HVS Brokerage & Advisory, in cooperation with Eric Vincent Guerrero, as the sole and exclusive advisory firm to ownership, presents the opportunity to acquire the 65-key Days Inn by Wyndham Natchitoches. This hotel asset offers operational upside at an attractive cost, considered ideal for an experienced owner/operator.
Ideal Opportunity for Owner-Operator to Improve Performance and NOI Flow-Through
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The 65-key count makes the hotel an ideal size for either a first-time owner/operator or an experienced regional investor looking to expand their portfolio.
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Over the past three years, the hotel has registered an average gross operating profit (GOP) of 13.33%. Based on similarly aged hotels affiliated with Wyndham, the hotel should conservatively achieve a stabilized GOP margin between 35.0% and 40.0%.
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Given the current “hands-off” ownership, there exist numerous opportunities for improvement that could result in reduced rooms expenses and administrative & general expenses.
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The hotel is one of just two economy-scale products in the direct vicinity; upon completion of the change-of-ownership property improvement plan (PIP), an investor will possess the market-leading economy-scale hotel in the area.
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Based on HVS’s pro-forma projections, stabilized rooms revenue next year is anticipated to exceed $712,000 ($30 RevPAR), with an NOI flow-through of $230,000 (rounded).
Attractive Rooms Revenue Multiplier (RRM) – 3.25x
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The hotel achieved $570,000 (rounded) in rooms revenue last year, registering a $24 RevPAR.
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The hotel has a stable top-line operating performance with an average rooms revenue of $577,000 (rounded) over the last three years.
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Based on the $1,850,000 pricing guidance, the hotel underwrites to a 3.25x RRM based on the 2023 year-end rooms revenue.
Limited Hotel Construction in the Area
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Over the past fourteen years, only three new hotels have opened in Natchitoches, creating a market environment with reduced competition.
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Holiday Inn Express & Suites Natchitoches, an IHG Hotel – January 2007
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Comfort Suites Natchitoches – March 2011
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Fairfield by Marriott Natchitoches – November 2013
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Excellent Location Among Strong Corporate & Leisure Demand Generators
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The property is proximate to Downtown Natchitoches; local attractions and demand generators include Northwestern State University, the Natchitoches Jazz/R&B Festival, Louisiana Summer Fest, the NYP Pub Crawl, and youth sporting events at the newly constructed, multimillion-dollar sports park.
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The growth of the lodging sector in Natchitoches is anticipated to be driven by the local economy’s strength and diversity. The area attracts both working-class and leisure-related demand, which is expected to continue.
Priced Significantly Below Replacement Cost
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This opportunity provides an investor the ability to acquire the property at a price well below replacement cost at $28,462 per key.
For inquiries please visit here to execute the Confidentiality Agreement.