.2 thousand or 35.4 percent of gross revenues, after a four percent capital replacement reserve.

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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