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Palace Inn & Suites 550 SE Highway 101 51 Room Hotel Lincoln City, OR 97367 $5,499,000 ($107,824/Room) 2.93% Cap Rate
Investment Highlights
- Great Size Parking Lot
- Excellent Condition
- Positive Cash Flow
- Prime Coastal Location
- Amazing Potential for Improvement
- Full Absentee Ownership
Executive Summary
?? Why This Hotel Is a Winning Investment
This Lincoln City hotel presents a rare combination of stability, upside, and strategic coastal location—making it a standout acquisition for seasoned investors and hospitality operators alike.
Despite being fully absentee-owned with zero marketing, the hotel continues to generate consistent profitability year after year. Its 51 extra-large guest rooms with kitchenettes, patios, and whirlpool tubs provide a unique competitive edge in the local market, catering to both short-term vacationers and long-term guests.
Positioned on 3.35 acres along Oregon’s iconic Highway 101, the property includes a connected lot and infrastructure to add 21 more rooms—a value-add opportunity that’s rare for coastal markets. With franchise interest already in play, a brand conversion could immediately elevate ADR, RevPAR, and occupancy.
Recent renovations (2021), modern amenities, and a prime tourism destination make this asset not only stable, but scalable. Whether you operate it independently or align with a national brand, this hotel is primed for enhanced cash flow, appreciation, and long-term success.
This is not just a hotel—it’s a platform for growth in one of Oregon’s most reliable coastal economies.
This Lincoln City hotel presents a rare combination of stability, upside, and strategic coastal location—making it a standout acquisition for seasoned investors and hospitality operators alike.
Despite being fully absentee-owned with zero marketing, the hotel continues to generate consistent profitability year after year. Its 51 extra-large guest rooms with kitchenettes, patios, and whirlpool tubs provide a unique competitive edge in the local market, catering to both short-term vacationers and long-term guests.
Positioned on 3.35 acres along Oregon’s iconic Highway 101, the property includes a connected lot and infrastructure to add 21 more rooms—a value-add opportunity that’s rare for coastal markets. With franchise interest already in play, a brand conversion could immediately elevate ADR, RevPAR, and occupancy.
Recent renovations (2021), modern amenities, and a prime tourism destination make this asset not only stable, but scalable. Whether you operate it independently or align with a national brand, this hotel is primed for enhanced cash flow, appreciation, and long-term success.
This is not just a hotel—it’s a platform for growth in one of Oregon’s most reliable coastal economies.
Financial Summary (Actual - 2024) Click Here to Access |
Annual | Annual Per SF |
|---|---|---|
| Gross Rental Income |
$99,999
|
$9.99
|
| Other Income |
-
|
-
|
| Vacancy Loss |
-
|
-
|
| Effective Gross Income |
$99,999
|
$9.99
|
| Taxes |
-
|
-
|
| Operating Expenses |
-
|
-
|
| Total Expenses |
$99,999
|
$9.99
|
| Net Operating Income |
$99,999
|
$9.99
|
Financial Summary (Actual - 2024) Click Here to Access
| Gross Rental Income | |
|---|---|
| Annual | $99,999 |
| Annual Per SF | $9.99 |
| Other Income | |
|---|---|
| Annual | - |
| Annual Per SF | - |
| Vacancy Loss | |
|---|---|
| Annual | - |
| Annual Per SF | - |
| Effective Gross Income | |
|---|---|
| Annual | $99,999 |
| Annual Per SF | $9.99 |
| Taxes | |
|---|---|
| Annual | - |
| Annual Per SF | - |
| Operating Expenses | |
|---|---|
| Annual | - |
| Annual Per SF | - |
| Total Expenses | |
|---|---|
| Annual | $99,999 |
| Annual Per SF | $9.99 |
| Net Operating Income | |
|---|---|
| Annual | $99,999 |
| Annual Per SF | $9.99 |
Property Facts
| Price | $5,499,000 | Lot Size | 3.35 AC |
| Price Per Room | $107,824 | Building Size | 22,863 SF |
| Sale Type | Investment | No. Rooms | 51 |
| Cap Rate | 2.93% | No. Stories | 4 |
| Property Type | Hospitality | Year Built | 2002 |
| Property Subtype | Hotel | Parking Ratio | 2.23/1,000 SF |
| Building Class | C | Corridor | Interior |
| Zoning | G-C,R-M - Hospitality | ||
| Price | $5,499,000 |
| Price Per Room | $107,824 |
| Sale Type | Investment |
| Cap Rate | 2.93% |
| Property Type | Hospitality |
| Property Subtype | Hotel |
| Building Class | C |
| Lot Size | 3.35 AC |
| Building Size | 22,863 SF |
| No. Rooms | 51 |
| No. Stories | 4 |
| Year Built | 2002 |
| Parking Ratio | 2.23/1,000 SF |
| Corridor | Interior |
| Zoning | G-C,R-M - Hospitality |
Amenities
- Fitness Center
- Meeting Event Space
Room Mix Information
| Description | No. Rooms | Daily Rate | SF |
|---|---|---|---|
| Suite | 2 | $145.00 | - |
| Guest Room | 49 | $85.00 | - |
1 1
Property Taxes
| Parcel Number | R157983 | Improvements Assessment | $0 (2025) |
| Land Assessment | $0 (2025) | Total Assessment | $3,353,350 (2025) |
Property Taxes
Parcel Number
R157983
Land Assessment
$0 (2025)
Improvements Assessment
$0 (2025)
Total Assessment
$3,353,350 (2025)
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Palace Inn & Suites | 550 SE Highway 101
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