- Brand New Construction - October 2018
- Excellent Stable Market
- Nearby Demand Generators - Downtown Baton Rouge, LSU & New Orleans
- Great Access to Interstate 10
- Opportunity to Capitalize on the Bonus Depreciation of 2018 Tax Plan
Marcus & Millichap is proud to exclusively offer the brand new Best Western Plus Executive Residency Ascension Hotel, a four-story limited-service hotel located in Gonzales, Louisiana. The 82-unit, upper-midscale, interior corridor property is a new concept developed to accommodate extended-stay consumers, which is a fast-growing segment in the lodging industry.
According to Best Western CEO, David Kong, [The concept] is designed for quality, cost-effective construction, efficient operations, and will drive bottom-line results." Since it is two brands under one roof, the property attracts business, leisure and extended-stay guests thereby lowering development and operating costs while simultaneously realizing improved market share.
Listed at $7.7M, the property is offered below appraisal value if $8.45M and the typical replacement costs of $9m or $110,000/room. The property has been opened approximately 15 months and still has room to stabilize.
The Tax Cuts and Jobs Act (TCJA) added an enormous new deduction and beneficially changed depreciation that will affect this business.
Section 199A Deduction
There is a new deduction for qualified business income of pass-through entities, also known as Section 199A provision, which allows a deduction of up to 20 percent of the qualified business income for owners of some businesses. Using Section 199A, business owners may get to simply not pay income taxes on 20 percent of the income they earn.
The TCJA allows 100 percent expensing for business property acquired and placed in service after September 27, 2017 and before January 1, 2023. This 100 percent deduction generally applies to depreciable business assets. Machinery, equipment, furniture, fixtures, computers, appliances, fences, parking lots, and landscaping all generally qualify.
The Best Western Plus Executive Residency Ascension Hotel is an 82-room, four-story hotel newly built in 2018. This dual branded Best Western property offers extended-stay rooms. The guest rooms come furnished with a microwave, refrigerator, flat-screen television, and kitchenettes in the extended-stay rooms. The common amenities offered are an outdoor pool, fitness facility, and guest laundry.
Gonzales, Lousiana is in the heart of the Ascension Parish which is one of the Gulf South's most vibrant economies. The Best Western Plus Executive Residency Ascension Hotel is strategically located along Interstate 10 and the Mississippi River, also referred to as "energy alley" due to the short, 60-mile commute to New Orleans, while maintaining the Baton Rouge MSA. In addition, Ascension Parish is positioned in close proximity to three deepwater ports, three Class A freight railways, four interstate highways, and two commercial airports within a 45-mile radius. The Lamar Dixon Expo Center is a $58 million multipurpose facility located on 247 acres around the corner from the hotel. The property includes three arenas, cattle pens, stall barns, a gymnasium, and a forestry building among other facilities. This center should continue to provide constant leisure hotel demand to the subject property. Additionally, the Tanger Outlets Gonzales hosts a variety of 57 stores and six restaurants and is located directly across the street from the hotel with a traffic count of approximately 20,000 vehicles per day along Highway 30.