3824 National Parks Hwy, Carlsbad, NM 88220

Commercial property for lease

• Description
• - 76-Room, Exterior Corridor, Economy Hotel Built in 1970- Less than One Mile from the Carlsbad Cavern Headquarters- 134 Percent RevPAR Growth Since 2016- Well Positioned with Excellent Visibility from Highway 180- Hotel to Achieve Above 75 Percent in Total Return with Current Capital Structure- Well-Maintained Hospitality Asset with Strong NOI Flow Through Percentage of 66%Marcus & Millichaps National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Motel 6 Carlsbad. The limited-service hotel is priced at $7,100,000 or $93,421 price per room; this represents a 2.81 times multiple on July 2019 trailing 12-month room revenues. A well-positioned property, constructed in 1970, is located along the Highway 180 corridor, south of the Carlsbad Caverns Headquarters.Priced at an attractive 23.53 percent capitalization rate, this two-story, 76-room hotel presents a new owner the opportunity to acquire a cash-flowing hospitality asset in southeast New Mexico. An investor, looking to act as an owner-operator, can maximize profits through a reduction in management costs for the property. The hotel is well-equipped with an outdoor pool and business center.Operationally, the hotel achieved $2,527,571 in room revenue, resulting in a net operating income of approximately 66.1 percent of total revenue; this translates to about $1,670,708 before debt service. The property has been consistently outperformed by the competitive set in ADR, reaching a RevPAR penetration index of 86 percent. Since 2016, the hotel has experienced consistent RevPAR growth totaling upwards of 134 percent. Additionally, the hotels location near the Carlsbad Caverns sparks increased demand attracting vacation and leisure travelers to the property. To offset the large demand of the hotel, given its relation to Carlsbad Caverns, a new owner can focus on increasing the average daily rate to drive up RevPAR potentially making this property the premier hotel in the competitive set.The expenses include provisions for a three percent management fee and four percent reserve for capital replacement. The hotel is offered fee simple, unencumbered by a management contract and debt. Building price details: $7,100,000.
• Contact info
• Matthew Reeves

  Marcus & Millichap
• Note

• Details Info about this row that located on 3824 National Parks Hwy, Carlsbad, NM 88220 was got from trusty sources, but HousesForSaleList.com can't guarantee that details about listing price, status, facts, images and owner are correct, because this listing can be changed or removed from market without notice. If You need to receive additional details about this property try to ask directly listing agent or owned.

  If you see any error or mismatches on this page – click here.