Heritage Inn & Suites 765 Highway 51 S 39 Room Hotel Ripley, TN 38063 $1,300,000 ($33,333/Room)

CALL FOR OFFERS
Deadline to Submit the Offer – March 23rd, 2026
HIGHLY CONFIDENTIAL. ALL appointments must be scheduled with the Broker.
To schedule a Tour, Contact Suresh Patel at 901-674-6105.
This recently renovated 39-key independent hotel (2 keys used as manager’s apartment) sits directly on U.S. Highway 51 in Ripley, Tennessee, with excellent visibility to over 18,000 vehicles daily. The property benefits from a rare heated indoor saltwater pool, full ownership of vending machines (no commissions), and a lean, high-margin operation that has consistently delivered NOI margins above 50%.
Recent capital improvements totaling approximately $200K (2022–2024) include a new roof, tankless water heaters, complete guestroom renovations, new hallway carpets, paint, bathroom tiles, and upgraded exterior walkways—significantly reducing near-term capex.
The hotel is conversion-ready to either America’s Best Value Inn by Sonesta or Super 8 by Wyndham, with Property Improvement Plans (PIPs) available for both brands. Franchise affiliation offers immediate access to national reservation systems, loyalty programs, and strong OTA placement—creating clear, quantifiable upside in ADR and occupancy.
Strategically located 45 minutes from Ford’s BlueOval City (ongoing regional economic activity) and near major demand generators including Komatsu, Faist Light Metals, Fort Pillow State Park, the Alex Haley Museum, and the annual Lauderdale County Tomato Festival, this asset delivers stable cash flow today with substantial value-add potential.
Attractive Pricing & Metrics — $1,300,000 purchase price ($33,333/key) | 3.8x Gross Revenue Multiplier | 14.0% Cap Rate on Year 1 NOI
Proven Cash Flow — 2025 room revenue $322,839 | Consistent historical NOI margins above 50% | Year 1 projected Adjusted NOI $181,446
Strong Investor Returns — 24.0% cash-on-cash (28.5% incl. equity buildup) | 1.61x Debt Coverage Ratio | 20% down payment with SBA 7(a) financing available
Recent Capital Investment — ~$200K spent 2022–2024: new roof, tankless water heaters, full guestroom renovations, new carpets, paint, bathroom updates, and exterior improvements
Rare Amenity Advantage — Heated indoor saltwater pool (major competitive differentiator in the economy segment) + owned soda/ice vending machines (additional revenue, no commissions)
Brand Conversion Opportunity — PIPs completed for America’s Best Value Inn by Sonesta and Super 8 by Wyndham; both offer national distribution, loyalty programs, and anticipated revenue uplift
Prime Highway Location — Direct frontage on U.S. 51 (future I-69 corridor) with 18,000+ daily vehicles; 55 miles north of Memphis and ~45 minutes from Ford BlueOval City
Diversified Demand Drivers — Industrial (Komatsu, Faist Light Metals, TVA), tourism (Fort Pillow State Park, Alex Haley Museum), events (Tomato Festival), and regional spillover from BlueOval City development
Low-Complexity Operation — Simple 39-room layout ideal for owner-operator or absentee ownership with strong existing management in place
Clear Value-Add Path — Brand affiliation + optimized sales & marketing expected to drive higher ADR and occupancy in a stable, growing market