Property Description
Passport Advisory Group is pleased to offer, on an exclusive basis, the sale of the Holiday Inn Express Grover Beach ("Hotel" or "Property") located in Grover Beach, California. The 78-room hotel opened in 1988, expanded in 1996 and recently completed the IHG re-launch PIP. The hotel is positioned on 3.08± acres of fee-simple land that sits adjacent to Hwy 101, the main north-south throughway through the central coast. This Hotel is being offered unencumbered by management and is in good physical condition.
The Holiday Inn Express has
excellent visibility and is only minutes from downtown Pismo Beach, the
ocean and all the area has to offer. The Hotel is located across from
several large shopping centers with all guests' needs being met; outlet
mall, restaurants, coffee shops, gas stations and grocery stores. The
hotel is a quick drive to San Luis Obispo and Cal Poly San Luis Obispo.
The central coast wine region, with over 50 wineries, is minutes from
the Holiday Inn Express.
Listing Price: $8,450,000 or $108,333 a room
Key Investment Highlights
- Strong Revenues and Cash Flows
- The Hotel has historically produced strong and consistent room revenues, with the Hotel generating roughly $1.8M in annual room revenues over the past four years and consistent cash flows;
- Assumable Financing - Assumable financing is available for qualified investors with approximately $6.7M in debt in place;
- Potential Upside - Through the Year End (YE) 2011, the Hotel penetration levels decreased 8.8% while its competitive set increased 10.6% over the same period, indicating significant revenue enhancement opportunities for a new owner;
- Highly Motivated Seller - Being offered as an all-cash sale by the owner. Potential buyers are
presented with a tremendous opportunity to take control of this cash
flowing asset with the seller highly motivated to sell;
- Renovated and Well-Maintained Asset - The Hotel recently completed over a $1 million dollar Holiday Inn Express relaunch and renovation PIP to all guestrooms, pool, lobby and added a second elevator;
- Excellent Visibility - The Hotel is well located with excellent visibility and access from U.S. Highway 101, which is California’s primary north-south coastal thoroughfare linking Los Angels and San Francisco;
- Unencumbered by Management - The Property is being offered unencumbered of management.
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