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Hotel-Motel

Econo Lodge Redgranite

717 E Bannerman Ave, Redgranite, WI 54970

Listing Price: $1,250,000

Cap Rate
6.25%
Number of Rooms
41
RevPAR
$25
Price/Room
$30,488
RRM
3.48
Year Built
2000

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 Econo Lodge Redgranite (‘Hotel’ or ‘Property’). The Choice Hotels International-branded Hotel is offered at $1,250,000 or $30,488 per key. The Econo Lodge Redgranite is a 41-room, two-story Hotel stationed at 717 East Bannerman Avenue, just off Highway 21. This Hotel features an indoor pool and indoor Whirlpool, meeting space, and copy and fax services. Spacious guest rooms and suites offer a flat-screen television, a work desk, and an ironing board. Redgranite, Wisconsin is in central Wisconsin, about 115 miles north of Milwaukee, Wisconsin, 90 miles north of Madison, Wisconsin, and 75 miles south of Green Bay, Wisconsin. The Hotel benefits from its strategic highway location, which offers excellent visibility and accessibility from the busiest thoroughfare in the city. The Choice Hotels International-branded Hotel is the only franchised Property in Redgranite’s city limits, presenting unrivaled control over the hospitality market in the area. Local room demand can be attributed to key business and leisure services such as the Redgranite Correctional Institution (1.4 miles), CHN Medical Center (11.4 miles), Pearl Lake (3.5 miles) and Nordic Ski Mountain (10 miles). In 2019, the limited-service Hotel recorded room revenues of over $300,000 and a net-operating income above $109,000, or 33.9% as a percentage of total revenues, after a 4% capital replacement reserve and a 3% management fee reserve. Although RevPAR has continued to steadily increase year-over-year, the Hotel has historically underperformed the STR-competitive set. A new investor has the opportunity to implement better revenue management strategies to increase daily rates and improve the Hotel’s RevPAR, increasing market penetration and overall profitability.

Investment Highlights

  • Two-Story, 41-Room, Interior-Corridor, Economy Hotel Built in 2000
  • Priced Below Replacement Cost at $30,488 per Key
  • Highway Location that Offers Excellent Visibility and Easy Access to Multiple Demand Generators
  • Only Franchised Hotel in Redgranite, Wisconsin
  • Steady Increases in RevPAR Year-Over-Year with an Opportunity for a New Investor to Further Increase Daily Rates through Strategic Revenue Management Strategies

Exclusively Listed By

Broker of Record

  • Todd Lindblom

    Vice President/Regional Manager

    (262) 364-1964

    License(s) WI: 56163-90

    Wisconsin

Hotel-Motel

Econo Lodge Redgranite

Listing Price: $1,250,000

Cap Rate
6.25%
Number of Rooms
41
RevPAR
$25
Price/Room
$30,488
RRM
3.48
Year Built
2000

Investment Highlights

  • Two-Story, 41-Room, Interior-Corridor, Economy Hotel Built in 2000
  • Priced Below Replacement Cost at $30,488 per Key
  • Highway Location that Offers Excellent Visibility and Easy Access to Multiple Demand Generators
  • Only Franchised Hotel in Redgranite, Wisconsin
  • Steady Increases in RevPAR Year-Over-Year with an Opportunity for a New Investor to Further Increase Daily Rates through Strategic Revenue Management Strategies

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 Econo Lodge Redgranite (‘Hotel’ or ‘Property’). The Choice Hotels International-branded Hotel is offered at $1,250,000 or $30,488 per key. The Econo Lodge Redgranite is a 41-room, two-story Hotel stationed at 717 East Bannerman Avenue, just off Highway 21. This Hotel features an indoor pool and indoor Whirlpool, meeting space, and copy and fax services. Spacious guest rooms and suites offer a flat-screen television, a work desk, and an ironing board. Redgranite, Wisconsin is in central Wisconsin, about 115 miles north of Milwaukee, Wisconsin, 90 miles north of Madison, Wisconsin, and 75 miles south of Green Bay, Wisconsin. The Hotel benefits from its strategic highway location, which offers excellent visibility and accessibility from the busiest thoroughfare in the city. The Choice Hotels International-branded Hotel is the only franchised Property in Redgranite’s city limits, presenting unrivaled control over the hospitality market in the area. Local room demand can be attributed to key business and leisure services such as the Redgranite Correctional Institution (1.4 miles), CHN Medical Center (11.4 miles), Pearl Lake (3.5 miles) and Nordic Ski Mountain (10 miles). In 2019, the limited-service Hotel recorded room revenues of over $300,000 and a net-operating income above $109,000, or 33.9% as a percentage of total revenues, after a 4% capital replacement reserve and a 3% management fee reserve. Although RevPAR has continued to steadily increase year-over-year, the Hotel has historically underperformed the STR-competitive set. A new investor has the opportunity to implement better revenue management strategies to increase daily rates and improve the Hotel’s RevPAR, increasing market penetration and overall profitability.

Exclusively Listed By

Broker of Record

  • Todd Lindblom

    Vice President/Regional Manager

    (262) 364-1964

    License(s): WI: 56163-90

    Wisconsin

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