950B W I-65 Service Rd S
Mobile, AL 36609
Residence Inn Mobile · Hospitality Property For Sale · 68,544 SF

The Residence Inn by Marriott Mobile is a 66-guest room, 3 story hotel located at 950 W I-65 Service Road S in the port city of Mobile, Alabama. This Hotel offers investors a leasehold interest that runs through 2062 with value add via revenue management upside and operational upside. Built in 1996 and recently renovated, The Residence Inn by Marriott Mobile hotel offers one and two bedroom suites and studio suites with fully equipped kitchens, large work stations, free high speed Internet and WiFi. The Hotel offers complimentary hot breakfast buffet and evening socials Monday through Wednesday. The Residence Inn Mobile boasts an indoor pool, fitness center and outdoor Sport Court. Current ownership has recently renovated the Residence Inn, spending approximately $3,300,000 on capital improvements and work required by a PIP (since 2018). Based on this, we believe any brand-required renovation/PIP will be limited in scope and expense.The Residence Inn offers significant upside potential given the completion of the recent renovation. The hotel also boasts impressive index penetrations near or above 110% across all key metrics (RevPAR, Occupancy, and ADR); however, ranking three out of seven in RevPAR, the hotel is expected to see substantial revenue growth with a new operator/manager in place. Currently operating at 7.4% NOI margins, the hotel offers prospective buyers significant operational upside with a newly renovated product and new management strategy in place. With the renovation now complete, a Purchaser stands to control the "pop" from the renovation, capitalizing on the Seller’s investment in completing the property improvement plan. The Hotel is conveniently located in proximity to both the Port of Mobile and the University of South Alabama. The Hotel is situated along Interstate 65, surrounded by dense retail and residential developments. Mobile is best known for being a shipping and distribution hub but it is also home to the original Mardi Gras celebration which draws approximately one million people annually over the two-week period. Additional demand generators in the area include Mobile Regional Airport, the Airbus Assembly Plant, the Mobile Aeroplex, Ladd-Peebles Stadium and the Port of Mobile is known world-wide for its ship-building capabilities, an important service for many United States government and military departments. The Residence Inn Mobile offers local restaurant delivery services. Because of the property’s location along Interstate 65 and Airport Blvd, there are many restaurants within close proximity including Half Shell Oyster House, O’Charley’s Restaurant & Bar, Raising Cane’s Chicken, Outback Steakhouse Ruth’s Chris Steakhouse and a number of locally-owned and operated establishments in the many retail strip centers located nearby. The Property benefits from dense demographics and in 2019 had ±169,175 individuals residing within a five-mile radius of the property and an average household income of ±$59,862. In 2019, the total estimated specified consumer spending within a 5-mile radius of the Property accounts for ±$1,439,395 ,000 and there are ±9,811 businesses and ±104,169 employees. The Residence Inn by Marriott Mobile offers investors the opportunity to purchase a renovated cash flowing hospitality asset with strong upside potential positioned in a high traffic area along I-65 and near the University of South Alabama and Springhill College.