The Three Fifty Hotel 350 S Belardo Rd 10 Room Hotel Palm Springs, CA 92262 $3,900,000 ($390,000/Room) 4.06% Cap Rate

Maxim Hotel Brokerage, Inc. is pleased to present an exclusive listing on The Three Fifty Hotel. Ideally located within the Historic Tennis Club neighborhood, Palm Springs premier neighborhood for boutique hotels, the hotel is within a very short walking distance to Palm Springs Downtown Village and proximate to numerous spectacular restaurants and retail stores. Palm Springs is within two hours drive of Southern California’s 22-million-person population base. Unencumbered by brand or management, a new entrepreneurial owner will own and operate one of the best located boutique hotels in Palm Springs, a world class boutique destination hotel and resort market.
OVERVIEW
The Three Fifty Hotel is a mid-century modern boutique hotel that competes within the high-end boutique segment in the Palm Springs market. Please consider the following highlights:
- Premier Location - The hotel’s location within the Historic Tennis Club is superior to most of Palm Springs’ best performing boutique hotels, including Avalon, La Serena Villas, Del Marcos, The Ingleside Inn, Willows, Holiday House, Rowan, Korakia, Orbit In, Hideaway and several others. The Downtown Village is a short walk.
- Ideally Positioned for Owner Operator - Purchased in 2023 in a portfolio with La Serena Villas and Del Marcos Hotel, the hotel is complex managed, but is ideally operated as a proprietorship.
- Strong RevPAR / Potential - The property generates strong RevPAR of $140 for Trailing-12 months through March; RevPAR was $184 in 2023 prior to purchase. The hotel can be operated efficiently and profitably. Forward-12 month forecast shows RevPAR of $163, Room Revenue of $595,000, and NOI of ±$158,000.
- Strong Boutique Market - Performance trends have been very strong for the boutique Palm Springs hotel market since reopening from the COVID pandemic. While performance has subsided some since the post-COVID bubble in 2022, market performance is still well ahead of 2019, which was a record year. Convention bookings, airport passenger counts and hotel performance trends have been very strong and are showing great promise for the coming years.
- Fee Simple Site - Unlike many other hotels in the Palm Springs market, The Three Fifty offers fee simple ownership.
Irreplaceable Mountain Views - Stunning views from the pool and pool deck set The Three Fifty apart from many other smaller boutique properties.
VALUE ENHANCEMENT OPPORTUNITIES
- Continue to Drive ADR- Annual occupancy was 83% in 2019, which is extraordinary for a seasonal market like Palm Springs. Trailing-12 month occupancy is 71% with $196 ADR. Opportunity exists to drive Occupancy and ADR for this extraordinary property.
- Renovate / Theme - The property is in very good condition, however opportunity exists to renovate and lean further into the authentic mid-century modern theme. This can be accomplished with upgraded and era-specific finishes and FF&E throughout.
- CBD Zoning - The location, on the east side of Belardo Road, is zoned CBD, which is a flexible commercial zoning, allowing higher density than the typical R3 zoning for most other boutique hotels in the neighborhood. Hotels in the immediate neighborhood are being positioned to even higher levels, demonstrating the value of the location. For example, the Orchid Tree, located across Barristo Road, is planned for significant redevelopment to upscale lodging with reported all-in cost of well over $1 million per room.
- Pop-Up Coffee or Café Opportunity - Belardo Road experiences heavy pedestrian and bicycle activity in the mornings and early afternoons, especially from nearby hotel guests. A vacant former garage space with frontage on Belardo could be repurposed into a morning coffee stand or a small café.