Days Inn & Suites Lordsburg, Nm
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New Mexico Hotel For Sale DAYS INN & SUITES LORDSBURG, NEW MEXICO 1426 W Motel St, Lordsburg, NM 88045 Anthony Becerra Jigar "Jay" Desai Broker of Record Dinesh Rama T 602.648.2704 T 602.648.2700 NewGen Advisory C 575.993.8536 C 520.664.4091 License Number 20316 [email protected] [email protected] newgenadv.com DAYS INN & SUITES LORDSBURG, NM 1426 W Motel St, Lordsburg, NM 88045 Table of Contents Confidentiality & Disclaimer Contents All materials and information received or derived from NewGen Advisory, LLC its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or PROPERTY INFORMATION 3 warranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial FINANCIAL ANALYSIS 6 performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters. LOCATION INFORMATION 9 Neither NewGen Advisory, LLC its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials PROPERTY IMPRESSIONS 13 or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of SALE COMPARABLES 17 its own due diligence to determine these and other matters of significance to such party. NewGen Advisory, LLC will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. NewGen Advisory, LLC makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. NewGen Advisory, LLC does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by NewGen Advisory, LLC in compliance with all applicable fair housing and equal opportunity laws. Broker of Record Anthony Becerra Jigar "Jay" Desai Dinesh Rama T 602.648.2704 T 602.648.2700 NewGen Advisory C 575.993.8536 C 520.664.4091 License Number 20316 newgenadv.com [email protected] [email protected] 2 PROPERTY INFORMATION Anthony Becerra Jigar "Jay" Desai Broker of Record Dinesh Rama T 602.648.2704 T 602.648.2700 NewGen Advisory C 575.993.8536 C 520.664.4091 License Number 20316 [email protected] [email protected] newgenadv.com DAYS INN & SUITES LORDSBURG, NM 1426 W Motel St, Lordsburg, NM 88045 Executive Summary OFFERING SUMMARY PROPERTY OVERVIEW Sale Price $1,900,000 The Days Inn & Suites Lordsburg, New Mexico is a 55 unit, two story, interior corridor hotel. This property is very well maintained and also features a very large 2 bedroom/ Year Built 1998 2 bathroom managers quarters on-site along with a large lot for truck parking, and a Lot Size 3.15 Acres detached vacant restaurant building which can be sold or leased out to generate Revenues $951,988 additional income. Currently held by an absentee owner located out of state, this property has a strong upside potential for a new owner and operator. With 55 units Adjusted NOI $489,811 and generating over $900k in sales, this property is ideal for an owner operator to CapRate (Last 3 Yrs Avg) 14.0% improve operations to boost revenue and lower expenses. The Days Inn & Suites 29.3% enjoys leisure, Interstate travel, Military, Border Patrol, and Union Pacific as the Cash on Cash Return largest business generators as the property guests travel through California, Arizona, New Mexico, and Texas. Broker of Record Anthony Becerra Jigar "Jay" Desai Dinesh Rama T 602.648.2704 T 602.648.2700 NewGen Advisory C 575.993.8536 C 520.664.4091 License Number 20316 newgenadv.com [email protected] [email protected] 4 DAYS INN & SUITES LORDSBURG, NM 1426 W Motel St, Lordsburg, NM 88045 Property Details SALE PRICE $1,900,000 UTILITIES & AMENITIES HOTEL SALE OVERVIEW Electric: PNM Water: City of Lordsburg Brand Days Inn & Suites Waste: City of Lordsburg Franchise Of Wyndham Internet: WNM Number Of Rooms 55 Phone: WNM Room Revenue $951,988 Cable: City Cable Company Revenue Per Room 47.42 Washer Specifications: Maytag 60lbs (1) Adjusted NOI $489,811 Dryer Specifications: Maytag 60lbs (2) Cap Rate (Based On Last 3 Yrs Avg) 14.0% PTACs: Mixed (40 New) Pool: Indoor BUILDING INFORMATION Apn # 3108132396660 ROOM MIX TO BE MADE AVAILABLE