- 65-Room, Exterior Corridor, Economy Hotel Built in 1977
- Less than Five Miles from Effingham County Memorial Airport
- Priced Significantly Below Replacement Cost at $16,846 per Key
- Hotel Underwent Major Renovations Completed in 2018
- Operational Upside for Prospective Hands-On Owner-Operator Investor
- Impressive Property Operations with Lucrative 13.39 Percent Capitalization Rate
Marcus & Millichap’s National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Econo Lodge Effingham. The Choice-branded hotel is priced at $1,095,000 or $16,846 price per room; this represents a 2.45 times multiple on trailing 12-month room revenues. An opportunistic property, constructed in 1977, is located on West Fayette Avenue, near Interstate 70.
Priced at an attractive 13.39 percent capitalization rate, this two-story, 65-room hotel presents a new investor the opportunity to acquire a well-maintained hospitality asset at a price below replacement cost. An advantageous property, with significant upside potential for an owner-operator, has additional value-add opportunities for a new investor. The hotel is positioned in an opportunity zone, which will provide a new investor tax break incentives on specific hotel improvements, contact agent for more information.
This large 122-room hotel is currently operating 65 rooms, per agreement with Choice. With a full completion of Econo Lodge PIP, a new investor can put in service an additional 57 rooms; this increase in room count offers potential to experience an increase in revenues. Recently, the current owner has completed construction on a meeting room and is in the process of building out two on-site owner quarters.
The expenses include provisions for a four percent reserve for capital replacement. The hotel is offered fee simple, unencumbered by management and debt.
The Econo Lodge Effingham is a 65-room, two-story, exterior corridor hotel built in 1977. Well-equipped with numerous common area and guest room amenities, this limited-service economy hotel offers spacious guest rooms that come furnished with a microwave, refrigerator, desk, and flat-screen television with premium channels. Additionally, some common area amenities the hotel has to offer consist of an outdoor pool and self-service laundry facilities.
Effingham, Illinois is a city located in Effingham County in the central region of the state, 80 miles south of Champaign and 100 east of St. Louis. The Econo Lodge Effingham is superbly positioned on West Fayette Avenue, near Interstate 70. 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 city which include healthcare and social assistance, manufacturing, and retail trade. Patterson Technology Center and Heartland Dental, two of the city’s largest employers, are located approximately three miles from the hotel and are prime revenue drivers for the surrounding area. Other major employers that are responsible for a significant portion of the workforce include FedEx Distribution (1.2 miles), Sherwin-Williams Company Distribution Center (1.5 miles), Stevens Industries Incorporated (1.7 miles), and Quad Graphics (2.2 miles). Revenue generators in the area, like Village Square Mall (2.1 miles) and My Garage Corvette Museum and Retail Store (4.3 miles) help bring additional revenue to the hotel through an increase in transient business. Extra demand drivers for the city include Effingham City Park (1.9 miles) and Effingham County Memorial Airport (4.5 miles).