La Quinta Inn & Suites - Logan, Utah
Apex Commercial Real Estate | KW South Valley Keller Williams is pleased to present the sale of the La Quinta Inn & Suites in Logan, Utah. This property is a 3-story, 85-room, limited-service lodging facility built in 1996. This property features all basic services for a property of this type, and offers amenities including a swimming pool and spa, fitness center, breakfast area, lounge, sundries shop, business center, meeting space, and vending and ice machines. The rooms are accessible via interior corridors.
This property is located in the southern portion of Logan at the junction of Main Street and Highway 89. Located in a primarily commercial area in close proximity to a large commercial development which is anchored by a Wal-mart Supercenter.
Strong Revenue and Upside Potential
Even in the midst of the Covid-19 difficulties, the La Quinta Inn & Suites, Logan, UT has performed well with gross revenue approaching similar numbers that we achieved in 2019. Once travel restrictions are eased, the number of rooms sold may be expected to increase. Room rates may also be expected to increase due to higher demand, further increasing revenue.
In prior years this property operated as a Crystal Inn and was converted to a La Quinta Inn & Suites during a $1.4 million renovation in 2015. This property performed strong through the unforeseen pandemic, maintaining a occupancy rate above 65% in 2020! ADR's also held strong in this market while still achieving an ADR equal to 73% from 2019 numbers.
Unencumbered by Management
The La Quinta Inn & Suites, Logan, UT is ideally offered unencumbered by management, providing a buyer with full optionality, including new management.
High-Visibility In-Town Location
Situated on the Highway 89/Main Street corridor, the La Quinta in Logan is one of the first hotels visitors to Logan see when coming from the Salt Lake area. It is also at the crossroads to many of the local natural attractions.
Local Market
Growth in lodging demand continues to be a tale of two traveler groups leisure and business. The leisure transient segment, which provided a meaningful tailwind for demand, continues to drive room-night demand even though these travelers tend to be relatively price sensitive and are more likely to shop around for a compelling price. Inbound international travel, an important source of leisure demand.
Conversely, the corporate transient segment (and its counterpart, group travel), largely considered the bread and-butter business for many hotels, continues to exhibit anemic growth.
Taking into account the effects of travel Covid-19 has had, this area has continued to perform exceptionally well and are expected to increase, given the availability of vaccine and hopes that Covid-19 begins to subside.
Future Market
"Because much of this decline is not caused by underlying fundamental economic problems, most market segments should start to see meaningful relief in the first and second quarter of 2021."
"Corporate and group travel remains elusive and will lag behind leisure. Hotels reliant on large group and conventions will be slow to pick up as meeting attendees get reacclimated to being close to large numbers of people. Destinations with appealing natural amenities such as beaches and mountains have already seen a high influx from pent-up demand this summer and will likely hold steady through the fall. Drive-to locations are also experiencing increased occupancy levels."
"Even with a slight improvement in ADR and the eventual rise in occupancy through 2021, pricing confidence will waver as global uncertainty around the pandemic persists. We can be certain that recovery is inevitable."
Source: https://www.hospitalitynet.org/opinion/4100921.html
