Days Inn & Suites Lordsburg, Nm

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.

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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.

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.

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

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

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

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. The city was founded in 1880, 32 years before New Mexico was Median Income: $30,236 granted statehood. Lordsburg is most well known as the birthplace of New Mexico's state song "O Fair New Mexico", Elevation: 4,249ft which was written by Pat Garrett's daughter. Near by attractions include scenic bird watching and Shakespeare - a famous ghost Climate: Average annual high and low of 79.4 and town that offers a look back to the Old West. Lordsburg is also a 41.6 Respectfully stop along the popular Continental Divide hiking trail which stretches through Montana, Idaho, Wyoming, Colorado, and Major Industries: Healthcare & social services, public New Mexico. Lordsburgs near equidistant location between administration, mining and extraction Tucson, AZ and El Paso, TX makes it an excellent stopping point for travelers along Interstate 10.

Lordsburg is strategic stop between Tucson and el paso

Location Maps

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

Property Impressions

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

Sale Comps

SUBJECT PROPERTY

1426 W Motel St | Lordsburg, NM 88045 Sale Price: $1,900,000 Lot Size: 1.98 AC Year Built: 1998 Building SF: 16,148 SF No. Rooms: 55 $ / Room: $34,545

DAYS INN 1 724 N Bisbee Ave | Wilcox, AZ 85643 Sale Price: $2,100,000 Lot Size: 1.76 Acres 1 Year Built: 1988 Building SF: 28,371 SF Price PSF: $74.02 No. Rooms: 73 $ / Room: $28,767 Closed: 09/20/2019

COMFORT INN & SUITES - DEMING 2 1010 West Pine St | Deming , NM 88030 Sale Price: $2,700,000 Lot Size: 0 Acres 2 Year Built: 2006 Building SF: 52,779 SF Price PSF: $51.16 No. Rooms: 53 $ / Room: $50,943 Closed: 02/01/2019

Sale Comps

QUALITY INN 3 699 Ocotillo Road | Benson, AZ 85602 Sale Price: $2,700,000 Lot Size: 3.21 Acres 3 Year Built: 1985 Building SF: 33,700 SF Price PSF: $80.12 No. Rooms: 83 $ / Room: $32,530 CAP: 7.31% Closed: 05/08/2019

Sale Comps Summary

SUBJECT PROPERTY PRICE BLDG SF PRICE/ROOM # OF ROOMS

Days Inn & Suites 1426 W Motel St $1,900,000 16,148 SF $34,545 55 Lordsburg, NM 88045

SALE COMPS PRICE BLDG SF PRICE/ROOM # OF ROOMS CLOSE

1 Days Inn 724 N Bisbee Ave $2,100,000 28,371 SF $28,767 73 09/20/2019 Wilcox, AZ 85643

2 Comfort Inn & Suites - Deming 1010 West Pine St $2,700,000 52,779 SF $50,943 53 02/01/2019 Deming , NM 88030

3 Quality Inn 699 Ocotillo Road $2,700,000 33,700 SF $32,530 83 05/08/2019 Benson, AZ 85602

PRICE BLDG SF PRICE/ROOM # OF ROOMS CLOSE Totals/Averages $2,500,000 38,283 SF $35,883 69.67

Sale Comps Map

SUBJECT PROPERTY 1426 W Motel St | Lordsburg, NM 88045

DAYS INN COMFORT INN & SUITES - QUALITY INN 1 2 3 724 N Bisbee Ave DEMING 699 Ocotillo Road Wilcox, AZ 85643 1010 West Pine St Benson, AZ 85602 Deming , NM 88030

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] 21 Arizona California New Mexico Texas Colorado 1747 E Morten Avenue 5101 E La Palma Ave 500 Marquette Ave 1106 N State Hwy 360 7900 E Union Ave Suite 202 Suite 100-A Suite 1200 Suite 302 Suite 1100 Phoenix, AZ 85020 Anaheim Hills, CA 92807 Albuquerque, NM 87102 Grand Prairie, TX 75050 Denver, CO 80237