317 N G St
Madera, CA 93637
La Quinta Inn & Suites by Wyndham Madera · Hospitality Property For Sale · 56,075 SF

The Del Sol a new upper midscale select service hotel located in Madera, California and is the newest member of La Quinta Inn & Suites Franchise Brand. The property consists of 97 rooms, five-story, interior corridor, full amenity upper midscale select service hotel. The hotel sits on half a city block with 56,075 square feet of usable building space and visibility from Highway 99. There are over 60,000 residents in Madera with the city’s population almost doubling in size over the past 10 years. The property is an adaptive use conversion of an existing property that will be delivered as a Turnkey Operation to the new owner at close of escrow. The property opened December of 2018. La Quinta Inn & Suites is an internationally recognized brand with over 900 locations in the United States, Canada and Latin America. The Del Sol is new hotel brand from La Quinta Inn and Suites with a competitive set to include but not limited to a Holiday Inn Express, Hampton Inn and Springhill Suites. The new Del Sol will draw a significant percentage of customers from its central location in downtown Madera. The brand’s guest loyalty has a 50% return rate and 50% of the revenues generated come from the reservation system at each property. The guest profile is 50% business and 50% leisure. The support from a proven leader such as La Quinta Inn & Suites combined with a new Del Sol product in a very strong hotel market are all extremely positive indicators of value in this offering. Investment Summary Price $12,800,000 Cap Rate (Projected Year 1) 10.25% RRM (Year 1) 4.92 Number of Rooms 97 Price Per Room $132,000 Occupancy (Year 1) 68% ADR (Year 1) $107.00 RevPAR (Year 1) $72.76 Year Built 1973 & 2018 Adapted Conversion to Del Sol Lot Size 56,075 Sq. Ft. Type of Ownership Fee Simple Hotel Summary: With a Year One Projected Cap Rate of 10.25%, and a sales price equating to $132,000 per room, the Del Sol presents the potential investor with incredible opportunity to acquire a new upper midscale select service hotel priced below replacement costs in a reliable and strong lodging market. The hotel will be delivered as a new turnkey operation for an operator to come in with a seamless transition at close of escrow. The hotel year one projections have significant room for improvement of Occupancy, ADR, and RevPAR and will continue to rise till stabilization under new ownership. In 2017 - 2018 the property went under an adaptive renovation of an existing building. The whole property from top to bottom to include but not limited to all major systems, roof, building exterior, common areas, parking, a new and dynamic FF&E guest room and common area package. The Del Sol opened in December of 2018. Market conditions in Madera for the competitive set according to Smith Travel Research in 2018 boasts an ADR of $114.00, an Occupancy of 78.5% and a Rev Par of $89.50. Year one projections for the Del Sol is an ADR of $107.00, Occupancy of 68% and a Rev Par of $72.76. Based on year one projections at $12,800,000 the property is priced at a 10.25% cap rate. Upon market stabilization of an ADR of $114.00 and an Occupancy of 78.5% the property will boast a 12.75% cap rate. At close of escrow, Buyer will own the property as a Fee Simple interest and will assume all operations, franchise agreement and management responsibilities at the Del Sol. This is an exciting opportunity to purchase and operate a new upper midscale select service hotel property in the Madera market, an exciting and rapidly-growing area. The City of Madera, with an increasing population and local economy, is an ideal location for this property type and offers the potential sustained ADR, Occupancy and RevPAR growth. The Del Sol is in excellent condition, priced competitively and below replacement costs and is priced to sell at $12,800,000.