INVESTMENT HIGHLIGHTS
- Recently Renovated Hospitality Asset: Comprehensive Renovation Completed in 2022.
- Downtown Klamath Falls Location: Walkable to Restaurants, Shopping, Museums, and Entertainment.
- Extended-Stay Product Offering: Features Guestrooms with Kitchens and One-Bedroom Suites Cater to Long-Term Guests.
- Diverse Demand Base: Supported by Tourism, Healthcare, Education, Government, and Corporate Travel.
- Strong Healthcare Demand: Popular Choice for Traveling Nurses and Medical Professionals on Three-to Six-Month Assignments.
- Corporate Housing Demand: Frequently Utilized by Out-of-Town Companies Housing Employees for Multi-Week Projects.
- Premier Tourism Location: Convenient Gateway to Crater Lake National Park and Southern Oregon Recreation.
- Leisure Amenities Nearby: Close to Moore Park, Klamath Event Center, Museums, Bike Trails, and Outdoor Recreation.
- Adjacent Restaurant Acquisition Opportunity: Waffle Hut & Eatery Offered Separately for $1,000,000, Providing Additional Food-and-Beverage Potential.
- Flexible Restaurant Lease Structure: New Owner Has the Opportunity to Negotiate a Percentage Lease Between 6% and 10% for the Adjacent Waffle Hut & Eatery.
- Stable Long-Term Lodging Market: Supported by Year-Round Leisure, Healthcare, Extended-Stay, Educational, and Corporate Demand.
- $500 Million Energy Infrastructure Investment: Benefits From the Nearby Klamath Falls Energy Center, a $500 Million Power Generation Facility That Drives Consistent Extended-Stay Demand.
FINANCIAL HIGHLIGHTS
- Fee Simple Acquisition: The hotel provides full ownership and operational control, enabling independent financing and management. This structure typically supports long-term property appreciation, making it a compelling investment opportunity.
INVESTMENT OVERVIEW
As the exclusive representative of the seller, Marcus & Millichap is pleased to present for sale to qualified investors the Cerulean Hotel (“Hotel” or “Property”) located at 100 Main Street in Klamath Falls, Oregon. The upper-midscale Hotel is offered at $6,500,000 or $79,268 per key. Additionally, the seller is offering the adjacent Waffle Hut & Eatery, located at 106 Main Street, as a separate acquisition opportunity with an asking price of $1,000,000, allowing a buyer the flexibility to control both lodging and food-and-beverage operations or pursue separate ownership strategies.
Situated on approximately 3.28 combined acres (2.49 acres for the Hotel and 0.79 acres for the restaurant parcel), the Property features 82 guest rooms across two stories totaling approximately 68,750 square feet. Originally constructed in 1962 and comprehensively renovated in 2022, the Hotel offers a variety of accommodations designed to appeal to both transient and extended-stay guests, including guestrooms equipped with kitchenettes and spacious one-bedroom suites. Property amenities include a seasonal swimming pool, guest laundry facilities, ample parking with 130 spaces, and convenient access to the adjacent Waffle Hut & Eatery, which features a dedicated meeting and dining area for guests and local patrons.
The Hotel benefits from a highly diversified demand base generated by tourism, healthcare, education, government, and extended-stay corporate travel throughout southern Oregon. The Property provides convenient highway access to Crater Lake National Park, one of the Pacific Northwest's premier tourist destinations, attracting visitors throughout the year. The $500 million Klamath Falls Energy Center, a major natural gas-fired power generation facility, serves as an important regional employer and creates recurring lodging demand from plant personnel, maintenance crews, contractors, and energy industry professionals. Additional leisure demand is generated by the nearby Klamath Event Center, Moore Park, local museums, and the vibrant downtown shopping and dining district, all within walking distance of the Hotel. The Property also enjoys consistent extended-stay demand from traveling nurses, visiting healthcare professionals, and out-of-town companies whose employees frequently occupy the Hotel for multi-week and multi-month assignments, benefiting from the in-room kitchens and one-bedroom suite configurations. Educational demand is supported by visiting students and families attending nearby colleges and universities, while corporate and government travelers further diversify the Hotel's occupancy base.
Klamath Falls serves as the commercial, healthcare, and educational hub of south-central Oregon and benefits from its strategic location along U.S. Highway 97, providing connectivity between Oregon and Northern California. The regional economy is supported by healthcare, education, agriculture, forestry, renewable energy, tourism, and government employment. Outdoor recreation remains one of the area's strongest economic drivers, with nearby Crater Lake National Park, Upper Klamath Lake, mountain recreation, fishing, hiking, and wildlife viewing attracting visitors throughout the year. The city's walkable downtown, expanding tourism industry, and growing healthcare sector continue to strengthen lodging demand. With its recent renovation, extended-stay product offering, downtown location, and diverse demand generators, the Cerulean Hotel presents investors with an attractive opportunity in one of southern Oregon's most established hospitality markets.
BROKER OF RECORD
David Tabata
Oregon
P: (503) 200-2000
Lic #: 201224889