Year Built 1998 TOTAL ROOMS 55 Framing Wood Exterior Walls Stucco Number Of Floors 2 Zoning Commercial Managers Apartment 2 Bed, 2 Bath Highway Access Yes Broker of Record Anthony Becerra Jigar "Jay" Desai Dinesh Rama T 602.648.2704 T 602.648.2700 NewGen Advisory C 575.993.8536 C 520.664.4091 License Number 20316 newgenadv.com [email protected] [email protected] 5 FINANCIAL ANALYSIS Anthony Becerra Jigar "Jay" Desai Broker of Record Dinesh Rama T 602.648.2704 T 602.648.2700 NewGen Advisory C 575.993.8536 C 520.664.4091 License Number 20316 [email protected] [email protected] newgenadv.com DAYS INN & SUITES LORDSBURG, NM 1426 W Motel St, Lordsburg, NM 88045 Income & Expenses 2017 2018 2019 Notes Income Summary Lodging Sales $ 558,208.46 $ 509,147.07 $ 951,988.43 Other Revenues $ 8,348.04 $ 9,013.80 $ 8,487.69 Room Tax Revenues $ 69,768.31 $ 64,878.67 $ 120,890.20 Cost of Goods Sold $ (117,748.81) $ (106,325.37) $ (171,738.67) Gross Profit $ 518,576.00 $ 476,714.17 $ 909,627.65 Expense Summary Advertising $ 141.66 $ 1,275.00 $ 3,400.00 Automobile Expense $ 4,642.38 $ 2,853.22 $ 5,892.02 Continental Breakfast $ 25,168.41 $ 17,117.10 $ 30,539.09 Gifts and Promotions $ 3,416.00 $ - $ - Insurance Expense $ 16,234.00 $ 15,997.00 $ 17,464.00 Interest Expense $ 54,587.77 $ 55,229.58 $ 53,648.38 Loan Origination Fee $ - $ 10,983.20 $ - Misc Expense $ 2,778.30 $ - $ 2,976.24 Office Supplies $ 1,618.97 $ 1,909.00 $ 723.03 Payroll Taxes $ 15,561.46 $ 13,131.90 $ 14,440.61 Phone, Internet, Cable $ 14,349.06 $ 12,776.90 $ 13,493.21 Professional Fees $ 1,920.00 $ 2,363.85 $ 2,669.29 Property Tax $ 11,109.99 $ 11,119.08 $ 11,117.77 Repairs and Maintenance $ 30,483.66 $ 15,018.25 $ 12,884.89 Room Tax $ 63,101.16 $ 57,200.65 $ 105,528.82 Salaries and Wages - Employee $ 125,280.98 $ 122,034.64 $ 140,576.62 Salaries and Wages - Officer $ 33,600.00 $ 33,600.00 $ 33,600.00 SBA Fees $ - $ 21,685.13 $ - Travel Agent Commission $ 8,233.69 $ 5,893.68 $ 9,608.18 Utilities $ 42,064.64 $ 40,896.32 $ 48,503.34 Total Operating Expenses $ 454,292.13 $ 441,084.50 $ 507,065.49 Unadjusted Net Operating Income $ 64,283.87 $ 35,629.67 $ 402,562.16 Add Backs Interest Expense $ 54,587.77 $ 55,229.58 $ 53,648.38 Loan Origination Fee $ - $ 10,983.20 $ - Salaries and Wages - Officer $ 33,600.00 $ 33,600.00 $ 33,600.00 SBA Fees $ - $ 21,685.13 $ - Total Add Backs $ 88,187.77 $ 121,497.91 $ 87,248.38 Adjusted NOI $ 152,471.64 $ 157,127.58 $ 489,810.54 Broker of Record Anthony Becerra Jigar "Jay" Desai Dinesh Rama T 602.648.2704 T 602.648.2700 NewGen Advisory C 575.993.8536 C 520.664.4091 License Number 20316 newgenadv.com [email protected] [email protected] 7 DAYS INN & SUITES LORDSBURG, NM 1426 W Motel St, Lordsburg, NM 88045 Financial Summary (Based on last three years average) INVESTMENT OVERVIEW Price $1,900,000 Price per Room $34,545 RevPAR $47.42 ADR $63.89 CAP Rate 14.0% Cash-on-Cash Return 29.3% Debt Coverage Ratio 1.96 OPERATING DATA Room Revenue (average) $673,115 Operating Expenses (average) $406,645 Adjusted Net Operating Income $266,470 Pre-Tax Cash Flow $138,977 FINANCING DATA Down Payment $475,000 Loan Amount $1,425,000 Interest Rate 6.5% Amortization Schedule 20 Years Debt Service $127,493 Debt Service Monthly $10,624 Broker of Record Anthony Becerra Jigar "Jay" Desai Dinesh Rama T 602.648.2704 T 602.648.2700 NewGen Advisory C 575.993.8536 C 520.664.4091 License Number 20316 newgenadv.com [email protected] [email protected] 8 LOCATION INFORMATION Anthony Becerra Jigar "Jay" Desai Broker of Record Dinesh Rama T 602.648.2704 T 602.648.2700 NewGen Advisory C 575.993.8536 C 520.664.4091 License Number 20316 [email protected] [email protected] newgenadv.com DAYS INN & SUITES LORDSBURG, NM 1426 W Motel St, Lordsburg, NM 88045 Location Summary QUICK FACTS ABOUT LORDSBURG, NM Population: +/- 2,464 Lordsburg is the county seat of Hidalgo County, New Mexico.