- Two-Story, 90-Room, Limited-Service, Best Western-Branded Hotel
- Expected to Trade Below Replacement Cost
- Excellent Highway Accessibility from Interstate 94
- Surrounded by a Multitude of Leisure Demand Generators such as Four Winds Casino and Blue Chip Casino, Along with New Buffalo Public Beach, Indiana Dunes State Park, Lighthouse Place Premium Outlets
- Trailing Twelve-Month June 2022 STR Report Recorded a 30 Percent RevPAR Penetration Index, Leaving a Substantial Value Add Opportunity for a New Owner
Investment Overview
As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Division is pleased to present for sale to qualified investors the SureStay Hotel New Buffalo (‘Hotel’ or ‘Property’). The Best Western-branded Hotel will be sold on a call for offers basis; for more information, please contact the listing agent.
SureStay New Buffalo is located at 11539 O’Brien Court in New Buffalo, Michigan, just off Interstate 94. The 90-room, two-story Property was built in 1988 and is situated on a 3.3-acre lot. Maintaining approximately 66,578 square feet of interior space, the Hotel provides a wide variety of common area amenities including a guest laundry facility, business center, pool table, putting green, electric vehicle charging, and parking that accommodates trucks and RVs.
New Buffalo is a popular resort town along the Lake Michigan shore and Indiana border with a proximal location to the Chicago Metropolitan Area. Primarily anchored by the avid tourism to the region, New Buffalo's economy is largely spurred by the Four Winds Casino Resort and Blue Chip Casino. Outside of these massive tourism generators, travelers looking to take advantage of the region’s natural beauty can visit the New Buffalo Public Beach, Indiana Dunes State Park, Friendship Botanic Gardens, and Ambler Flatwoods Nature Preserve. Those seeking out leisure activities can partake in a round at the Woodlands Course at Whittaker or go shopping at the Lighthouse Place Premium Outlets. Despite being a destination city for tourists, New Buffalo reports significant economic contributions from the education, arts, entertainment, and recreation industrial sectors. Furthermore, the manufacturing industry employs nearly 10% of the city’s population with Messer LLC and Walters-Dimmick Petroleum Incorporated persisting as major employers. Lastly, South Ben Airport is located less than 30 miles from the Hotel making this popular city readily accessible to those traveling great distances.
In 2021, the Hotel recorded room revenues of over $431 thousand, coupled with a net operating income flow-through of 19.3 percent of total revenue, which equates to over $83 thousand, after a four percent capital replacement reserve. Through twelve-month June 2022, occupancy was recorded at just 15.4 percent, a significant discount to market occupancy rates of 43.77 percent. An investor, adept in revenue management, can add significant value to this Property by increasing rooms sold; not only will this boost the Hotel’s RevPAR, but also magnify net operating income flow-through.
Broker of Record
Steve Chaben
Michigan
Lic #: 6502387903
