- Four-Story, 120-Room, Extended-Stay Hotel with Marriott Brand Affiliation
- Priced at an Attractive 2.85 Room Revenue Multiplier and 11.9 Percent Cap Rate at $66,667 per Key
- Near City’s Major Employers, Leisure Demand Generators, and Garden City Airport
- Ideal In-Place Operations with Room Revenues over $2.8 Million and Net Operating Income of Over $951.8 Thousand or 33.4 Percent of Gross Revenues
- Property Improvement Plan Expected to be Completed by New Owner after Trade
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 TownePlace Suites Garden City (‘Hotel’ or ‘Property’). The Marriott International-branded Hotel is offered at $8,000,000 or $66,667 per key.
The TownePlace Suites Garden City is a 120-room, extended-stay Hotel established at 3510 East Kansas Avenue, near the intersection of Highway 83 and Highway 156. The Property is approximately 62,800 square feet across four floors and maintains amenities including an outdoor pool, guest laundry facilities, fitness center, and 260 Sq. Ft. of meeting space.
Garden City, Kansas is the county seat of Finney County in the western region of the state, 50 miles west of Dodge City. The TownePlace Suites is positioned along Highway 156, Garden City’s major thoroughfare, near a multitude of nationally acclaimed retailers and restaurants. With the city’s major employers and popular revenue generators near the Property, this sought-after Hotel benefits from many key industries of the city which include agriculture, food processing, natural gas production, and retail. Tyson Foods and American Cheyenne Drilling, two of the city’s largest employers located approximately three and six 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 Bonanza Bioenergy LLC, Brookover Feed Yards Inc., and Sunflower Electric Power Corporation. Other demand generators in the area, like Lee Richardson Zoo, Parrot Cove Indoor Water Park, Garden City Community College, St. Catherine Hospital, Finnup Park, and Finney Game Refuge help bring additional revenue to the Hotel through an increase in transient business.
Operationally, the upper-midscale Hotel achieved over $2.8 million in room revenues through the trailing twelve-month period ending in April 2022. During the same period, departmental expenses were in line with industry standards, leading to a 33.4 percent NOI flow-through, which translates to over $951.8 thousand, after a four percent capital replacement reserve and a three percent management fee.
