- Two-Story, 120-Room, Exterior-Corridor, OYO Hotels-Branded Hotel
- Interstate 12 Consistently Posts Growing Traffic Counts - Averages 119,910 Vehicles Per Day
- Priced Below Replacement Costs at $40,417 Per Key
- Excellent Highway Accessibility and Visibility from Interstate 12
- Surrounded by Nationally Acclaimed Retailers, Restaurants, and Entertainment Amenities
- Over $1.56 Million of Room Revenue Through Year-End 2021
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 OYO Hotel Baton Rouge – Sherwood Forest / Interstate 12 (‘Hotel’ or ‘Property’). The OYO Hotels-branded Hotel is offered at $4,850,000 or $40,417 per key.
The OYO Hotel Baton Rouge – Sherwood Forest / Interstate 12 is located at 10920 Mead Rd in Baton Rouge, Louisiana just off Interstate 12. The 120-room, exterior-corridor, two-story building was built in 1974 and stretches 4.63 acres. With approximately 72,600 square feet between two floors, the Property maintains a plethora of common area amenities including an outdoor swimming pool, barbeque grills, vending machines, a guest laundry facility, meeting rooms, and banquet rooms.
Baton Rouge, the capital and second-largest city of Louisiana, is in the southwest region of the state about 81 miles northwest of New Orleans. The city’s diverse economy and popular attractions are just a few reasons that people choose to move to, or visit, Baton Rouge. As a result of it being one of the more populated cities in Louisiana, the city’s strong economy is driven by many different industries. From the motion picture industry to the industrial sector of the economy, Baton Rouge has the capacity to meet the needs of all kinds of production demands. With Louisiana sitting as the seventh biggest producer in overall oil and gas production, one of Baton Rouge’s many major economic contributors includes the petrochemical industry. Within this sector of the economy, ExxonMobil and Dow Chemical Company operate as two of the top employers in the city. Other major industries include medical, research, and growing technology, which play smaller, yet important roles in the local economy. The economy is also greatly supported by top employers in the region such as Louisiana State University, Lamar Advertising Company, BBQ Guys, Marucci Sports, and Piccadilly Restaurants. While the city persists with its strong economic output, major attractions such as the State Capitol, Capitol Park Museum, the Louisiana Art & Science Museum, and a variety of city tours all drive tourism that supports the local economy. Lastly, Interstate 12 is a busy highway that consistently posts growing traffic counts each year, with a 13 percent increase in 2021 which translates to an average of 119,910 vehicles per day. In 2020, at the height of the pandemic, traffic numbers only dropped 7 percent.
In 2021, the Hotel recorded room revenues of over $1.56 million, coupled with an ideal net operating income flow-through of 39 percent of total revenue, which equates to over $609 thousand. The limited-service Hotel is an ideal investment for an owner-operator who can continue maximizing returns through healthy cash flows and continual RevPAR growth.
