- 72-Room, Upper Midscale Hotel Built in 2016
- Lender Short Sale, Offer Deadline November 1, 2019
- Well Positioned with Excellent Visibility from Interstate 35
- Offered @ 3.82 RRM TTM July 2019, Priced Significantly Below Replacement Cost @ $76K
- Significant Upside Potential Through a Detailed Approach to Expense Management
- Located in Oklahoma City MSA
Marcus & Millichaps National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Hampton Inn Oklahoma City Northeast. The Hilton-branded hotel is priced at $5,500,000 or $76,389 Price Per Key. The recently constructed property, built in 2016, is located on Interstate 35 near the Interstate 35 and 44 interchange which supports 84,600 cars per day (CPD). This offering is being sold as a short sale with a call for offers deadline of November 1, 2019.
This four-story, 72-room hotel presents a new owner the opportunity to acquire a newly built property within the Oklahoma City MSA. The hospitality asset is being sold at a price below replacement cost. An investor, looking to act as an owner-operator, can see significant upside potential through proper expense management. The hotel is well-equipped with an indoor pool, fitness center, and sundry shop.
Operationally, this hotel achieved $1,439,541 in room revenue for July 2019 trailing twelve-months. The hotel has outperformed the competitive set in both occupancy and ADR, allowing the hotel to reach RevPAR index of 104 percent. Focusing on increasing the hotels operational efficiency, this value-add property has the possibility to achieve a moderate increase in net operating income allowing the owner to seize a larger portion of top-line revenues.
The expenses include provisions for a three percent management fee and four percent reserves for capital replacement. The hotel is offered fee simple, unencumbered by management and debt.
The Hampton Inn Oklahoma City Northeast is a 72-room, four-story, hotel built in 2016. Well-equipped with numerous common area and guest room amenities, this limited-service upper-midscale hotel offers spacious guest rooms that come furnished with a microwave, refrigerator, work desk, lounge chair, and a flat-screen television with premium channels. Some splendid common area amenities the hotel has to offer consist of an indoor pool, fitness center, business center, a meeting room, laundry facilities, and a sundry shop.
Oklahoma City, Oklahoma is a city located in Oklahoma County in the central region of the state, 85 miles northeast of Lawton and 105 miles southwest of Tulsa. The Hampton Inn Oklahoma City Northeast is superbly positioned on Interstate 35, near the interchange of Interstate 44 and 35. 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 4.7 and 6.8 miles from the hotel respectively, are prime revenue drivers for the surrounding area. Other major employers that are responsible for a significant portion of the work force include OU Medical Center (6.3 miles), Mercy Hospital Oklahoma City (10.9 miles), Boeing Company (15.9 miles), and the Tinker Air Force Base (21.9 miles). Revenue generators in the area, like Oklahoma City Zoo (5.9 miles) and Penn Square Mall (9.8 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 (1.5 miles), Oklahoma City National Memorial & Museum (11.5 miles), State Fair Park (14.5 miles), and the Will Rogers World Airport (21.6 miles).
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