- 72-Room, Upper Midscale Hotel Built in 2016
- Located in Oklahoma City Metropolitan Statistical Area with Strategic Positioning near Major Demand Generators
- Easily Accessible and Highly Visible from the Well-Trafficked Interstate 35
- Significant Upside Potential Through a Detailed Approach to Expense Management
- Offered Fee Simple, Unencumbered by Debt or Management Contract
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 Hampton Inn Oklahoma City Northeast (‘Hotel’ or ‘Property’). The Hilton International-branded Hotel is offered at $6,000,000 or $83,333 per key.
The Hampton Inn Oklahoma City Northeast is a 72-room, four-story, Hotel built in 2016. Well-equipped with numerous common areas 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 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 workforce 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).
Operationally, this Hotel achieved over $1.45 million in room revenue through 2021. The Hotel has outperformed the STR-defined competitive set in both occupancy and ADR, allowing the property to reach the RevPAR index of 103 percent from 2018 to 2020. Focusing on increasing the Hotel’s 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. Current expenses include provisions for a 4 percent capital replacement reserve and a 3 percent management fee. The Hotel is offered fee-simple, unencumbered by a management contract or debt.
Broker of Record:
Mark R. McCoy
License: OK 181981
