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Hotel-Motel

Baymont by Wyndham Mobile/ I-65

930 West Interstate 65 Service Rd S, Mobile, AL 36609

Listing Price: $3,450,000

Cap Rate
5.09%
Number of Rooms
112
RevPAR
$24
Price/Room
$30,804
RRM
3.50
Year Built
1986

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 Baymont Mobile/I-65(‘Hotel’ or ‘Property’). The Wyndham-branded Hotel is offered at $3,450,000 or $30,804per key. The Baymont Mobile/I-65 is encumbered by a land lease agreement, for more information, please contact the listing agent. The Baymont Mobile/I-65 is a 112-room, two-story Hotel stationed at 930 West Interstate 65, at the busy intersection of Airport Boulevard and I-65. This Hotel features an outdoor pool, business center, and exercise room. Spacious guest rooms and suites offer a flat-screen television, a work desk, and an ironing board. Mobile, Alabama is on the Alabama coast, partially bordered by Mobile Bay and the Gulf of Mexico. The region is known for its aerospace, steel, shipbuilding, retail, services, construction, medicine, and manufacturing. Mobile Metropolitan Area hosts Alabama’s only deep-water port, the Port of Mobile, which is located less than 10 miles from the Property. The Hotel is 7.7 miles from Mobile Aeroplex at Brookley, an industrial complex and airport. It is the largest industrial and transportation complex in the region, having over70 companies, many of which are aerospace, spread over 1,650 acres. Notable employers at Brookley include Airbus North America Engineering, ST Aerospace Mobile, and Continental Motors. Other notable employers include Austal USA (12.2 miles), Infirmary Health Systems (5.8 miles), and the University of South Alabama (4.7 miles), which enrolls nearly 10,000 students. Leisure demand generators can be attributed to the Mobile Museum of Art (5.1 miles), Saenger Theatre (6.3 miles), Mobile Civic Convention Center and Arena (6.3 miles), and annual festivals such as BayFest (6.2 miles) and Greater Gulf State Fair (7.2 miles). In 2020, the limited-service Hotel recorded room revenues of nearly $1.075 million and a net operating income above $192 thousand, or 17.9 percent as a percentage of total revenues, after a four percent capital replacement reserve. The Hotel is currently underperforming the STR defined market competitive set in RevPAR. In the twelve-month period ending September 2021, RevPAR was recorded at $24.10 and set a 70 percent RevPAR penetration index. Although the Property is in good condition, a minor renovation would present a substantial value-add opportunity and assist new ownership significantly in garnering real rate growth and increase RevPAR penetration.

Investment Highlights

  • Two-Story, 112-Room, Exterior-Corridor Hotel within the Mobile Metropolitan Area
  • Priced Below Replacement Cost at $30,804 Per Key
  • Highly Visible and Easily Accessible from Interstate 65
  • Close Proximity to Major Employers and Leisure Demand Generators
  • Value-Add Opportunity to Increase Daily Rates through Strategic Renovations

Broker of Record

  • Eddie Greenhalgh

    First Vice President Investments

    (205) 510-9200

    License(s) AL: 0000882980

    Alabama

Hotel-Motel

Baymont by Wyndham Mobile/ I-65

Listing Price: $3,450,000

Cap Rate
5.09%
Number of Rooms
112
RevPAR
$24
Price/Room
$30,804
RRM
3.50
Year Built
1986

Investment Highlights

  • Two-Story, 112-Room, Exterior-Corridor Hotel within the Mobile Metropolitan Area
  • Priced Below Replacement Cost at $30,804 Per Key
  • Highly Visible and Easily Accessible from Interstate 65
  • Close Proximity to Major Employers and Leisure Demand Generators
  • Value-Add Opportunity to Increase Daily Rates through Strategic Renovations

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 Baymont Mobile/I-65(‘Hotel’ or ‘Property’). The Wyndham-branded Hotel is offered at $3,450,000 or $30,804per key. The Baymont Mobile/I-65 is encumbered by a land lease agreement, for more information, please contact the listing agent. The Baymont Mobile/I-65 is a 112-room, two-story Hotel stationed at 930 West Interstate 65, at the busy intersection of Airport Boulevard and I-65. This Hotel features an outdoor pool, business center, and exercise room. Spacious guest rooms and suites offer a flat-screen television, a work desk, and an ironing board. Mobile, Alabama is on the Alabama coast, partially bordered by Mobile Bay and the Gulf of Mexico. The region is known for its aerospace, steel, shipbuilding, retail, services, construction, medicine, and manufacturing. Mobile Metropolitan Area hosts Alabama’s only deep-water port, the Port of Mobile, which is located less than 10 miles from the Property. The Hotel is 7.7 miles from Mobile Aeroplex at Brookley, an industrial complex and airport. It is the largest industrial and transportation complex in the region, having over70 companies, many of which are aerospace, spread over 1,650 acres. Notable employers at Brookley include Airbus North America Engineering, ST Aerospace Mobile, and Continental Motors. Other notable employers include Austal USA (12.2 miles), Infirmary Health Systems (5.8 miles), and the University of South Alabama (4.7 miles), which enrolls nearly 10,000 students. Leisure demand generators can be attributed to the Mobile Museum of Art (5.1 miles), Saenger Theatre (6.3 miles), Mobile Civic Convention Center and Arena (6.3 miles), and annual festivals such as BayFest (6.2 miles) and Greater Gulf State Fair (7.2 miles). In 2020, the limited-service Hotel recorded room revenues of nearly $1.075 million and a net operating income above $192 thousand, or 17.9 percent as a percentage of total revenues, after a four percent capital replacement reserve. The Hotel is currently underperforming the STR defined market competitive set in RevPAR. In the twelve-month period ending September 2021, RevPAR was recorded at $24.10 and set a 70 percent RevPAR penetration index. Although the Property is in good condition, a minor renovation would present a substantial value-add opportunity and assist new ownership significantly in garnering real rate growth and increase RevPAR penetration.

Broker of Record

  • Eddie Greenhalgh

    First Vice President Investments

    (205) 510-9200

    License(s): AL: 0000882980

    Alabama

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