HVS Brokerage & Advisory, as the sole and exclusive advisory firm to ownership, presents the opportunity to acquire the 121-key Americas Best Value Inn & Suites Fort Collins East at I-25, a limited-service hotel asset in Fort Collins, Colorado.
Fort Collins benefits from a diverse economy, spanning major technology and energy firms, a large university, a strong healthcare sector, and government offices. The hotel is currently owner-operated and will be sold without management encumbrances; moreover, it has strong in-place cash flow, having achieved a 49.3% gross operational profit (GOP) margin in 2022. The property is in good physical condition, resulting in a nominal change-of-ownership property improvement plan (PIP).
Furthermore, the property is favorably located off Exit 268 along Interstate 25 at its interchange with State Highway 14, offering easy access to multiple demand generators in the area and positioning it as an attractive option for business and leisure travelers visiting the region.
Strong-Performing Asset
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The hotel has performed well given the property’s current condition and guestroom matrix, as well as its facilities and amenities, relative to comparable economy hotels in the submarket. Per the STR Trend Report, the hotel achieved a 93.0% RevPAR penetration index in 2022.
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Based on the hotel’s 2022 net operating income (NOI), also known as EBITDA, of $726,129 the going-in capitalization rate based on current pricing guidance is an attractive 9.6%.
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The hotel’s revenue increased 14.6% from year-end 2021 to year-end 2022.
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The hotel’s year-to-date May 2023 data illustrate a consistent RevPAR trend, reflecting a 2.5% increase from the same period in the previous year.
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The hotel’s revenue reached $1,803,990 for calendar-year 2022.
For inquiries please visit here to execute the Confidentiality Agreement.