Hotel-Motel

Motel 6 Chicago North Central – Arlington Heights

Listing Price: $5,195,000

Cap Rate
5.04%
Number of Rooms
145
RevPAR
$33
Gross SF
55,960
Price/Room
$35,828
RRM
3.00
Price/Gross SF
$92.83
Year Built
1987

Investment Overview

Marcus & Millichaps National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Motel 6 Chicago North Central Arlington Heights. The G6 Hospitality-branded hotel is priced at $5,195,000 or $35,828 price per room; this represents a three times multiple on March 2020 trailing 12-month room revenues. An opportunistic property, constructed in 1987, is located along Algonquin Road, near the intersection with Arlington Heights Road.

This two-story, 145-room hotel presents a new investor the opportunity to acquire a value-add asset within the Chicago Metropolitan Statistical Area (MSA). This corporately-owned hospitality asset is being sold at a price below replacement cost. An investor, looking to act as an owner-operator, can maximize profits through a reduction in management costs for the property as current ownership is absentee.

Operationally, the hotel achieved $1,731,222 in room revenue, resulting in a net-operating income of approximately 15 percent of total revenue; this translates to about$261,626 before debt service. Focusing on increasing the hotels operational efficiency, a new investor can see a significant boost in hotel performance and an increase in the hotels EBITDA. The property RevPAR has underperformed the market competitive set in ADR, through completion of the franchise property improvement plan a new investor is projected to see an increase in hotel room revenues.

The expenses include provisions for a four percent reserve for capital replacement. The hotel is offered fee simple, unencumbered by a management contract and debt.

Investment Highlights

  • 145-Room, Interior Corridor, Economy Hotel
  • Nine Miles from OHare International Airport
  • Priced Significantly Below Replacement Cost at $35,828 Per Key
  • Under-Performing Hotel RevPAR Index; Value-Add Opportunity
  • Significant Upside Potential Through Implementation of Strategic Cost Control
  • Operational Upside for Prospective Hands-On Owner-Operator Investor

Exclusively Listed By

Hotel-Motel

Motel 6 Chicago North Central – Arlington Heights

Listing Price: $5,195,000

Cap Rate
5.04%
Number of Rooms
145
RevPAR
$33
Gross SF
55,960
Price/Room
$35,828
RRM
3.00
Price/Gross SF
$92.83
Year Built
1987

Investment Highlights

  • 145-Room, Interior Corridor, Economy Hotel
  • Nine Miles from OHare International Airport
  • Priced Significantly Below Replacement Cost at $35,828 Per Key
  • Under-Performing Hotel RevPAR Index; Value-Add Opportunity
  • Significant Upside Potential Through Implementation of Strategic Cost Control
  • Operational Upside for Prospective Hands-On Owner-Operator Investor

Investment Overview

Marcus & Millichaps National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Motel 6 Chicago North Central Arlington Heights. The G6 Hospitality-branded hotel is priced at $5,195,000 or $35,828 price per room; this represents a three times multiple on March 2020 trailing 12-month room revenues. An opportunistic property, constructed in 1987, is located along Algonquin Road, near the intersection with Arlington Heights Road.

This two-story, 145-room hotel presents a new investor the opportunity to acquire a value-add asset within the Chicago Metropolitan Statistical Area (MSA). This corporately-owned hospitality asset is being sold at a price below replacement cost. An investor, looking to act as an owner-operator, can maximize profits through a reduction in management costs for the property as current ownership is absentee.

Operationally, the hotel achieved $1,731,222 in room revenue, resulting in a net-operating income of approximately 15 percent of total revenue; this translates to about$261,626 before debt service. Focusing on increasing the hotels operational efficiency, a new investor can see a significant boost in hotel performance and an increase in the hotels EBITDA. The property RevPAR has underperformed the market competitive set in ADR, through completion of the franchise property improvement plan a new investor is projected to see an increase in hotel room revenues.

The expenses include provisions for a four percent reserve for capital replacement. The hotel is offered fee simple, unencumbered by a management contract and debt.

Exclusively Listed By

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