We are pleased to present a distressed opportunity to buy a 79 rooms interior hotel in Upstate New York which used to be Best Western with prior ownership and the current owner operated as Roadway Inn and then as an independent. Hotel is in good location in only less than a mile from State University of New York College of Agriculture and Technology.
Hotel is indoor corridor and full of amenities like indoor swimming pool, restaurant plus it has multiple lane bowling alley inside the hotel. Hotel has about 9.5 Acres of land.
Few years back Hotel was shut down and the fire broke at the hotel (when it was shut down) but according to the Owner fire was not substantial.
The hotel was bought by current ownership in 2016 and was approved for Ramada from Wyndham hotel subject to the franchisor PIP requirement, however, ownership chose to operate as a lower budget brand “Roadway Inn”.
Ramada Inn Franchise is willing to put the franchise subject to its PIP (Property Improvement Plan).
According to the owner, as Ramada hotel would do very well and projections are as below . There is an office by the hotel which was rented to a third party before the hotel was shut down and it was getting the rent of $ 50,000 from the tenant.
Hotel owner foresee the following performance as Ramada after conversion:
|1st Year of Operations||2nd Year of Operations||3rd Year of Operations|
|ADR||$70||$ 75||$ 77|
|Rev Par||$ 45.5||$ 51||$ 53.90|
|Hotel Revenues||$ 1,311,992||$ 1,470,585||$ 1,554,206|
|Miscellaneous||$ 15,000||$ 17,000||$ 18,000|
|Restaurant||$ 200,000||$ 220,000||$ 230,000|
|Gross Revenues||$ 1,526,992||$ 1,707,585||$1,802,206|
|Net Income||$ 458,097||$ 512,275||$ 540,661|
|Value of the hotel at 10% CAP*||$ 4,580,970||$ 5,122,750||$ 5,406,610|
|Net Income Margin||30%||30%||30%|
*value of the hotel has other variables as well
Currently hotel is shut down for last 4 years bank is willing to sell/negotiate the sale. Current outstanding note amount from the bank is around $ 2,700,000. For any new owner/investor this hotel would require the negotiated settlement with the bank.
Hotel is a promising opportunity subject to conversion of the hotel into the selected franchise by the new owner/investor with the required fix up. Since property has been shut down for few years it has been subject to Vandalism as well.