Property Description
Passport
Advisory Group is pleased to offer, on an exclusive basis, the sale of
the Holiday Inn Express Fortuna ("Hotel" or "Property") located in
Fortuna, California. The 46-room hotel opened in 1993 and recently completed the IHG re-launch PIP. The hotel is positioned on 1.01±
acres of fee-simple land that sits adjacent to Hwy 101, the main
north-south throughway through the northern California coast.This Hotel is being
offered unencumbered by management and is in good physical condition. The City of Fortuna is located in Humboldt County, California sits on the northeast bank of the Eel River and is approximately seven miles from the Pacific coast. The San Francisco Bay Area is 250 miles to the south and Eureka is 17 miles to the north. The city is ideally located to take advantage of both commuter traffic heading up and down the coast as well as local tourism attracted to the areas vast array of attractions. U.S. Route 101 is the major thoroughfare running north and south along the Pacific coast through California, Oregon and Washington. This highway runs straight through Fortuna and is the lifeblood of the lodging business in the area. The city sits alone as a lodging oasis with virtually no other hotels within a 17 mile radius and high barriers to entry. Business travel passes through Monday through Friday year round and tourist travel booms during the summer. There are many demand generators in Fortuna making this a very stable and strong lodging market.
Listing Price: $4,410,000 or $95,870 a roomKey Investment Highlights
- Strong Revenues and Cash Flow
- The Hotel has historically produced strong revenues, resulting in consistent cash flows;
- Attractive Assumable Financing - The current USDA loan with an
approximately principal balance of $3,000,000 at a 4.25% interest rate,
has 26 years of the 30 amortized years loan left. The USDA program is a
government guaranteed program for certain geographical areas. Use of the
program would still allow the use of the SBA program for other
investments making this program very attractive for a multi-hotel
investor;
- Renovated and Well-Maintained Asset - The Hotel recently completed the Holiday Inn Express relaunch and renovation to all guestrooms including, carpet, granite vanities, sinks, toilets, PTACs, professional exterior paint and professional landscaping. A new investor could leverage the Property’s recent renovation to aggressively drive revenues as the Hotel is in good condition;
- Strong, Stable Lodging Market - The Fortuna lodging market has a strong and stable history. Multiple demand generators include redwood tourism, farm and dairy businesses, logging and mill work, commercial and sport fishing, College of the Redwoods, Humboldt State University, and steady federal and state government business among others. The Fortuna market did not see any significant drop in revenue during the economic recession. A full year into the recession, 2009 year end STR report shows that the Eureka/Crescent City market outperformed all other California markets in maintaining RevPAR with only a dip of 3.1% compared with most other markets showing double digit drops, up to 18.7%;
- Ideal for Owner/Operator - With 46 units the hotel is ideally suited for an owner/operator which will allow for ease of management and significant reductions in departmental expenses. Current ownership is absentee;
- Excellent Visibility - The hotel is well located with great visibility from U.S. Highway 101 (US 101). The property sits adjacent to the River Lodge Conference Center, which can host up to 500 people with with its 13,000 square feet of flexible meeting and banquet space. The hotel is also located next to a The River Steak, a fine dining steakhouse, and the Eel River Brewing Company;
- Unencumbered by Management - The Property is being offered unencumbered of management.
|
