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Hotel-Motel

Clarion Econo Lodge Broken Arrow

2600 N Aspen Ave, Broken Arrow, OK 74012

Listing Price: $7,200,000

Cap Rate
10.90%
Number of Rooms
187
RevPAR
$26
Price/Room
$38,503
RRM
4.10
Year Built
1985

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 Clarion/Econo Lodge Broken Arrow (‘Hotel’ or ‘Property’). The dual-branded Choice Hotels International-branded Hotel is offered at $7,200,000 or $38,503 per key. The Clarion/Econo Lodge Broken Arrow is a 187-room, four-story Hotel stationed at 2600 North Aspen Avenue, just off Highway 51. Comprised of 84 Econo Lodge-branded rooms and 103 Clarion-branded rooms and suites, the Hotel offers instant scale within the economy and upper-midscale asset classes. The Property includes a manager’s apartment and features several amenities shared by the two buildings, such as an exercise room, outdoor pool, laundry facilities, meeting and banquet rooms, business center, and restaurant and bar space, which brings in $10,000 of monthly lease income. Rooms and suites have refrigerators, microwaves, and flat-screen televisions. Furthermore, the Property underwent a full renovation in 2018, presenting minimum PIP at transaction for a new owner. Broken Arrow, Oklahoma, is the largest suburb of Tulsa, Oklahoma, about 120 miles east of Oklahoma City, Oklahoma and 190 miles from Wichita, Kansas and Springfield, Missouri. The Hotel’s proximity to some of the city’s popular demand generators allows it to take full advantage of the prominent industries within the local economy. The region is known for its energy, entertainment, and manufacturing industries and attracts over nine million visitors annually. Tulsa is home to one Fortune 1000 company, Dollar Thrifty Automotive Group (7.2 miles), and two Fortune 500 companies, Oneok (13.4 miles) and Williams Companies (12.5 miles). Broken Arrow’s most notable employers include FlightSafety International (2.8 miles), FedEx Ground (4 miles), Blue Bell Creameries (4.9 miles), Windstream Communications (0.7 miles), and Saint Francis Health Systems (5.4 miles). Entertainment demand drivers for the city include one of the Philbrook Museum of Art (11.4 miles), the Gilcrease Museum (15.8 miles), the Woody Guthrie Center (13.3 miles), Tulsa Air and Space Museum & Planetarium (13.6 miles), and the Oklahoma Aquarium (10.5 miles). The dual-branded Hotel has realized a surge in revenues through the trailing twelve-month period ending October 2021. In this period, the Hotel recorded over $1.76 million in room revenues, which represents a 23 percent increase compared to year-end 2019 room revenues. Additionally, the Hotel secured an operating income of over $784 thousand or 41 percent of total revenues through the twelve months ending October 2021, after a four percent capital replacement reserve. The strong operations present an opportunity for a new investor to acquire a well-maintained asset with minimal PIP and collect exceptional cash flows.

Investment Highlights

  • Four-Story, 187-Room, Dual-Branded Hotel within the Tulsa Metropolitan Statistical Area
  • Priced Below Replacement Cost at $38,503 Per Key
  • Highly Visible and Easily Accessible from Highway 51
  • Situated Near Tulsa's Most Notable Business and Leisure Demand Generators
  • Exceptionally Maintained with Minimal to No PIP Expected at Transaction
  • Room Revenue Growth of 23 Percent through Trailing Twelve-Month Period Ending October 2021 Compared to Year-End 2019 Room Revenues

Exclusively Listed By

Broker of Record

  • Mark R. McCoy

    Regional Manager

    (817) 932-6100

    License(s) OK: 181981

    Oklahoma

Financing By

Hotel-Motel

Clarion Econo Lodge Broken Arrow

Listing Price: $7,200,000

Cap Rate
10.90%
Number of Rooms
187
RevPAR
$26
Price/Room
$38,503
RRM
4.10
Year Built
1985

Investment Highlights

  • Four-Story, 187-Room, Dual-Branded Hotel within the Tulsa Metropolitan Statistical Area
  • Priced Below Replacement Cost at $38,503 Per Key
  • Highly Visible and Easily Accessible from Highway 51
  • Situated Near Tulsa's Most Notable Business and Leisure Demand Generators
  • Exceptionally Maintained with Minimal to No PIP Expected at Transaction
  • Room Revenue Growth of 23 Percent through Trailing Twelve-Month Period Ending October 2021 Compared to Year-End 2019 Room Revenues

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 Clarion/Econo Lodge Broken Arrow (‘Hotel’ or ‘Property’). The dual-branded Choice Hotels International-branded Hotel is offered at $7,200,000 or $38,503 per key. The Clarion/Econo Lodge Broken Arrow is a 187-room, four-story Hotel stationed at 2600 North Aspen Avenue, just off Highway 51. Comprised of 84 Econo Lodge-branded rooms and 103 Clarion-branded rooms and suites, the Hotel offers instant scale within the economy and upper-midscale asset classes. The Property includes a manager’s apartment and features several amenities shared by the two buildings, such as an exercise room, outdoor pool, laundry facilities, meeting and banquet rooms, business center, and restaurant and bar space, which brings in $10,000 of monthly lease income. Rooms and suites have refrigerators, microwaves, and flat-screen televisions. Furthermore, the Property underwent a full renovation in 2018, presenting minimum PIP at transaction for a new owner. Broken Arrow, Oklahoma, is the largest suburb of Tulsa, Oklahoma, about 120 miles east of Oklahoma City, Oklahoma and 190 miles from Wichita, Kansas and Springfield, Missouri. The Hotel’s proximity to some of the city’s popular demand generators allows it to take full advantage of the prominent industries within the local economy. The region is known for its energy, entertainment, and manufacturing industries and attracts over nine million visitors annually. Tulsa is home to one Fortune 1000 company, Dollar Thrifty Automotive Group (7.2 miles), and two Fortune 500 companies, Oneok (13.4 miles) and Williams Companies (12.5 miles). Broken Arrow’s most notable employers include FlightSafety International (2.8 miles), FedEx Ground (4 miles), Blue Bell Creameries (4.9 miles), Windstream Communications (0.7 miles), and Saint Francis Health Systems (5.4 miles). Entertainment demand drivers for the city include one of the Philbrook Museum of Art (11.4 miles), the Gilcrease Museum (15.8 miles), the Woody Guthrie Center (13.3 miles), Tulsa Air and Space Museum & Planetarium (13.6 miles), and the Oklahoma Aquarium (10.5 miles). The dual-branded Hotel has realized a surge in revenues through the trailing twelve-month period ending October 2021. In this period, the Hotel recorded over $1.76 million in room revenues, which represents a 23 percent increase compared to year-end 2019 room revenues. Additionally, the Hotel secured an operating income of over $784 thousand or 41 percent of total revenues through the twelve months ending October 2021, after a four percent capital replacement reserve. The strong operations present an opportunity for a new investor to acquire a well-maintained asset with minimal PIP and collect exceptional cash flows.

Exclusively Listed By

Broker of Record

  • Mark R. McCoy

    Regional Manager

    (817) 932-6100

    License(s): OK: 181981

    Oklahoma

Financing By

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