Suburban Extended Stay Hotel Alamogordo

Hospitality for Sale
Catylist Listing ID: 30737533
Property Subtypes: Hotel
Number of Units: 58 Units
Building Size (RSF): See Agent
Gross Building Area: See Agent
Gross Land Area: 0.97 Acres
Sale Price: $2,350,000
Unit Price: $40,517.24 Per Unit
Property Use Type: Investment
Sale Terms: Cash to Seller
Cap Rate: 5.91%
Last Updated: 9/20/2021

Overview / Comments

- Priced Below Replacement Cost at $40,517 Per Key
- 58-Room, Exterior Corridor, Choice-Branded Hotel Built in 2011
- Ability for Hands-On-Owner-Operator to Decrease Expenses & Increase Net Operating Income
- Three Miles from New Mexico State University – Alamogordo and six miles from Alamogordo-White Sands Regional Airport
- Unencumbered by a Management Contract or Debt

As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Group is pleased to present for sale to qualified investors the Suburban Extended Stay Hotel in Alamogordo, New Mexico. The Choice-branded hotel is offered at $2,350,000 or $40,517 per key and sits on 0.97 acres in the lower central part of the state bordered by the Sacramento Mountains.
The hotel is positioned, with excellent visibility, off Highway 54 and is poised to take advantage of nearby leisure and business demand generators. New Mexico State University - Alamogordo is located less than three miles from the property and boasts many scholastic events throughout the year. The property is less than six miles from the Alamogordo-White Sands Regional Airport. Historically, the subject property has recorded total revenues over $625,000 and maintained a healthy cash flow shown by a net operating income averaging over 21% of
total revenues since 2018. Despite the market downturn in 2020, the hotel managed to record room revenues over $575,000 and a net operating income of about 20 percent of total revenues, which translates to approximately $116,555. Compared to the STR market comp set’s RevPar, the asset has continued to sustain a median RevPar shown by the recorded 96 percent penetration in 2019, offering further opportunity for rate escalation to position the property above its competition. Operating as an extended-stay hotel, a new owner can amplify returns through strategic cost control and expense management. Current expenses include provisions for a four percent capital replacement reserve. The hotel is offered fee simple, unencumbered by a management contract or debt.

Additional Details

Nearest MSA: Alamogordo
County: Otero
Tax ID/APN: R015857

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Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 3,303 26,788 33,112
Median Age: 35.92 39.65 39.12
Households: 1,421 11,356 13,972

Contact

Photograph of Listing Agent

Matthew Reeves

Marcus & Millichap CARNM CIE Member
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