Property Description
Passport Advisory Group is pleased to offer, on an exclusive basis, the sale of the Rodeway Inn ("Hotel" or "Property") located in Eureka, California. The 30-room hotel opened in 1989 and is in good physical condition. The hotel is positioned on 0.45± 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.
The City of Eureka is located in Humboldt County, California and is a port city located on the Pacific coast adjacent to Humbolt Bay and includes marinas and docking facilities. The San Francisco Bay Area is approximately 270 miles to the south via US-101. 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. There are many demand generators in Eureka making this a very stable and strong lodging market.
Listing Price: $2,300,000 or $76,667 a roomKey Investment Highlights
- Strong Revenues and NOI - The Hotel has historically produced strong revenues, resulting in consistent NOI;
- Strong, Stable Lodging Market - The Eureka lodging market has a strong and stable history. Eureka is home to multiple government agencies with lodging demand. Additional demand generators include redwood tourism, farm and dairy businesses, logging and millwork, commercial and sport fishing, College of the Redwoods, Humboldt State University, among others. The Eureka 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%;
- Well-Maintained Asset - The Hotel has been well cared for and maintained by on-site owner/operator;
- Ideal for Owner/Operator - With 30 units the hotel is ideally suited for an owner/operator which will allow for ease of management and significant reductions in departmental expenses. There is a spacious two-bedroom manager's unit with pantry and separate kitchen located adjacent to the renovated large office and breakfast room;
- Excellent Visibility - The hotel is well located with great visibility from U.S. Highway 101 (US 101). The property sits on southbound US 101 surface street and is one of the first hotels visible coming into Eureka from the north. The Hotel is within walking distance to the entire historic downtown with its attractions and the County Court House and accompanying government businesses;
- Unencumbered by Management - The Property is being offered unencumbered of management.
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