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Hotel-Motel

Red Apple Motel

416 N 1st St, Yakima, WA 98901

Listing Price: $2,300,000

Cap Rate
7.72%
Number of Rooms
58
RevPAR
$21
Price/Room
$39,655
RRM
5.11
Year Built
1955

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 Apple Motel in Yakima, Washington (‘Hotel’ or ‘Property’). The independent Hotel is offered for sale at $2,300,000 or $39,655 per key. Yakima, Washington is a city in and the county seat of Yakima County, Washington, the State’s eleventh-largest city by population. The city is situated in Yakima Valley, a productive agricultural region noted for apples, wine, and hop production. As of 2019, Yakima Valley produced 73 percent of the hops grown in the United States. The City of Yakima has invested over $12 million in downtown redevelopment, in hopes to revitalize the area near the Subject Property. The Hotel sits on 1.26 acres off 1st Street, which runs north-south through downtown Yakima and is adjacent to Interstate 82. This excellent downtown location allows the Property to benefit from tourism and leisure travel. Wedding venues and wineries are plentiful in the area, contributing to overnight room demand. The Hotel is located near Wilridge Vineyard (7.1 miles), Naches Heights Vineyard (9.6 miles), Bale Breaker Brewing Company (5.3 miles), Bonair Winery (20.8 miles), and Portteus Winery (26.1 miles). Additionally, Johnson Orchards (3.7 miles), Cowiche Canyon Trail (7.2 miles), Yakima Valley Museum (2.3 miles), and Yakima Convention Center (1.0 miles), all of which boost hospitality demand in the area. This offering presents a new investor the opportunity to acquire a value-add Asset well below replacement costs. In 2020, the Subject Property posted a RevPAR of $21.28, which equates to a 66.5 percent RevPAR penetration index compared to the market RevPAR of $32. A new operator can implement better revenue management strategies to improve RevPAR and market penetration, increasing overall value. The Hotel maintains management living quarters, making this investment ideal for an experienced owner-operator.

Investment Highlights

  • 2-Story, 58-Room, Exterior-Corridor Hotel
  • Priced Below Replacement Cost at $39,655 Per Key
  • Located in Yakima's Downtown Area, Near the City's $12 Million Redevelopment Plan
  • Close Proximity to Most Popular Hospitality Demand Generators in Yakima
  • Opportunity for a New Investor to Improve RevPAR and Market Penetration by Implementing Strategic Revenue Management Strategies
  • Hotel Includes 1,000 Square Foot Owner's Living Quarters

Exclusively Listed By

Broker of Record

  • Joel Deis

    First Vice President/Regional Manager

    (206) 826-5700

    License(s) WA: 25469

    Washington

Hotel-Motel

Red Apple Motel

Listing Price: $2,300,000

Cap Rate
7.72%
Number of Rooms
58
RevPAR
$21
Price/Room
$39,655
RRM
5.11
Year Built
1955

Investment Highlights

  • 2-Story, 58-Room, Exterior-Corridor Hotel
  • Priced Below Replacement Cost at $39,655 Per Key
  • Located in Yakima's Downtown Area, Near the City's $12 Million Redevelopment Plan
  • Close Proximity to Most Popular Hospitality Demand Generators in Yakima
  • Opportunity for a New Investor to Improve RevPAR and Market Penetration by Implementing Strategic Revenue Management Strategies
  • Hotel Includes 1,000 Square Foot Owner's 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 Apple Motel in Yakima, Washington (‘Hotel’ or ‘Property’). The independent Hotel is offered for sale at $2,300,000 or $39,655 per key. Yakima, Washington is a city in and the county seat of Yakima County, Washington, the State’s eleventh-largest city by population. The city is situated in Yakima Valley, a productive agricultural region noted for apples, wine, and hop production. As of 2019, Yakima Valley produced 73 percent of the hops grown in the United States. The City of Yakima has invested over $12 million in downtown redevelopment, in hopes to revitalize the area near the Subject Property. The Hotel sits on 1.26 acres off 1st Street, which runs north-south through downtown Yakima and is adjacent to Interstate 82. This excellent downtown location allows the Property to benefit from tourism and leisure travel. Wedding venues and wineries are plentiful in the area, contributing to overnight room demand. The Hotel is located near Wilridge Vineyard (7.1 miles), Naches Heights Vineyard (9.6 miles), Bale Breaker Brewing Company (5.3 miles), Bonair Winery (20.8 miles), and Portteus Winery (26.1 miles). Additionally, Johnson Orchards (3.7 miles), Cowiche Canyon Trail (7.2 miles), Yakima Valley Museum (2.3 miles), and Yakima Convention Center (1.0 miles), all of which boost hospitality demand in the area. This offering presents a new investor the opportunity to acquire a value-add Asset well below replacement costs. In 2020, the Subject Property posted a RevPAR of $21.28, which equates to a 66.5 percent RevPAR penetration index compared to the market RevPAR of $32. A new operator can implement better revenue management strategies to improve RevPAR and market penetration, increasing overall value. The Hotel maintains management living quarters, making this investment ideal for an experienced owner-operator.

Exclusively Listed By

Broker of Record

  • Joel Deis

    First Vice President/Regional Manager

    (206) 826-5700

    License(s): WA: 25469

    Washington

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