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Hotel-Motel

Motel 6 Vicksburg

4137 I-20 Frontage Rd, Vicksburg, MS 39180

Listing Price: $2,500,000

Cap Rate
0.04%
Number of Rooms
117
RevPAR
$20
Price/Room
$21,368
RRM
2.92
Year Built
1971

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 Motel 6 Vicksburg (‘Hotel’ or ‘Property’) located in Vicksburg, Mississippi. The G6 Hospitality-branded Hotel is offered at $2,500,000 or $21,368 per key. The offering also includes an additional museum building located on an adjacent parcel. The Motel 6 Vicksburg is a 117-room, two-story Hotel stationed at 4137 I-20 Frontage Road, at the busy intersection of Interstate 20 and Highway 80. This Hotel features an outdoor pool, meeting and event space, vending machines, and guest laundry facilities. Spacious guest rooms offer a flat-screen television, a work desk, and an ironing board. Additional Amenities at the Property include the Mirror Room, one of the largest banquet / event spaces in Vicksburg,, the Jacques Sports Lounge, and the Jacques Cafe. Vicksburg, Mississippi is located on the Mississippi River on the border shared with Louisiana, about 40 miles west of Jackson, Mississippi. With the city's popular room generators in close proximity to the Property, this Hotel benefits from many key industries of the city. The region is known for its logistics, government, and entertainment industries and attracts over two million visitors annually. Two notable demand generators, the Port of Vicksburg, where over 14 million tons of freight is transported each year, and the U.S Army Engineer Research and Development Center have an economic impact on the state of more than $350 million annually. Entertainment demand drivers for the city include Ameristar (4.8 miles), Riverwalk Casinos (6.0 miles), and Bally’s Vicksburg Casino (6.4 miles). The U.S. Army Corps of Engineers and Tyson Foods, two of the city's largest employers are located approximately 2.5 and 12.4 miles from the Hotel respectively, and are prime revenue drivers for the surrounding area. Another major employer that is responsible for a significant portion of the workforce includes Merit Health – River Region (2.9 miles). Additional guest room generators in the area, like the annual Miss Mississippi Pageant and Parade that help bring revenue to the Hotel through an increase in transient business. In 2020, the limited-service Hotel recorded room revenues of over $930,000 and a net operating income above $91,400, or 9.7 percent as a percentage of total revenues, after a 3 percent management fee reserve. RevPAR has continued to steadily increase year-over-year, averaging over 11 percent from 2019 through July 2021. A prospective buyer should be able to capitalize on the anticipated increase in RevPAR from better revenue management, not only benefiting from increased market share but also higher NOI flow-through.

Investment Highlights

  • Two-Story, 117-Room, Exterior-Corridor Hotel with Most Recent Renovations Completed in 2016
  • Priced Below Replacement Cost at $21,368 Per Key
  • Easily Accessible and Highly Visible from the Busy Intersection of Interstate 20 and Highway 80
  • Situated Near the Port of Vicksburg, U.S. Army Engineer Research and Demand Center, Tyson Foods, Merit Health, and Ameristar Casino
  • Substantial Value Add Opportunity to Implement Better Revenue Management Strategies and Garner Significant RevPAR Growth
  • Owned and Remotely Operated by West Coast Based Absentee Owner

Exclusively Listed By

Broker of Record

  • Mickey Davis

    Senior Associate

    (901) 620-3600

    License(s) MS: 15586

    Mississippi

Financing By

Listing Price: $2,500,000

Cap Rate
0.04%
Number of Rooms
117
RevPAR
$20
Price/Room
$21,368
RRM
2.92
Year Built
1971

Investment Highlights

  • Two-Story, 117-Room, Exterior-Corridor Hotel with Most Recent Renovations Completed in 2016
  • Priced Below Replacement Cost at $21,368 Per Key
  • Easily Accessible and Highly Visible from the Busy Intersection of Interstate 20 and Highway 80
  • Situated Near the Port of Vicksburg, U.S. Army Engineer Research and Demand Center, Tyson Foods, Merit Health, and Ameristar Casino
  • Substantial Value Add Opportunity to Implement Better Revenue Management Strategies and Garner Significant RevPAR Growth
  • Owned and Remotely Operated by West Coast Based Absentee Owner

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 Motel 6 Vicksburg (‘Hotel’ or ‘Property’) located in Vicksburg, Mississippi. The G6 Hospitality-branded Hotel is offered at $2,500,000 or $21,368 per key. The offering also includes an additional museum building located on an adjacent parcel. The Motel 6 Vicksburg is a 117-room, two-story Hotel stationed at 4137 I-20 Frontage Road, at the busy intersection of Interstate 20 and Highway 80. This Hotel features an outdoor pool, meeting and event space, vending machines, and guest laundry facilities. Spacious guest rooms offer a flat-screen television, a work desk, and an ironing board. Additional Amenities at the Property include the Mirror Room, one of the largest banquet / event spaces in Vicksburg,, the Jacques Sports Lounge, and the Jacques Cafe. Vicksburg, Mississippi is located on the Mississippi River on the border shared with Louisiana, about 40 miles west of Jackson, Mississippi. With the city's popular room generators in close proximity to the Property, this Hotel benefits from many key industries of the city. The region is known for its logistics, government, and entertainment industries and attracts over two million visitors annually. Two notable demand generators, the Port of Vicksburg, where over 14 million tons of freight is transported each year, and the U.S Army Engineer Research and Development Center have an economic impact on the state of more than $350 million annually. Entertainment demand drivers for the city include Ameristar (4.8 miles), Riverwalk Casinos (6.0 miles), and Bally’s Vicksburg Casino (6.4 miles). The U.S. Army Corps of Engineers and Tyson Foods, two of the city's largest employers are located approximately 2.5 and 12.4 miles from the Hotel respectively, and are prime revenue drivers for the surrounding area. Another major employer that is responsible for a significant portion of the workforce includes Merit Health – River Region (2.9 miles). Additional guest room generators in the area, like the annual Miss Mississippi Pageant and Parade that help bring revenue to the Hotel through an increase in transient business. In 2020, the limited-service Hotel recorded room revenues of over $930,000 and a net operating income above $91,400, or 9.7 percent as a percentage of total revenues, after a 3 percent management fee reserve. RevPAR has continued to steadily increase year-over-year, averaging over 11 percent from 2019 through July 2021. A prospective buyer should be able to capitalize on the anticipated increase in RevPAR from better revenue management, not only benefiting from increased market share but also higher NOI flow-through.

Exclusively Listed By

Broker of Record

  • Mickey Davis

    Senior Associate

    (901) 620-3600

    License(s): MS: 15586

    Mississippi

Financing By

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