Best Western Inn Russellville

$3,900,000

2326 North Arkansas Avenue, Russellville, AR 72802

Details

  • $3,900,000

Investment Overview:

Marcus & Millichap’s National Hospitality Group, as an exclusive broker, is pleased to offer for sale the Best Western Inn Russellville. The property is a 96-room, exterior corridor, two-story hotel located in Russellville, Arkansas, directly off of Arkansas Avenue near the intersection of Interstate 40.

The Best Western Inn Russellville is being offered at 10.62 percent cap rate based off the May 2017 trailing 12 months financials. Numerous university activities draw guests to the hotel and increase demand for lodging. In addition to close proximity to Tyson University and Arkansas Tech University, the hotel is also ideal for business travelers, including employees of the nuclear plant, state employees and truckers passing through. The property is situated right along scenic Lake Dardanelle, which is a hub for competitive fishing tournaments and a regular stop for over 8,000 recreational and competitive fisherman per year.

The hotel is situated on an owner-friendly land lease that has five-year options for the next 60 years.  The annual rent for the lease adds up to $53,892 per year but is partially offset by the hotel owner’s sublease to Colton’s Steak House & Grill, a nationally recognized four-star steakhouse with over 35 locations that subleases at about $29,000 per year.

Property Overview:

The Best Western Inn Russellville is a 96-room, exterior corridor, midscale hotel located in Russellville, Arkansas. The property was built in 1983 and features a metal roof and a brick exterior. The hotel is on a below-market 60-year land lease, and included in the leasehold sale is the adjacent Colton’s Steak House & Grill, which subleases to the hotel at around $29,000 per year. Common area amenities include an outdoor pool, laundry facilities, and ample large-vehicle parking.  The seller has recently completed the latest design review renovations mandated from Best Western.

Location Overview:

Russellville, Arkansas is a thriving town located less than one mile from Arkansas Tech University, which offers enrollment numbers of 10,000 students. The town is located between the Ozark Mountains and the Ouachita Mountains and is surrounded by four state parks with a dozen smaller parks within city limits. The hotel is minutes away from Lake Dardanelle State Park on the Arkansas River with 315 miles of beautiful shoreline, and the Petit Jean State Park is 30 miles away. Other area attractions include the Museum of Automobiles and Arkansas Nuclear One, the only nuclear power plant in Arkansas, just outside of Russellville. The town hosts the Pope County Fair at summers end, attracting 50,000 visitors, and downtown Russellville hosts a quarterly art walk, complete with food and live music. The hotel benefits greatly from scenic Lake Dardanelle’s attractions, which hosts over 50 competitive fishing tournaments and 8,000 anglers annually.

Anne Williams
Broker of Records
License: AR SA00066390

Agent for this listing

Steve Swenholt

Senior Associate, National Hospitality Group
Office: (512) 338-7826
Mobile: (972) 824-5483
Fax: (512) 338-7810
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