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Hotel-Motel

Quality Inn Cleveland

807 N Davis Ave, Cleveland, MS 38732

Listing Price: $3,500,000

Cap Rate
8.86%
Number of Rooms
57
RevPAR
$46
Price/Room
$61,404
RRM
3.65
Year Built
1998

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 Cleveland (‘Hotel’ or ‘Property’) in Cleveland, Mississippi. The Choice Hotels International-branded Hotel is offered at $2,500,000 or $21,368 per key. The Quality Inn Cleveland is a 57-room, three-story Hotel stationed at 807 North Davis Avenue. This Hotel features an outdoor pool, vending machines, guest laundry services, and business center. Spacious guest rooms offer a flat-screen television, microwave, refrigerator, a work desk, and an ironing board. Cleveland, Mississippi, is the heart of the Mississippi Delta, 124 miles north of Jackson, Mississippi and 115 miles south of Memphis, Tennessee. With the city’s popular room generators in proximity to the Property, this Hotel benefits3 from many key industries of the city. Cleveland has a large commercial economy, supported by many restaurants, stores, and services. Delta State University, located less than 2.5 miles from the Hotel, enrolls over 2,300 students and hosts a variety of sporting events and scholastic seminars. Other notable demand generators in the area include Dockery Farms (1.4 miles), the Grammy Museum–Mississippi (1.8 miles), and the Bologna Performing Arts Center (2.1 miles). The city is known as the birthplace of blues music, which attracts thousands of blues enthusiasts for concerts and conventions each year. In 2020, the limited-service Hotel recorded room revenues of over $1.01 million and a net operating income above $332 thousand, or 32.6 percent as a percentage of total revenues, after a 3 percent management fee reserve. The STR-defined competitive set has shown a continuous upwards trend in RevPAR year-over-year, highlighting in an increase of 8.8 percent from 2019 to 2020. Over the trailing 12-month period, the Hotel has effectively resisted the downward pressure on hospitality performance during the downturn led by the COVID-19 pandemic. A prospective buyer should be able to capitalize on the expected increase in RevPAR from better revenue management, not only benefiting from increased market share but also higher NOI ?ow-through.

Investment Highlights

  • Three-Story, 57-Room, Midscale Hotel
  • Priced Below Replacement Cost at $21,368 Per Key
  • Excellent Visibility and Easily Accessible from Highway 61
  • Located Close to Cleveland's Most Notable Demand Generators Including Delta State University, Dockery Farms, and The Grammy Museum – Mississippi
  • RevPAR Trending Upwards Increasing 8.8 Percent in 2020 Compared to 2019

Exclusively Listed By

Broker of Record

  • Mickey Davis

    Senior Associate

    (901) 620-3600

    License(s) MS: 15586

    Mississippi

Financing By

Hotel-Motel

Quality Inn Cleveland

Listing Price: $3,500,000

Cap Rate
8.86%
Number of Rooms
57
RevPAR
$46
Price/Room
$61,404
RRM
3.65
Year Built
1998

Investment Highlights

  • Three-Story, 57-Room, Midscale Hotel
  • Priced Below Replacement Cost at $21,368 Per Key
  • Excellent Visibility and Easily Accessible from Highway 61
  • Located Close to Cleveland's Most Notable Demand Generators Including Delta State University, Dockery Farms, and The Grammy Museum – Mississippi
  • RevPAR Trending Upwards Increasing 8.8 Percent in 2020 Compared to 2019

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 Cleveland (‘Hotel’ or ‘Property’) in Cleveland, Mississippi. The Choice Hotels International-branded Hotel is offered at $2,500,000 or $21,368 per key. The Quality Inn Cleveland is a 57-room, three-story Hotel stationed at 807 North Davis Avenue. This Hotel features an outdoor pool, vending machines, guest laundry services, and business center. Spacious guest rooms offer a flat-screen television, microwave, refrigerator, a work desk, and an ironing board. Cleveland, Mississippi, is the heart of the Mississippi Delta, 124 miles north of Jackson, Mississippi and 115 miles south of Memphis, Tennessee. With the city’s popular room generators in proximity to the Property, this Hotel benefits3 from many key industries of the city. Cleveland has a large commercial economy, supported by many restaurants, stores, and services. Delta State University, located less than 2.5 miles from the Hotel, enrolls over 2,300 students and hosts a variety of sporting events and scholastic seminars. Other notable demand generators in the area include Dockery Farms (1.4 miles), the Grammy Museum–Mississippi (1.8 miles), and the Bologna Performing Arts Center (2.1 miles). The city is known as the birthplace of blues music, which attracts thousands of blues enthusiasts for concerts and conventions each year. In 2020, the limited-service Hotel recorded room revenues of over $1.01 million and a net operating income above $332 thousand, or 32.6 percent as a percentage of total revenues, after a 3 percent management fee reserve. The STR-defined competitive set has shown a continuous upwards trend in RevPAR year-over-year, highlighting in an increase of 8.8 percent from 2019 to 2020. Over the trailing 12-month period, the Hotel has effectively resisted the downward pressure on hospitality performance during the downturn led by the COVID-19 pandemic. A prospective buyer should be able to capitalize on the expected increase in RevPAR from better revenue management, not only benefiting from increased market share but also higher NOI ?ow-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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