INVETMENT HIGHLIGHTS
- 76-Room Select-Service Offering: Established Three-Story Hospitality Asset with Extensive Guest Amenities and Approximately 159 Parking Spaces.
- Orthopedic Capital of the World: Positioned Within One of the Nation's Leading Medical Device Manufacturing Clusters, Anchored by Zimmer Biomet and Smith+Nephew.
- Significant Recent Capital Investment: Approximately $118,000 Invested in Building Systems, PTACs, Elevator Components, Kitchenettes, Televisions, and Fitness Equipment.
- Strong Healthcare Demand: Supported by Lutheran Kosciusko Hospital, Fort Wayne Orthopedics, and Warsaw's Extensive Medical Industry.
- Strategic U.S. Highway 30 Location: Direct Access to a Major Northern Indiana Transportation Corridor Supporting Corporate, Logistics, Freight, and Transient Travel.
- Higher Education Demand: Benefits From Grace College and Manchester University, Supporting Academic, Athletic, Family, and Event-Related Visitation.
- Sports and Event Demand: Near City-County Athletic Complex, Kosciusko County Fairgrounds, and Wagon Wheel Center for the Arts.
- Extensive Lake and Recreation Demand: Access to Winona Lake, Pike Lake, Center Lake, Hidden Lake, Chain O' Lakes State Park, and Regional Trails.
- Corporate Aviation Accessibility: Supported by Warsaw Municipal Airport and the Market's Concentration of Corporate Headquarters and Manufacturing Operations.
FINANCIAL HIGHLIGHTS
- Climbing Submarket RevPAR: As of September, the 12-month average RevPAR in the Indiana North Area Submarket increased by over 5.9 percent, indicating robust growth and a lower-risk environment, boosting investor confidence in the asset and thriving market.
- Heightened Room Revenue: Between year-end 2025 and the twelve months ending in September 2026, the hotel experienced a notable 27.7 percent increase in room revenue. This trend presents several advantages for potential buyers, including additional capital for renovations and enhanced cash flow.
- Room Revenue Upside Potential: With a RevPAR Index of 73 percent, the hotel presents untapped potential. Leveraging strategic revenue management and targeted marketing initiatives could increase room revenue to $1.4–$1.5 million, unlocking significant upside and delivering stronger returns for investors.
- Heightened Net Operating Income: Between year-end 2025 and the twelve months ending in September 2026, the hotel saw a notable increase of over 272 percent in net operating income (NOI). This trend presents several advantages for potential buyers, including additional capital for renovations and enhanced cash flow.
- 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.
INVESTEMENT OVERVIEW
As the exclusive representative of the seller, Marcus & Millichap is pleased to present for sale to qualified investors the Best Western Plus Warsaw ("Hotel" or "Property") located at 3825 Lake City Highway in Warsaw, Indiana. The 76-room select-service Hotel is offered on a “Request for Offers” basis. Please reach out to the listing agent for more information.
Situated on approximately 2.20 acres, the Property features 76 guest rooms across three stories within an approximately 39,266-square-foot building. Originally constructed in 1997, the Hotel offers an extensive amenity package including an indoor heated pool, fitness center, business center, interior corridors, and 159 parking spaces that can accommodate trucks. Recent capital expenditures include a new fire pump, PTAC replacements, lobby HVAC improvements, five rooms with kitchenettes, a new backflow preventer, elevator hydraulic valve and power unit replacement, new televisions, and updated fitness equipment, representing approximately $118,000 in improvements.
Known as the “Orthopedic Capital of the World,” the Warsaw area’s orthopedic industry employs approximately 13,000 people and represents roughly one-third of global orthopedic manufacturing, including nearly two-thirds of hip and knee manufacturing. The Hotel benefits from a diverse lodging demand base anchored by major medical device companies including Zimmer Biomet, DePuy Synthes, and Smith+Nephew. Healthcare-related demand is further supported by Lutheran Kosciusko Hospital and Fort Wayne Orthopedics, while Grace College and Manchester University contribute academic, athletic, commencement, and family visitation. Sports and event-driven demand is generated by the City-County Athletic Complex, Kosciusko County Fairgrounds, and Wagon Wheel Center for the Arts, while the Hotel's location directly along U.S. Highway 30 supports transient, freight, logistics, and commercial travel. Leisure demand is strengthened by Winona Lake, Pike Lake, Center Lake, Hidden Lake, Chain O' Lakes State Park, Eel River Golf Course, Lake City Greenway-Winona Lake Trail, Central Park, and Warsaw Biblical Gardens, providing a balanced mix of corporate, healthcare, education, sports, and recreational lodging demand. Additional attractions include the Old Kosciusko County Jail Museum, Anthology Whiskey Room, and the area’s extensive parks, beaches, walking trails, and cycling routes.
Warsaw serves as a nationally recognized hub for the orthopedic and medical device industries and an important commercial center for North-Central Indiana. The area's concentration of orthopedic manufacturers, healthcare providers, and related suppliers collectively generate approximately $17.5 billion in annual revenue and creates a specialized employment base that supports recurring corporate, engineering, training, vendor, and healthcare-related travel. Warsaw's position along U.S. Highway 30 provides regional connectivity for freight carriers, logistics personnel, and travelers throughout Northern Indiana, while Warsaw Municipal Airport further supports corporate and general aviation activity. The lake country’s combination of higher education institutions, athletic facilities, cultural attractions, and outdoor recreation amenities complement the city’s commercial base, creating a diversified market with both weekday business activity and seasonal leisure visitation.
