- Date added: Added 1 month ago
- Category: Hotel
- Type: Limited Service
- Status: For Sale
- Guestrooms: 80
- Bedrooms: 80
- Bathrooms: 82
- Half baths: 2
- Meeting space sq ft: 500
- Floors: 3
- Area, sq ft: 36723 sq ft
- Year built: 1996
- Year remodeled: 2009
- Price per sq ft: $147.77
- Price Per Key: $68,750.00
- Cap rate: 9.09%
- NOI: $683,715
- Occupancy: 58.2%
- Broker: Hotel Brokers of America
- Agent: Brian Brockman
- Agent Phone: 661-808-4998
- Agent Email: Deals@hbofamerica.com
- Website:: https://hotelbrokersinc.com/
The Hampton Inn is institutionally owned, and third party managed by one of the largest management companies in America making the hotel very inefficient in its operations and costs because a large company with many hotels is focused on making a little money for a lot of hotels. A new owner-operator will have a significant upside through the reduction of operating expenses and revenue upside from the completion of the PIP.
There is an opportunity to increase revenue and profitability with direct rate adjustment and revenue management. This hotel is significantly underperforming the competitive set because of the need to complete the forever young PIP and a new owner management group who will manage the hotel as a simple 80-unit Hampton Inn.
An obvious example is that an institutional management company is not able to provide the attention to detail that an owner-operator would. The Hampton is 3 of 7 in ADR, 5 of 7 in occupancy, and 4 of 7 in RevPAR. (Any Hampton Inn should be the market leader in all three categories). When considering this competitive set, all other hotels are inferior brands. Once the PIP is completed, the hotel will be in the top 2 hotels, if not the market leader for Wichita Kanas.
The Hampton Inn will receive a 10-year license from Hilton upon completion of the PIP.
Historically the hotel has exceeded $2M in revenue and over a 38% NOI. Upon completion of the Forever Young PIP, the hotel is poised to do a minimum of $2M to $2.2M in revenue making the hotel extremely profitable and a great asset for any discerning buyer.
The hotel is strategically located off I-35. Near businesses, schools, and attractions, including the YMCA complex, where many sporting events are held. Textron Aviation, Beach Craft Factory, and Airport are adjacent to the hotel. Mconnel Air Force base is only 5 miles away.
The hotel is Priced to sell as the current ownership is liquidating all its assets to diversify into other businesses.
Offered at $5,500,000 (3.95 X Revenue “After” the estimated $17,500 per room PIP) based on Existing revenue). After completion of the PIP, The Hotel will be at approx. 3.2 X once the revenue is back up to $2,100,000. The challenge is that a new Buyer will have to have sufficient down payment and management experience to overcome the challenge due to the poor Net Income the hotel currently shows based on the Institutional ownership and institutional management company.
Wichita is a Strong Stable market once the Hotel PIP is completed and properly managed will be a small gold mine for any discerning buyer.
- Priced to sell at $5,500,000
- Hilton Brand- Highly Sought After
- Significant Upside Potential
- PIP Estimated $20,000/Per Room
- 10-Year License Following Completion of PIP
- Strong, Stable Market
Conveniently right off I-35
- Cooling features: PTAC
- Heating features: PTAC
- Floor covering: Carpet, Concrete, Hard wood, Laminate, Linoleum/vinyl, Slate, Tile
- Basement: Unfinished
- Exterior material: Brick, Stone, Wood
- Roof: Asphalt, Built-up, Cement/concrete, Composition, Hurricane Impact Glass, Metal, Porte Co·chère, Shake/Shingle, Shingle, Slate, Stucco, Vinyl, Wood products
- Parking: Carport, Parking lot
Amenities & Features