THE OFFERING
HVS Brokerage & Advisory, in cooperation with Eric Vincent Guerrero, as the sole and exclusive advisory firm to ownership, is pleased to present the opportunity to acquire the 63-key Best Western Natchitoches Inn. This well-performing hotel asset would be ideal for an experienced owner/operator. The property has been well maintained, having undergone an extensive $1.5-million renovation approximately six years ago.
PROPERTY HIGHLIGHTS
Strong-Performing Asset with Value-Add Component to Reduce Expenses for “Hands On” Investor
The hotel has a stable top-line operating performance with an average rooms revenue of $1,150,000 (rounded) over the last three years.
The hotel achieved $1,280,000 (rounded) in rooms revenue last year, registering a $55 RevPAR level–its highest performance since 2021.
The hotel’s RevPAR penetration index has maintained a steady average of approximately 69.0%, suggesting substantial potential for an investor to employ a value-add business model to implement aggressive sales tactics and capture more demand to maximize RevPAR penetration.
Per the STR data, the hotel ranked sixth out of six competitive hotels in terms of occupancy, with a 78.0% penetration index; in addition, it recorded the lowest RevPAR among the competitive set for the trailing-twelve-month period (TTM) ending February 2024. Given the midscale brand affiliation, and upon the completion of the change-of-ownership property improvement plan (PIP), there is flexibility for a new operator to increase occupancy and improve RevPAR.
Per the 2023 financial statement, the hotel achieved a gross operating profit (GOP) of only 38.7%, leading to a $348,700 NOI flow-through. Great upside exists for a more “hands-on” owner/operator to restructure the hotel’s operations and boost NOI flow-through. In the HVS five-year pro-forma projection, a new operator could achieve GOP levels north of 45.0% of total revenue.
Based on HVS pro-forma projections, stabilized rooms revenue next year is anticipated to exceed $1,430,000 ($62 RevPAR), with an NOI flow-through of $504,000 (rounded).
Excellent Location near Corporate & Leisure Demand Generators
The property boasts a strategic location just off Interstate 49 and serves a mixed clientele consisting of oil & gas (O&G) workers, construction workers, and transient highway travelers.
The property is proximate to Downtown Natchitoches; local attractions and demand generators include Northwestern State University, the Natchitoches Jazz/R&B Festival, Louisiana Summer Fest, the NYP Pub Crawl, and youth sporting events at the newly constructed, multimillion-dollar sports park.
Growth in the lodging sector in Natchitoches is anticipated to be driven by the local economy’s strength and diversity. The area attracts both working-class and leisure-related demand, which is expected to continue.
Discount to Replacement Cost
This opportunity provides an investor the ability to acquire the property at a price below replacement cost at $77,777 per key.
Limited Hotel Construction in the Area
Over the past 14 years, only three new hotels have opened in Natchitoches, creating a market environment with reduced competition.
Holiday Inn Express & Suites Natchitoches, an IHG Hotel – January 2007
Comfort Suites Natchitoches – March 2011
Fairfield by Marriott Natchitoches – November 2013
PHOTO GALLERY
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CONTACT US
Investment Sales Contacts
Eric Guerrero
Senior Managing Director, Partner, Brokerage & AdvisoryHVS
Houston
+1 (713) 955-0012
eguerrero@hvs.com