Ten-X Auction - Dates: Apr 3 - Apr 5, 2023 - Starting Bid: $750,000
- Two-Story, 166-Room, Exterior-Corridor, OYO Hotels-Branded Hotel
- Expected to Trade Below Replacement Cost
- Easily Accessible and Highly Visible from the Well-Trafficked Interstate 35
- Significant Upside Potential Through a Detailed Approach to Revenue and Expense Management
- Offered Fee-Simple, Unencumbered by Management Contract or Debt
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 District Hotel Oklahoma City I-44 (‘Hotel’ or ‘Property’). The OYO Hotels-branded Hotel is offered on a "call for offers" basis. Please reach out to the listing agent for more information.
The District Hotel is a two-story Hotel that sits on 4.14 acres in Oklahoma City, positioned on Interstate 44 near Interstate 235 and Highway 74. Well-equipped with numerous common areas and guest room amenities, this limited-service Hotel maintains two outdoor pools, vending machines, an on-sight ATM, an outdoor fireplace, bar, and lounge. With 117 hotel rooms and 49 apartments, this Hotel is built to maximize both multifamily and hospitality needs.
Oklahoma City, Oklahoma is located in Oklahoma County in the central region of the state, 85 miles northeast of Lawton and 105 miles southwest of Tulsa. With the city's major employers and popular revenue generators in close proximity to the Property, this sought-after Hotel benefits from many key industries of the town which include healthcare & social assistance, retail trade, and construction. INTEGRIS Health Edmond and the University of Central Oklahoma, two of the city's largest employers located approximately 13.9 and 12.7 miles from the Hotel respectively, are prime revenue drivers for the surrounding area. Other major employers responsible for a significant portion of the workforce include OU Medical Center (5.2 miles), Mercy Hospital Oklahoma City (10.2 miles), Boeing Company (15.6 miles), and the Tinker Air Force Base (14.9 miles). Revenue generators in the area, like Oklahoma City Zoo (5.9 miles) and Penn Square Mall (1.2 miles) help bring additional revenue to the Hotel through an increase in transient business. Extra demand drivers for the city include the Frontier City Theme Park (9.6 miles), Oklahoma City National Memorial & Museum (5.3 miles), State Fair Park (3.5 miles), and the Will Rogers World Airport (12 miles).
In 2021, the Hotel recorded room revenues of over $850 thousand, which represents a 16.5 percent decrease compared to 2019 room revenue. Focusing on increasing the Hotel’s operational efficiency, this value-add Property has the possibility to achieve a significant increase in net operating income allowing the owner to seize a larger portion of top-line revenues. Current expenses include provisions for a four percent capital replacement reserve. The Hotel is offered fee-simple, unencumbered by a management contract or debt.
Steve Greer
Broker of Record
License: OK 206118
