Hotel-Motel

Best Western Plus South Hill Inn

101 Thompson St, La Crosse, VA 23950

Listing Price: $3,700,000

Cap Rate
10.09%
Number of Rooms
57
RevPAR
$53
Gross SF
26,226
Price/Room
$64,912
RRM
3.36
Price/Gross SF
$141.08
Year Built
1998

Investment Overview

Marcus & Millichap's National Hospitality Group, as an exclusive representative of the seller, is pleased to announce to qualified investors the Best Western Plus of South Hill / La Crosse, Virginia. The subject property is a 57-room, interior-corridor asset located immediately off Interstate 85 (23,010 VPD) and Route 58 (25,989 VPD).The property, built in 1998, sits on a 1.39-acre parcel and will be delivered with all rooms in rentable condition. Current ownership completed a full Property Improvement Plan in 2018, meaning no change-in-ownership PIP to an investor. The property is located in a Qualified Opportunity Zone and is in close proximity to the the brand new VCU Health Community Memorial Hospital.
The turn-key hotel asset is available at $4,200,000, a significant discount to replacement cost. The property is managed currently by the owner, an out-of-state investor who drives onto the property weekly to handle operations. An investor has the opportunity to owner-operate and live locally to reduce payroll, thus increasing their cash-on-cash return. Operationally, the property has seen moderate and steady increases in ADR and Occupancy as a result of the recently-completed Property Improvement Plan, though still operates at just a 77% RevPAR Index. Renovations to the entirety of the interior and exterior should help an investor justify ADR increases. Now that renovations are complete, these ADR increases will also be coupled with Occupancy increases, given that all rooms will be delivered renovated. An investor can expect to see significant traffic increases as a direct result of the opening of the new nearby hospital, described as a 167,000-square-foot state-of-the-art facility with 70 acute care beds. Demand generators in the area include tourism from Lake Gaston and the John H Kerr Dam & Reservior. Additionally, South Hill is home to the Tobacco Farm Life Museum, Model Traiin Museum, and the Virginia S Evans Doll Museum.

Investment Highlights

  • Located in Qualified Opportunity Zone
  • 57-Room Interior-Corridor Asset on 1.39 Acres of Land
  • Fee-Simple Interest in the Two-Story Hotel
  • Zero Change-In-Ownership PIP | Fully Renovated
  • 3 Miles from Brand-New VCU Health Community Memorial Hospital

Exclusively Listed By

Hotel-Motel

Best Western Plus South Hill Inn

Listing Price: $3,700,000

Cap Rate
10.09%
Number of Rooms
57
RevPAR
$53
Gross SF
26,226
Price/Room
$64,912
RRM
3.36
Price/Gross SF
$141.08
Year Built
1998

Investment Highlights

  • Located in Qualified Opportunity Zone
  • 57-Room Interior-Corridor Asset on 1.39 Acres of Land
  • Fee-Simple Interest in the Two-Story Hotel
  • Zero Change-In-Ownership PIP | Fully Renovated
  • 3 Miles from Brand-New VCU Health Community Memorial Hospital

Investment Overview

Marcus & Millichap's National Hospitality Group, as an exclusive representative of the seller, is pleased to announce to qualified investors the Best Western Plus of South Hill / La Crosse, Virginia. The subject property is a 57-room, interior-corridor asset located immediately off Interstate 85 (23,010 VPD) and Route 58 (25,989 VPD).The property, built in 1998, sits on a 1.39-acre parcel and will be delivered with all rooms in rentable condition. Current ownership completed a full Property Improvement Plan in 2018, meaning no change-in-ownership PIP to an investor. The property is located in a Qualified Opportunity Zone and is in close proximity to the the brand new VCU Health Community Memorial Hospital.
The turn-key hotel asset is available at $4,200,000, a significant discount to replacement cost. The property is managed currently by the owner, an out-of-state investor who drives onto the property weekly to handle operations. An investor has the opportunity to owner-operate and live locally to reduce payroll, thus increasing their cash-on-cash return. Operationally, the property has seen moderate and steady increases in ADR and Occupancy as a result of the recently-completed Property Improvement Plan, though still operates at just a 77% RevPAR Index. Renovations to the entirety of the interior and exterior should help an investor justify ADR increases. Now that renovations are complete, these ADR increases will also be coupled with Occupancy increases, given that all rooms will be delivered renovated. An investor can expect to see significant traffic increases as a direct result of the opening of the new nearby hospital, described as a 167,000-square-foot state-of-the-art facility with 70 acute care beds. Demand generators in the area include tourism from Lake Gaston and the John H Kerr Dam & Reservior. Additionally, South Hill is home to the Tobacco Farm Life Museum, Model Traiin Museum, and the Virginia S Evans Doll Museum.

Exclusively Listed By

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